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Town of LaSalle
Short-Term Rental Study
Recommendations
Report
February 2026
Town of LaSalle Short-Term Rental Study
Recommendations Report
2
Table of Contents
1 Introduction ........................................................ 3
2 Analysis of Regulatory Options ......................... 6
3 Recommendations ............................................ 20
4 Next Steps ......................................................... 25
Table of Terminology
STR
Short-term rental
OP
Official Plan
ZBL
Zoning By-law
B&B
Bed and breakfast
Town of LaSalle Short-Term Rental Study
Recommendations Report
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1 Introduction
The Town of LaSalle ("the Town") has engaged WSP Canada Inc. ("WSP") to undertake
a comprehensive Short-Term Rental ("STR") Study. The purpose of this Study is to
review the current policy environment, assess best practices, and provide
recommendations to guide the regulation of STRs through the Town's Official Plan
("OP") and Zoning By-law ("ZBL"), as well as a potential licensing framework.
Specifically, the Study aims to:
» Review the existing policy framework governing STRs in LaSalle.
» Examine best practices and regulatory approaches from comparable
municipalities.
» Develop recommendations for the effective regulation of STR within LaSalle's
planning framework.
Consider amendments, as needed, to the Town's OP and ZBL, as needed, to implement
the regulatory recommendations, as well as consider additional recommendations for
the Town-led creation of an STR licensing framework.
1.1
Purpose of this Report
This Recommendations Report builds on the Background and Issues Report completed
in Fall 2025, which established the policy context and best practices for STR regulation,
as well as summarizing issues identified by the community to address through the
Study. This Report will summarize WSP's analysis of various options for addressing
these issues, and present recommendations for implementation through the Towns' OP,
ZBL, and a future licensing regime.
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1.2
What We've Heard
The Study also includes consultation with key stakeholders, including Tourism Windsor-
Essex Pelee Island (TWEPI), Invest WindsorEssex, and the Windsor Essex Chamber of
Commerce, as well as members of the public to ensure that the Town's final approach
to STRs reflects the values, needs, and priorities of the local community.
Key feedback from stakeholders included:
» General support for permitting STRs but through a regulatory environment that
ensures a balanced level of competition with traditional accommodations like
hotels.
» Support for a licensing framework, especially one which ensures that STRs are
operated in compliance with local building, fire, and health and safety codes and
requirements.
» If the Town elects to levy Municipal Accommodation Tax ("MAT") on local
accommodations, that a licensing framework would make for easier and more
equitable implementing of the MAT for TWEPI.
» That regulating STRs can support housing availability and affordability in the
Windsor-Essex area, which in turn supports the local workforce and the area's
economic viability.
» A regulatory environment can also benefit STR operators, as it opens paths for
marketing collaboration with TWEPI (e.g., listing on TWEPI's website as an
accommodation option for visitors to the Windsor-Essex area).
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As summarized in the Background and Issues Report for the Study, key issues raised by
the community in LaSalle included:
» Increased impacts from STRs on noise, traffic congestion, parking problems,
property neglect, and a diminished sense of community due to temporary
occupancy of housing.
» Many residents shared direct experiences of disturbances and safety issues
linked to STRs in their neighborhoods. Residents reported concerns that STRs
threaten the safety and family-friendly atmosphere, and established character of
LaSalle neighborhoods.
» Worry about the impacts of STRs on higher housing costs and reducing the
availability of long-term rental options, worsening the local housing crisis.
These responses from stakeholders and the community have been considered in the
analysis of options and recommendations in the following sections.
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2 Analysis of Regulatory Options
The Town is predominantly a suburban residential municipality, characterized by high
rates of owner occupancy, stable neighbourhood patterns, limited tourism reliance, and
a housing market that is primarily geared toward permanent residents rather than
seasonal accommodation users. Unlike municipalities which rely heavily on tourism,
LaSalle does not contain significant resort infrastructure, waterfront cottage
concentrations, ski destinations, or visitor-driven commercial districts that typically
shape STR market pressures.
As identified in the Background and Issues Report, a limited number of STRs are
present in LaSalle, but even this small supply has resulted in complaints, neighbourhood
conflict, and potential displacement of long-term housing supply. The Town's planning
and regulatory framework does not currently define or distinguish STRs from other
forms of residential or temporary accommodation. Bed and breakfast ("B&B")
establishments are recognized as a home occupation under the ZBL, but no provisions
exist that differentiate STRs, regulate them as a land use, or determine when they are
considered commercial in nature. This absence of regulation creates uncertainty for
enforcement, complicates municipal response to nuisance events, and poses risk as
STR activity grows.
The findings indicate that LaSalle requires a framework that emphasizes neighbourhood
stability, establishes clear definitions, considers how to treat B&Bs, and ensures that
STR activity remains compatible with residential character.
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Clear policies and zoning regulations on STRs would enable the Town to:
» Define and distinguish STRs and B&Bs.
» Specify where STRs are permitted, prohibited, or restricted.
» Differentiate principal residence STRs from non-principal residence operations
(see options below in Section 2.1).
» Align with recent Ontario Land Tribunal considerations considering STRs as
commercial uses.
» Provide the basis for a licensing framework.
Based on the issues identified (nuisance prevention, neighbourhood stability, housing
protection, clarity in definitions, and the need for enforcement), the following options
represent viable regulatory directions for the Town.
A note for terminology used in the following sections:
» Operator refers to the person(s) advertising and renting a dwelling unit to the
travelling public as an STR. The operator does not necessarily have to be the
owner of the dwelling unit. The operator does not refer to the listing service for
the STR (e.g., Airbnb or VRBO).
» Owner refers to the registered owner of the legal parcel on which the STR is
located. The owner and the operator may be the same person, but the operator is
not always the owner.
» Principal residence refers to any dwelling unit that is occupied full-time, i.e., for
more than 30 days at a time. An Additional Residential Unit may be considered a
principal residence provided that it is occupied full-time.
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2.1
Defining and Permitting STRs
Regulating STRs through land-use planning means clearly defining an STR and clearly
articulating where an STR is permitted.
There are two options for type of STR:
» Principal residence STRs, where the dwelling unit serving as the STR is occupied
full-time as the principal residence of the operator and/or owner; or
» Non-principal residence STRs, where the dwelling unit servicing as the STR is not
occupied full-time as a principal residence, and thus only serves the STR use.
For permitted locations of STRs, there is a broad range of options, from permitting in
certain zones, to permitting in certain specific geographic areas. These two topics (type
and location) have been combined into several options described below.
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2.1.1 Option 1: Permit Principal Residence STRs throughout the Town
This option would permit STRs in dwelling units in all zones in the Town, where the
dwelling unit is the operator's and/or owner's principal residence. To further clarify, this
would permit STRs where the operator is not the owner of the dwelling unit, as long as
the operator lives full-time in the dwelling unit. Under this option, it is recommended that
the Town require proof of consent from the dwelling unit's owner to be operated as an
STR.
Under this option, any dwelling unit could be operated as an STR, including Additional
Residential Units (ARUs). It is important to note that this framework would not permit
scenarios where a property owner builds an ARU accessory to their primary dwelling
unit to be operated solely as an STR. Requiring that the full-time resident of the STR be
the operator can also help to prevent exploitative situations where the owner of an ARU
has a full-time tenant, but also operates the ARU as an STR and displaces the tenant.
Table 1 includes several scenarios to illustrate this point.
Table 1: Illustrative scenarios for STRs in ARUs
Scenario 1
Scenario 2
Scenario 3
Owner builds detached
ARU in their backyard.
Owner builds detached
ARU in their backyard.
Owner builds detached
ARU in their backyard.
Owner rents the ARU to a
full-time tenant.
Owner rents the ARU to a
full-time tenant.
Owner does not rent the
ARU to a full-time tenant.
Tenant operates an STR in
the ARU, with consent of
the owner.
Owner operates an STR in
the ARU, with or without
consent of the tenant.
Owner operates an STR in
the ARU.
Permitted
Prohibited
Prohibited
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This principal residence requirement aligns with emerging practice in municipalities
such as Toronto and Fort Erie, where principal residence requirements have been used
to preserve neighbourhood character and protect housing availability.
This approach would prohibit the establishment of STRs in dwelling units not occupied
by a full-time resident as their principal residence, which can function as de-facto
commercial accommodations in residential neighbourhoods. By restricting STR activity
to dwelling units where the operator resides, this approach is intended to:
» Reduce nuisance concerns related to noise, parking, and waste by placing the
responsibility for the STR on the person who lives there.
» Protect long-term housing stock from conversion STR operations.
» Ensure a level of on-site oversight that mitigates impacts.
» Provide a balanced accommodation option that still supports tourism and
temporary lodging needs.
This model reflects LaSalle's local context, where STRs are not currently widespread,
housing availability is a community priority, and tourism pressures are minor. It provides
a controlled pathway for STR activity without enabling a commercial STR market that
could alter neighbourhood character or strain municipal enforcement capacity.
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Table 2: Implementation options for principal residence STRs
Official Plan
Amend the OP to permit STRs in dwelling units in residential
and rural areas, conditional on the dwelling unit being the
principal residence of the operator.
Add a policy noting that where the operator of an STR is not the
owner of the dwelling unit, the owner must provide written
consent for the operation of the STR.
Zoning By-law
Amend the ZBL to permit STRs as an accessory use in all zones
where dwelling units are permitted.
Add general provision to establish land-use and building
standards such as parking, occupancy, separation distance, and
permitted building types for STRs.
2.1.2 Option 2: Permit STRs in residential and rural zones (without principal
residence requirement)
This option would permit STRs more broadly across LaSalle in both residential and rural
areas, without requiring that the STR be in a principal residence. Under this approach,
STRs could be operated as whole-home rentals, seasonal cottages, etc., provided they
comply with zoning provisions and obtain a municipal licence.
This approach reflects a more permissive regulatory model and would allow LaSalle to
accommodate tourism-related demand, visiting family and workers, and short-term
housing needs, without prohibiting non-principal residence STRs. It would align with
examples found in parts of Niagara region and lake-oriented municipalities, where STRs
form part of the local accommodation supply.
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However, permitting STRs without a principal residence requirement creates several
considerations for LaSalle:
» Greater risk of commercial-style STR operations in neighbourhoods.
» Increased potential for noise, parking, and turnover impacts.
» Reduced availability of long-term rental housing stock.
» Heightened enforcement expectations and resourcing strain, with STR operators
not necessarily directly tied to the STR as their residence.
To manage these risks, this option would require a more robust licensing and
enforcement framework capable of monitoring STR locations, responding to complaints,
enforcing conditions, and suspending licences where necessary. Without licensing, this
option would be difficult to administer and could increase land-use conflict.
This model would create more flexibility for property owners, but it may be less aligned
with LaSalle's existing neighbourhood character, lower tolerance for disruption, and the
absence of significant tourism-driven demand compared with municipalities like Fort
Erie.
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Table 3: Implementation options permitting non-principal residence STRs
Official Plan
Amend the OP to permit STRs in Residential District and
Rural/Agricultural District designations.
Amend existing B&B and agri-tourism policies to bring B&Bs
under the umbrella of STRs.
Zoning By-law
Amend the ZBL to permit STRs as an accessory use to dwelling
units in Residential District and Rural/Agricultural Area zones.
Add general provision to establish land-use and building
standards such as parking, occupancy, separation distance, and
permitted building types for STRs.
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2.1.3 Option 3: Permit STRs only in mixed-use/commercial, tourist, or legacy
areas
This option would limit STR permissions to areas in the Town supporting commercial
uses, or to areas with a legacy of STRs and/or tourism draw. This approach has been
used in several municipalities in Ontario, as shown in the case studies reviewed in the
Background Report for this Study. In LaSalle, however, there is no established area of
the Town where accommodation or tourist uses predominate, and from the data
available to the Town, most existing STRs are located in houses in residential
neighbourhoods. This option would therefore leave a regulatory gap and increase the
potential for unlicensed STRs to continue.
Table 4: Implementation options to permit STRs only in certain areas
Official Plan
Amend the OP to permit STRs in Residential District and
Rural/Agricultural District designations. LaSalle Town Centre
District, Mixed Use Corridor, and Waterfront District
designations.
Retain existing B&B and agri-tourism policies for but add
permissions for B&Bs where STRs are permitted.
Zoning By-law
Amend the ZBL to permit STRs as an accessory use to dwelling
units in the LaSalle Town Centre, Mixed Use Corridor Districts,
and Waterfront Districts zones.
Add general provision to establish land-use and building
standards such as parking, occupancy, separation distance, and
permitted building types for STRs.
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2.2
Distinguishing Short-Term Rentals and B&Bs
B&Bs are defined in the Town's in-effect ZBL but are not permitted as-of-right except as
agri-tourism uses in the Agricultural and Rural Commercial zones, requiring a ZBL
amendment to be permitted in a Residential zone.
Defining and regulating B&Bs separately from STRs is a common approach in
municipalities with numerous existing B&Bs, especially if those B&Bs are already subject
to a licensing framework. In LaSalle, however, given there is no established B&B
industry, the more straightforward approach may be to include B&Bs within the
definition of STRs. If STRs are only permitted where occupied as a principal residence
by the operator (see below for more), there is no difference in land use impacts between
a B&B where one or more meal is provided and an STR where no meals are provided.
Considering B&Bs under the umbrella of STRs also allows for one regulatory and
licensing regime, reducing the complexity of administration and enforcement for both
the Town and operators.
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Table 5: Implementation options for B&Bs
Official Plan
Amend existing B&B and agri-tourism policies to bring
B&Bs under the umbrella of STRs.
Remove the ZBL amendment condition for B&Bs.
Zoning By-law
Amend the definition of B&Bs to include them as a sub-
type of STR.
Amend the definition of agri-tourism uses to reflect the
new STR and B&B definitions.
2.3
Licensing Framework for STRs
Regardless of how and where STRs are defined and permitted in the Town's planning
framework, the Town should enact a municipal licensing program for all STRs. A
licensing program would function as the operational enforcement mechanism to support
the OP and ZBL permissions the Town ultimately selects, and will be necessary for a
STR framework to be successful.
A licensing by-law would be adopted to require that all STR operators obtain and
maintain a licence issued by the Town. This requirement would apply to existing STRs
as well as STRs established following the enactment of the by-law, and by extension
would apply to B&Bs.
The licensing by-law would establish application requirements, operating standards,
enforcement tools, and penalties for non-compliance. This framework is consistent with
the approach taken in Fort Erie, Essex, Kingsville, and other municipalities in Ontario
where licensing is used to ensure accountability, responsiveness, safety, and
neighbourhood compatibility.
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A licensing program in LaSalle would allow for the Town to have oversight over all STRs,
as well as to apply additional requirements not available through just zoning. For
example, STR licenses could be required to be renewed annually, subject to an
inspection to confirm ongoing compliance with fire, building, and health codes, and
proof of liability insurance. Making STRs subject to a license also provides for an
enforcement framework to deal with non-compliance with zoning and other
requirements, including through the Town's Administrative Monetary Penalty System
(AMPS), and a demerit point system.
The primary advantage of this tool is that it provides LaSalle with ongoing oversight and
the ability to intervene when STRs cause disturbances or operate unsafely. Licensing
also establishes a registry for STRs, which is currently absent, making it difficult to
monitor STR activity or respond proactively to issues. This option does require staff
capacity to administer licence applications, track complaints, issue orders, and enforce
suspensions.
This option can be paired with either of the land-use options, but it becomes essential if
LaSalle wishes to:
» Ensure neighbourhood impacts are managed.
» Differentiate responsible operators from problem ones.
» Avoid relying solely on general by-law enforcement for nuisance control.
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Table 6: Implementation options for an STR licensing framework
Official Plan
Establish in new OP policies for STRs that requirements will be
enforced through a licensing framework enacted by municipal
by-law.
Zoning By-law
Establish in new ZBL general provisions for STRs that
requirements will be enforced through a licensing framework
enacted by municipal by-law.
Municipal Licensing
Framework
Enact a municipal licensing by-law which applies to all existing
and future STRs.
Establish clear enforcement mechanisms and penalties,
including but not limited to Administrative Monetary Penalties.
Consider creating supporting or educational documents such as
guides for STR operators and users, standardized signage or
other identification for STRs, and a database of emergency
contacts for each STR.
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2.4
Prohibition
A final option for land use permissions is to prohibit STRs altogether. While in theory,
this option would remove STRs and any associated negative impacts from the Town, in
practice, it is likely that illegal STRs would continue to operate. This places a similar
burden of enforcement on the Town as permitting (but regulating and licensing) STRs,
without any of the benefits of oversight or fee collection.
Table 7: Implementation options for prohibiting STRs Town-wide
Official Plan
Explicitly prohibit STRs anywhere in the Town.
Zoning By-law
Explicitly prohibit STRs anywhere in the Town.
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3 Recommendations
Based on the findings of the Background Report and the analysis in Section 2 of this
report, it is recommended that the Town of LaSalle implement a regulatory framework
that combines the following components:
» Introducing clear zoning definitions that address STRs and B&Bs.
» Permitting STRs Town-wide, but only where the dwelling unit is the operator's
principal residence.
» Adopting a municipal licensing by-law to regulate the operation of STRs.
Together, these measures would permit STRs in a controlled manner that aligns with the
Town's suburban residential context, protects housing availability, minimizes nuisance
impacts, and establishes a consistent and enforceable basis for administration.
Under this recommended approach, STRs would be permitted only where the dwelling
unit is the operator's principal residence. This ensures on-site accountability and
prevents the establishment of investor-operated, commercial-style STRs within
residential neighbourhoods. Limiting eligible dwelling units for STRs to principal
residences responds directly to concerns regarding neighbourhood disruption, property
turnover, enforcement burden, and the erosion of long-term rental housing supply.
A new licensing by-law would regulate the operation of STRs, verify principal residence
status, establish operating requirements, and provide tools to address non-compliance,
including license suspensions and revocations. The licensing framework would create a
registry of STRs, establish clear expectations for hosts and guests, and support
enforcement efforts related to noise, parking, waste management, and other operational
impacts.
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3.1
Official Plan Implementation
STRs are not currently considered in the Town's OP. While most of the implementation
of a regulatory regime for STRs in LaSalle would be accomplished through the Town's
ZBL and a licensing by-law, the OP should be amended to support and enable this
regulation.
It is recommended that existing policies in the OP regarding B&Bs be amended to speak
to STRs, noting that the implementation of STR permissions will be through the Town's
ZBL. More specifically, it is recommended to remove the condition in the OP for a site-
specific ZBL amendment to permit a B&B.
3.2
Zoning Implementation
A ZBL Amendment is required to define and regulate STRs as a land use in LaSalle.
3.2.1 Definitions
It is recommended to make the following amendments to the definitions in the Town's
ZBL:
» Add a new definition for STRs:
o "Short-Term Rental (STR)
A dwelling unit, or portion thereof, used for temporary accommodation for
a period of thirty (30) consecutive days or less, in exchange for payment,
where the operator of the Short-Term Rental is occupying the dwelling unit
on a full-time basis as their principal residence. A Short-Term Rental
includes a Bed and Breakfast, but is not a hotel, motel, country inn, lodging
house or group home."
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» Replace the existing definition for B&Bs with the following:
o "Bed and Breakfast
A Short Term Rental in which both sleeping accommodation and meals
are provided to the travelling public and where the use remains
subordinate to the primary residential use."
» Amend the existing definition for Agri-tourism Uses as follows:
o "Agri-Tourism Uses
Means those farm-related tourism uses, including limited accommodation
such as a bed and breakfast Short-Term Rentals and country inns, that
promote the enjoyment, education, or activities related to the farm
operation or in proximity to farm operations."
3.2.2 General Provisions for STRS
It is recommended to add the following as new general provisions in the Town's ZBL:
» STRs shall be permitted only as an accessory use to a dwelling unit which is a
principal residence.
» Only one STR shall be permitted per lot.
» STRs shall be permitted only as accessory uses in zones that permit dwelling
units.
» STRs shall have a minimum of one parking space per guest room, counted
separately from dwelling unit parking requirements.
» STRs shall not be permitted in accessory buildings, garages, sheds, boats, or
other detached structures which are not dwelling units.
» STRs must comply with Building and Fire Code safety requirements and may only
be located in basements which have dedicated exterior access.
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» Additional refinements may be incorporated based on legal review, administrative
capacity, and final Council direction.
3.3
Licensing Framework
A new licensing by-law should be adopted to regulate the operation of STRs within
LaSalle and ensure that only STRs in dwelling units which are principal residences are
eligible for licensing. The licensing by-law should require that no STR operate without a
valid municipal licence and should establish clear conditions for issuance, renewal,
monitoring, and enforcement. The licensing framework will enable the Town to identify
operators, ensure compliance with safety standards, and manage nuisance issues
proactively rather than relying solely on general municipal enforcement.
The licensing by-law should include the following core elements:
» Requirement that a licence be obtained prior to operating or advertising an STR
within the Town, which is non-transferable between owners/operators or
properties.
» One-year licence duration, with streamlined renewal procedures and renewal
contingent on compliance.
» Requirement that the operator of the STR be the principal resident of the dwelling
unit that is to be used as the STR.
» Proof that the dwelling unit used as an STR is the operator's principal residence,
supported by acceptable documentation.
» If the operator is not the owner of the dwelling unit, proof that the owner has
consented to the use of the dwelling unit as an STR.
» Proof of insurance with minimum liability limits.
» Maximum occupancy standards for each STR.
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» A condition that licences may only be issued to STRs that comply with the ZBL,
Ontario Building Code, Ontario Fire Code, and Town property standards, subject
to inspections by Town staff.
» Submission of required application materials, including proof of insurance, a floor
plan, a parking plan, emergency contact details, and acknowledgement of
responsibilities.
» Establishment of operational standards, including occupancy limits, parking limits
based on available on-site spaces, waste management expectations, and
mandatory posting of licence and guest information inside the dwelling unit being
used as an STR.
» Identification of an emergency contact individual available 24/7 during rental of
the STR, who can attend to issues within a reasonable timeframe.
» Enforcement mechanisms including fines for unlicensed operation, escalating
penalties for repeated violations, a demerit point system tied to nuisance
complaints, and authority to suspend or revoke licences.
This licensing framework provides clarity for operators, owners, other residents of the
Town, and renters of the STR, and ensures that the Town has enforcement authority
proportional to potential impacts. It also establishes a registry that will support
monitoring, complaint response, and long-term policy evaluation.
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4 Next Steps
Following the completion of this Recommendations Report, the following tasks will be
undertaken on the project:
» The Recommendations Report will be consulted on with staff, stakeholders, and
members of the public through the PlaceSpeak platform, and presented to
Council.
» Based on Council direction, supporting amendments to the Town's OP and ZBL,
as needed, will be prepared.
» The proposed OP and ZBL amendments will be brought to Statutory Public
Meeting of Council as required under the Planning Act. At this meeting members
of the public will have the opportunity to speak and/or provide written comments
on the proposed amendments.
» If adopted by Council, the OP and ZBL amendments, along with the
recommendations in this report, can guide the preparation of the licensing
framework and by-law by Town staff.