Steep hike for short-term rental permits in Chelsea catches owners off guard
Gabrielle Huston | CBC News | Posted: February 5, 2025 9:00 AM | Last Updated: February 5
Fee leapt from a maximum of $85 to $750, effective Jan. 14
Short-term rental owners in Chelsea, Que., have until March 1 to find $750 to pay the municipality, or risk losing their permits.
That's a sharp increase from the previous rate of up to $85 that was in effect before the local council approved the increase in December. (Some owners paid less, depending on the size of their property.)
The new fee officially went into effect Jan. 14.
"To me, this looks like a cash grab," said David-Alexandre Jost, who helps his mother operate an Airbnb and told CBC he had no idea the fee had gone up until they reapplied for their permit.
Some community members fear the steep hike will have a negative effect on tourism and the local economy.
The municipality, which caps the number of short-term rental permits available at 65, argues the higher fee is necessary to cover the administrative costs associated with them.
Municipalities 'under the gun'
In arriving at the new fee, the municipality looked at what comparable communities including Val-des-Monts and Cantley are currently charging.
Chelsea Coun. Rita Jain, who represents District 5, said the municipality has been looking for other ways to raise money so it's less dependant on taxes.
"Most municipalities are under the gun," she said.
Jain nevertheless voted against the rise because she found it too drastic, calling it a "hidden tax."
"I used to have [a short-term rental] and there's not that much profit," she said. "I knew that the fee ... was not going to be received well."
Chelsea Mayor Pierre Guénard told Radio-Canada some owners are operating their short-term rentals like a business, and pointed out $750 is still far less than they'd be paying in comparable commercial fees.
Jain said she suggested the municipality find a way to distinguish between those owners and others who are operating on a much smaller scale, but her advice was not taken.
Owners warn of economic fallout
Jost was among 12 short-term rental owners who attended an information session held by the municipality on Monday. He said the new fee will force him to raise his prices, and he worries that will discourage renters.
"People are trying to get as much from their money that they can," he said. "I hope that the [extra] $10 a night is not going to ... make that big of a difference. But who knows?"
Marc Freedman, who owns a bed and breakfast called The Hidden Treasure, has a similar worry.
"Ultimately, in my opinion, it will affect tourism to a certain extent," Freedman told Radio-Canada in French.
Freedman, who paid just $30 last year, said the jump to $750 feels "very unfair." He's now planning to circulate a petition to bring to council.
Jost said the municipality didn't do a good job informing short-term rental owners about the change to allow them to plan for it.
"I think they knew there was going to be backlash," Jost said.
Guénard confirmed the municipality did not notify owners by letter. He pledged to meet with staff to discuss some of the complaints that have been raised.
Jost, who has already paid the new fee, said there was no indication Monday that the municipality is considering lowering it, but may consider allowing it to be paid in instalments.
Freedman, who retired from his job in IT support at Radio-Canada/CBC, now lives on his pension and the income from the inn. He has not paid the new fee, and said he's still weighing whether to raise his prices.