Timmins, Ont., targets Airbnb with new rules for short-term rentals

Timmins has joined a growing list of northeastern Ontario cities imposing regulations on short-term rentals such as Airbnb and Vrbo. 

Under a bylaw that took effect Jan. 14, short-term rental properties must now be licensed as businesses. The bylaw requires rental operators to meet property standards, follow health and safety regulations and collect a four per cent Municipal Transient Accommodation Tax.

Mayor Michelle Boileau said the changes aim to ensure fairness and safety while creating a new revenue stream for the city.

"This is a revenue source for the municipality. It's a tool that we have to generate revenue without being on our tax base on the tax levy," Boileau said.

"[Consumers] can be assured that their short-term accommodation will meet all of the safety requirements. As property owners treat this as a business venture, it will enhance the quality of the rental units available."

Funds collected through the Municipal Transient Accommodation Tax will be reinvested in local events, recreational facilities and community assets, she added.

Andrew Vincent, a Timmins real estate agent and Airbnb host, has mixed feelings about the bylaw. While he supports licensing and safety requirements, he said the new rules could make short-term rentals less competitive.

"We're going to be having to charge an extra four per cent to our guests … and so it's pretty significant when you're talking about trying to stay competitive in the market," Vincent said.

"I understand why the city is doing it because there is public outcry across the country against landlords and Airbnb owners for taking rental properties off the market and turning them into short-term rentals. But at the same time, as a landlord and property manager for the last 10 years or so, my experiences with long-term rentals have just been an absolute disaster. "

Vincent said the challenges of being a long-term landlord include navigating Ontario's Landlord and Tenant Board. This makes short-term rentals a more viable option for him.

Boileau noted compliance will be phased in gradually to give property owners time to adapt. The city is also applying for a grant to hire an enforcement officer dedicated to ensuring properties meet the bylaw's standards.

"I've had a few property owners already reach out to me asking about when they could expect this to come into play. So those who are really making a business of this, that are doing this seriously, we expect that link with us, but we're going to ensure that there's adequate communication as we continue over the course of the next few months.," she said.

Timmins joins cities like Greater Sudbury, Sault Ste. Marie and North Bay that have implemented similar regulations. Smaller communities such as French River and Billings Township have also brought in rules for short-term rentals, while Wawa is expected to vote on a bylaw in the coming months.