Fight For Short-Term Rentals Heats Up As Homeowners Struggle With Rising Inflation

Homeowners struggling with rising interest rates are being edged out of the short-term rental market due to township bylaws.

Dipen Parekh, who owns a cottage in Washago, has been looking into alternative revenue streams, to avoid having to sell his family’s property.

Parekh was hoping to seek relief in the short-term rental market, but recently found out his property was in violation of the townships’s short-term rental bylaw by a discrepancy of 30 metres.

His property, which is governed by the Township of Ramara, is required to obtain an annual licence to operate a short-term rental.

The STRA – Short Term Rental Accommodation Licensing Bylaw states: “No person, applicant or owner shall be granted a licence to operate a short-term rental accommodation if the location of the proposed short term rental accommodation is within three hundred (300) metres of any lot line of a property that holds a valid short-term rental accommodation licence issued in accordance with this bylaw.”

Parekh is 270 metres from another short-term rental, which puts him in violation of the bylaw by 30 metres.

“We thought we could do a short-term rental for a year or so until the interest rates lowered,” said Parekh. “But there is an existing rental property within 300 metres, which prevents us from doing so. I have reached out to the bylaw office and my city councillor, but have had no luck and was turned down.”

There are currently 95 short-term rentals in the Township of Ramara, but Parekh believes other homeowners are facing similar issues when it comes to listing their properties.

Representatives from the Township of Ramara, however, believe that the bylaw is a vital means for preserving the well-being of the community, and preventing the area from being over-run by short-term rentals.

“The Township STRA Licensing bylaw was implemented in 2020 as a result of increased complaints about short term rental properties related to noise, parking, fire works, burning, occupancy rates and general behaviour affecting our residential neighbourhoods,” said Jon Popple, Township of Ramara’s Manager of Community Standards and Rec. “This licensing program set very strict guidelines and standard to obtain a license. In 2021, the bylaw was amended to include a 300 metre setback or distance between licensed locations. This minimum setback ensures entire residential streets don’t become rentals only.”

The bylaw has been enforced without exception since October 25, 2021, when the bylaw was amended to include the 300 metre setback.

“The STRA licensing bylaw has proven to be an effective way to ensure properties can be used as rentals, but used within specific guidelines and rules to ensure Ramara neighbourhoods continue to be an enjoyable and peaceful community to live in and visit,” said Popple.

Parekh has considered fighting to change the bylaw, but believes it is a losing battle.

“The city should be mindful if homeowners are facing issues,” said Parekh. “They should be able to amend the bylaw for a short duration and then bring back the original bylaw. This way you are helping the local residents.”

Parekh’s other option is to find a long-term rental tenant, for which the short-term rental bylaw would not apply. To date, there has been no interest in his long-term rental listing.

“At this point, I have no other option but to sell my family cottage,” said Parekh. “I am still trying to see if I can get a long-term rental tenant, but there is not much market for long term rentals in this area. My aim is to keep and sustain the property if possible, but I am losing hope.”