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HomeMy WebLinkAboutCOR-2025-041 - Short-term Rental By-lawStaff Report l IKgc.;i' r� R Corporate Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 2, 2025 SUBMITTED BY: Amanda Fusco, Director, Legislated Services, 519-904-1402 PREPARED BY: Kristin VanDerGeld, Manager of Licensing, 519-904-5605 WARD(S) INVOLVED: All DATE OF REPORT: April 17, 2025 REPORT NO.: COR -2025-041 SUBJECT: Short-term Rental By-law RECOMMENDATION: That the Short-term Rental By-law be approved in the form shown attached to staff report COR -2025-041 as Appendix "A" to COR -2025-041, That the fees set out in Appendix "B" of staff report COR -2025-041 be approved; and That the request for one (1) Full Time Equivalents (FTE) to support the administration, inspection, and enforcement of the Short -Term Rental By-law be approved. REPORT HIGHLIGHTS: • The purpose of this report is to provide follow-up as requested by Council at the June 24, 2024, meeting. • Staff have separated the short-term rental provisions from the Shared Accommodation By-law as proposed in staff report COR -2024-233 and COR -2024-288 to create a stand- alone Short-term Rental By-law. • Additional community engagement with potential stakeholders was conducted in the form of in-person sessions and an online Engage Kitchener survey. • This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. BACKGROUND: On June 24, 2024, Council considered report COR -2024-288 (Supplemental Shared Accommodation By-law) and report DSD -2024-249 (City-wide Lodging House Review) which sought approval to allow lodging houses city-wide in conjunction with a proposed licensing framework that would regulate both lodging houses and short-term rentals in the form of a Shared Accommodation By-law. While the amendments to the City's Official Plan and Zoning By -Law to permit lodging houses city-wide in all residential zones were approved, staff were *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 25 of 57 directed to separate the proposed licensing regulations for Lodging Houses into a stand-alone by-law and that the proposed Short -Term Rental provisions be deferred to allow additional time to further review requirements and conduct further engagement with potential stakeholders. On August 12, 2024, the Finance and Corporate Services Committee considered report COR -2024- 344 (Lodging House By-law) which sought approval of licensing framework to regulate lodging houses in the form of a Lodging House By-law. The Lodging House By-law was approved and came into effect on January 1, 2025. 1 n the final quarter of 2024, staff explored options for short- term rental licensing, making a deliberate effort to engage with the community further as well as examine the approaches taken by other municipalities. As a result, a proposed Short-term Rental By-law was developed. This report is seeking Council's approval of the Short-term Rental By- law, associated licensing fees and additional staffing resources. REPORT: Regulating short-term rentals (STRs) through licensing is becoming increasingly important as the market for platforms like Airbnb, Vrbo, Expedia, and Booking.com has grown rapidly in recent years. These platforms allow property owners to rent out their homes or rooms for short stays, offering significant benefits, such as increased income for hosts and more affordable, unique accommodation options for travelers. However, as STRs proliferate, concerns have emerged that necessitate formal regulation. Some key reasons why licensing STRs is crucial: • Public Safety • Consumer Protection • Nuisance Control • Enabling Data Collection Engagement: Staff explored options for Short -Term Rental Licensing by conducting thorough community engagement, meeting with interested stakeholders, and examining the strategies employed by neighboring municipalities. Further engagement sessions were conducted in collaboration with the City of Waterloo, who was also reviewing short-term rental regulations. To ensure the greatest amount of qualitative feedback from the community, staff collaborated with the city's Community Engagement Consultant to develop thorough, objective, and non - biased survey questions to inform Council regarding impacts, licensing regimes and neighborhood integration of short-term rentals. An online Engage Kitchener survey was posted between November 5th, 2024, and December 6th, 2024, and the survey was advertised on social media, the City's website, and within City facilities. Survey links were also shared with student associations like CSI and with individuals who had previously engaged with staff. The survey on short-term rentals had 581 contributors, with 18% of survey respondents identifying as short- term rental owner/operators and the remaining 82% identifying as citizens who reside in a neighbourhood where a STR is operating and other interested parties. Key highlights from the short-term rental survey results include the following: • 65% of respondents felt that short-term rentals should be regulated through licensing • 51% of respondents described their experience having a short-term rental property in their neighbourhood as negative or very negative. Page 26 of 57 • 53% of respondents felt that operating a short-term rental was a business. • 59% of respondents felt a short-term rental should be restricted to an owner's principal residence. • 61 % of respondents felt the maximum number of days for a short-term rental should be 30 days or less. The survey also provided respondents the opportunity to offer free -form suggestions, ideas, and feedback. Key takeaways from those comments include: • Some respondents suggested that a complete ban on short-term rentals should be considered. • Many respondents feel that short-term rentals worsen the housing crisis by decreasing the availability of long-term rental options, increasing housing prices, and creating competition for affordable housing. • Some respondents pointed out the positive impacts of STRs, including well-maintained properties, boosted tourism, and the provision of flexible housing options for temporary needs. • Negative perceptions of STRs include issues like noise, nuisance, parking, lack of accountability from absentee owners, and a decline in community cohesion. • Supporters of STRs highlighted that short-term rentals boost the local economy by encouraging tourism and generating job opportunities for cleaners, maintenance workers, and other service providers. • Some respondents believed a tiered licensing approach would be useful to differentiate between commercial operators and hosts who rent out their principal residence. In addition to the survey, staff also held two joint in-person engagement sessions with the City of Waterloo on November 18th and 27th, 2024. These sessions were attended by approximately 40 people combined, primarily comprised of short-term rental operators. At these sessions, staff presented regulatory options being used by other area municipalities, potential insurance implications, and had a presentation by a representative from Airbnb to discuss the company's position on licensing. The key take-aways from these sessions were: • Some participants supported licensing frameworks for better safety and accountability, while others opposed them, citing potential challenges for small operators, higher costs, and decreased flexibility. • Participants emphasized the economic benefits of short-term rentals, including generating local revenue and supporting tourism. • Some expressed concerns about the cost and necessity of commercial insurance for hosts. • Participants discussed principal residence requirements, with a preference for a tiered licensing approach. • There were discussions about the differences between short-term and long-term rentals, along with concerns regarding how the Residential Tenancies Act regulations might apply. Page 27 of 57 Municiaal Scan: A thorough review of municipalities with existing short-term rental by-laws was conducted, and staff met with representatives to gather feedback on their licensing programs. Additionally, staff engaged with Explore Waterloo Region and received insights into how other provinces, such as Nova Scotia, are handling licensing. Staff also reviewed the City of Cincinnati's Short -Term Rental By-law, as it was highlighted as a point of interest during our engagement sessions. Overall, municipalities are adopting a licensing framework from STR's, and many are limiting operators to a single STR unit within their principal residence and prohibiting commercial or multi -listing operators with the objective of protecting the long-term rental housing market. Research into other jurisdictions that have implemented the principal residence restriction have expressed challenges from an enforcement perspective because it is resource -intensive and requires significant investigation. During our engagement sessions many operators expressed a clear preference for maintaining their properties as short-term rental units and confirmed they would not transition into the long-term rental market, should such a restriction be imposed. Additionally, many municipalities have opted to license short-term rental platforms like Airbnb, rather than just the hosts, for several key reasons such a better enforcement and compliance, transparency and data access, and mitigating negative impacts. Application requirements vary by municipality, but the majority are renewed annually and have minimum requirements such as an associated licensing fee, proof of ownership, proof of principal residence (where applicable), and insurance. Some municipalities have chosen more robust requirements that include electrical and HVAC inspections, property maintenance plans, and a criminal record check. During stakeholder engagement sessions staff presented the benefits and challenges of STR's, policy options, what other are municipalities are doing, and potential application requirements. City of Cambridge currently does not have any short-term licensing regulations in place and the City of Waterloo has amended their Residential Rental Licensing By-law to allow for the operation of a short-term rental in an owner's principal residence in low-rise rental properties. This was implemented as interim measure until a broader rental licensing review is completed. During these sessions staff heard that many STR operators rely on this as their primary source of income and are not opposed to licensing but expressed that an overly complex application or inspection process could create barriers for small business owners. Proposed By-law Components The proposed By-law aims to regulate short-term rentals through a tiered licensing system that establishes rules for both principal and non -principal residence STRs, as well as for hosting platforms such as Airbnb and Vrbo. A Short -Term Rental is defined as a Dwelling Unit or part thereof used to provide transient sleeping accommodations for a period of thirty (30) consecutive days or less, typically facilitated through a Short-term Rental Company, and may include a traditional bed and breakfast, but does not include a rental arrangement exceeding thirty (30) consecutive days. Page 28 of 57 Residential rental properties that are operating as long-term rentals (more that 30 consecutive days) will not be captured under this By-law. The licence categories include the following: Short -Term Rental Com Would capture any online service, website, mobile application, or other digital platform that markets and brokers the booking, reservation, or rental, of a Short -Term Rental for compensation (such as Airbnb and Vrbo). Short -Term Rental Princiaal Residence: Includes any person who operates or permits the operation of a Short-term Rental in their Principal Residence. Short -Term Rental Commercial: Incorporates any person who operates or permits the operation of a Short-term Rental in a dwelling unit that is not their Principal Residence. Application Requirements: Application requirements include detailed floor plans that indicate the locations of all smoke and carbon monoxide alarms, a fire checklist, confirmation of insurance, proof of ownership and principal residence where applicable, and a Dedicated Responsible Person that will adhere to requisite response times in relation to the STR. A Guest Handbook will be developed by staff and completed by the licensee, and it will contain contact information for the Dedicated Responsible Person, emergency and non -emergency services, and reference materials associated with relevant city by-laws such as noise, nuisance, and parking. What Staff Heard: Staff conducted significant engagement and are recommending modifications to what was originally proposed in Shared Accommodation staff report COR -2024-233. This is what we heard: What We Heard Proposed Modification • Bedroom limits would decrease • Removed bedroom limits but all income potential and flexibility. rooms used for guest accommodation must meet applicable building standards. • A requirement to keep a guest registry • Requirement removed for STR hosts. would be cumbersome and all guest STR Company's (platforms) will be information is not always provided to required to keep a record of each the STR hosts by the platforms. concluded transaction in relation to a Page 29 of 57 The proposed modifications will offer a structured, low -barrier way to bring STR activity into compliance with licensing requirements while improving oversight and accountability, supporting public safety, while providing useful data collection that can help to track trends such as the impact on long-term housing, neighbourhood concerns, and can inform future policy decisions. Page 30 of 57 Short-term Rental listed or advertised on its platform. • Limiting the number of days that an • Removed the cap on number of days STR can operate per year would an STR can operate per year. reduce host income and would involve undo administrative complexity. • Booking length of a maximum of 90 • STR definition updated to reflect consecutive days was not conducive accommodations for a period of thirty to those that may need a STR for a (30) consecutive days or less. Any longer stay due to family medical, stay longer than 30 days would not be renovations, or insurance claims. considered a STR. • Limit the number of inspections A fire safety checklist and basic floor required upon application and plans will be required to confirm reconsider floor plans. Guest reviews compliance with minimum fire safety and ratings act as informal quality and building standards. Inspections control. may be conducted in response to complaints or if an application package is deemed incomplete or unsatisfactory. • A tiered licensing approach allows for • The proposed by-law incorporates a flexibility and may reduce licensing tiered licensing approach for principal costs. residence operators, commercial operators, and platforms. • The proposed licensing fees are too • Fees have been reduced while high for small business owners. supporting a cost recovery model and include licensing STR Companies. • Meeting insurance requirements will • Staff continue to recommend significantly increase premiums. insurance requirement based on advice provided by the Waterloo Region Municipal Insurance Pool. If the STR is already adequately insured as contractually required to do so under their insurance policy, there should be no additional cost/premiums charged. The proposed modifications will offer a structured, low -barrier way to bring STR activity into compliance with licensing requirements while improving oversight and accountability, supporting public safety, while providing useful data collection that can help to track trends such as the impact on long-term housing, neighbourhood concerns, and can inform future policy decisions. Page 30 of 57 Implementation Plan: As with the introduction of any new by-law, there will be an initial period of preparation to allow for system modifications, administrative organization, recruitments/training of staff, and process improvements. Followed by a public awareness campaign that will focus on regulations. Staff will work Communications to establish a presence on the City of Kitchener website to provide information and application requirements. Application intake will begin on January 1, 2026, for those seeking an opportunity to voluntarily comply with the new licensing regulations. Fnfnrcement- As a result of the proactive planning and strengthened enforcement measures introduced through the Lodging House Program, Council approved the addition of two full-time equivalent (FTE) positions—a Licensing Inspector and a Property Standards Officer. These roles are expected to have the capacity to absorb inspection and enforcement responsibilities related to short-term rentals. Enforcement will be carried out primarily by Licensing Inspectors through field inspections, monitoring of online platforms, and information sharing with both internal departments and external partners. Reactive enforcement will be conducted based on response to public complaints and will be investigated based on urgency and public safety. Licensing and Property Standards enforcement will be conducted using a progressive approach which may include but is not limited to fines and or charges under the Provincial Offences Act/Administrative Monetary Penalty System. The Manager of Licensing may apply conditions on a licence or refuse/revoke a licence (subject to a hearing before the Licensing Appeal Committee). Administration: Staff project that there are approximately 600-800 STR's operating in Kitchener. There is currently no capacity for existing staff to intake, review, analyze and process the expected volume of STR applications in addition to the approximately 3,000 business license applications that are processed annually. Staff are requesting the addition of one (1) new Licensing Administrator to assist with customer service, application processing and issuance. It is expected that the expenses related to the FTE will be off set by the collection of licensing fees (Appendix B). Zoning By-law Compliance: Staff have identified that at such time as Short Term Rental By-law comes into effect, Zoning By-law regulations for `tourist home' and `bed and breakfast' as home business uses are no longer required. As such, staff anticipate advancing a Zoning By-law amendment during the implementation period to remove these uses from the Zoning By-law. This will eliminate duplication and potentially contradictory regulations. Page 31 of 57 STRATEGIC PLAN ALIGNMENT: This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. FINANCIAL IMPLICATIONS: If supported, the Short -Term Rental Program would have operating budget financial implications associated with the cost of 1 full-time employee (salary and fringe benefits). Staffing includes a Licensing Administrator $93,871.56. The recruitment of 1 full-time equivalent (FTE) to oversee the administration of the Short -Term Rental By-law is a minimum requirement for ensuring the success of the program. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. CONSULT — Staff used the Engage WR platform to solicit public feedback on STR's and potential licensing regulations which solicited engagement from over 500 respondents. In addition, staff reached out to groups such as Conestoga Students Inc., and members of K -W Airbnb. COLLABORATE — In collaboration with the City of Waterloo staff hosted two joint in-person engagement sessions on November 18th and 27th, 2024. These sessions were attended by approximately 40 people combined, primarily comprised of short-term rental operators. At these sessions, staff presented regulatory options being used by other area municipalities, potential insurance implications, and had a presentation by a representative from Airbnb. . PREVIOUS REPORTS/AUTHORITIES: • COR -2024-288 Supplemental Report Shared Accommodation By-law • COR -2024-233 — Shared Accommodation By-law • DSD -2024-249 - City-wide Loding House Review • DSD -2021-11 — Lower Droon Land Use Study Recommendations Report • DSD -20-214- Housing for All — City of Kitchener Housing Strategy • Municipal Act, 2001 • Planning Act APPROVED BY: Victoria Raab, General Manager, Corporate Services ATTACHMENTS: Attachment A — Short -Term Rental By-law Attachment B - Licensing Fees Page 32 of 57 BY-LAW OF THE CORPORATION OF THE CITY OF KITCHENER BY-LAW NO. 2025 -XXX BY-LAW TO PROVIDE FOR THE LICENSING AND REGULATION OF SHORT-TERM RENTALS IN THE CITY OF KITCHENER. WHEREAS it is deemed expedient to exercise the powers conferred on Council by the Municipal Act, 2001, S.O. 2001, c.25 (the "Municipal Act"), as amended; AND WHEREAS Section 8 of the Municipal Act, provides that a municipality has the capacity, rights, powers, and privileges of a natural person for the purpose of exercising the authority under the Act; AND WHEREAS Section 8(3) of the Municipal Act, authorizes a municipality to provide for a system of licences; AND WHEREAS Section 11 of the Municipal Act authorizes a Municipality to pass bylaws responding to health, safety and well-being of person, parking on property, structures include fences and signs; AND WHEREAS Section 151 (1) of the Municipal Act authorizes a municipality to provide for a system of licences with respect to a business and to prohibit carrying on or engaging in the business without a licence and to take other actions with respect to such licences; AND WHEREAS Section 151 (1) of the Municipal Act authorizes a municipality to license, regulate, or govern real and personal property used for the business and the persons carrying it on or engaged in it; AND WHEREAS Section 425 of the Municipal Act authorizes a Municipality to create offences; AND WHEREAS Section 429 of the Municipal Act authorizes a Municipality to establish a system of fines or offences under a by-law of Municipality passed under the Act; AND WHEREAS section 434.1 of the Municipal Act, 2001 authorizes the City to require a Person, subject to such conditions as the municipality considers appropriate, to pay an Administrative Penalty if the municipality is satisfied that the Person has failed to comply with a by-law of the City; NOW THEREFORE the Council of The Corporation of Kitchener enacts the following: Page 33 of 57 1. Definitions "Administrative Penalty By-law" means the Administrative Penalty System for Violations of Non -Parking By-laws, By-law Number 2024-001 of the City, as amended from time to time, or any successor thereof. "Adult" means an individual eighteen years of age or older. "Agent" means a Person authorized in writing by an Owner to act on the Owner's or group of Owner's behalf. "Applicant" means the Person applying for a Licence or renewal of a Licence under this by-law. "Application" shall include any Application for a Licence or renewal of a Licence on the form provided by the Manager of Licensing, or their designate, and such application being to the satisfaction of the Manager of Licensing and in accordance with the requirements set out in this By-law. "Application Licence Fee" means a pre -determined fee approved by Council through the User Fee Schedule as part of the budget that is paid by a Person as part of the Application for a Licence. "Bedroom" means a room or area used, separated from the common living area(s) which is equipped with a sleeping type bed and a closable, latching door for privacy. A Bedroom shall further meet the requirements for natural light as set out in the Building Code Act, and if located in a basement, must provide the for adequate means of egress, as approved by the City's Fire Department. "Building Code Act" means the Building Code Act, 1992, S.O. 1992. c.23, as amended, including any regulations enacted thereunder. "Business" except where inconsistent with the context means any Business wholly or partly carried on within the City of Kitchener even if the Business is being carried on from a location outside of the City of Kitchener and includes without limitation: a) trades and occupations; b) the operation of a Short -Term Rental; c) exhibitions, concerts, festivals, and other organized public amusement held for profit or otherwise; d) the sale or hire of goods or services on an intermittent or one-time basis and the activities of a transient trader; and e) the display of samples, patterns, or specimens of goods for the purpose of sale or hire. Page 34 of 57 "Chapter" shall refer to a by-law of the City which has been incorporated in The City of Kitchener Municipal Code and assigned a Chapter number. "Chief Building Official" means the Chief Building Official of the City or their designate. "Chief Fire Official" means the Chief Fire Official of the City or their designate. "Chief of Police" means the Police Chief for the Waterloo Regional Police Services or their designate. "City" means The Corporation of the City of Kitchener. "City Solicitor" means the City Solicitor of the City or their designate. "Corporation" means a body incorporated pursuant to the Business Corporations Act, R.S.O. 1990 c. B.16, or the Corporations Act, R.S.O. 1990, c. C.38, the Not -for -Profit Corporations Act, 201, S.O. 2010, c.15, or other applicable Federal or Provincial Act, as the case may be. "Council" means the elected officials comprising the municipal council of the City. "Dedicated Responsible Person" means a Person who is either the Owner/Licensee or an agent, representative, or property maintenance company who is authorized to act on behalf of the Owner/Licensee and who is responsible for managing and addressing issues in relation to the Licensed Premises. "Designated Provision" means any section of this By-law designated in accordance with section 12.4 of this By-law. "Director" means the Director of Legislated Services of the City, their successor in title, or their designate. "Dwelling Unit" means a building or part thereof used or intended to be used as a residential unit that contains cooking, eating, living, sleeping and sanitary facilities. "Floor Plan" means a scale diagram of the arrangement of rooms in one story of a building. "Government -Issued Identification" means an official document issued by a government authority that serves as proof of a person's identity and includes, but is not limited to, a driver's licence and passport. "Guest" means a Person renting a Short -Term Rental by way of concession, permit, lease, rental agreement or similar contractual arrangement. Page 35 of 57 "Guest Handbook" means a document that has been prepared and approved by the Manager of Licensing and completed by the Licensee which, among other things, prescribes the roles and responsibilities of the Guest and Owner/Licensee, including but not limited to expectations as they relate to non -disturbance of neighbours; compliance with applicable City by-laws, and adherence to the provisions of this by-law. "Human Rights Code" means the Human Rights Code, R.S.O. 1990, c. H.19, as amended. "Incomplete Application" means where required information is missing on the Application form; information or documentation required by the Manager of Licensing as part of the Application has not been provided; or the full Application Licence Fee is unpaid including any late fee and/or penalty fee. "Licence" means a licence to operate a Short -Term Rental issued under this By-law and the termed "licensed" shall have a corresponding meaning. "Licensed Premises" means the Dwelling Unit referred to on a Licence issued pursuant to this By-law. "Licensee" means a Person who has been issued a Licence under this By-law. "Licensing Appeal Tribunal" means a committee designated by Council for the purpose of hearing any appeal under this By-law. "Manager of Licensing" means the City's Manager of Licensing, their successor in title, or their designate. "Medical Officer of Health" means the Medical Officer of Health for the Region of Waterloo Public Health or their designate. "Municipal Act" means the Municipal Act, 2001, S.O. 2001, c. 25, as amended. "Officer" means an employee or agent of the City or a member of the Waterloo Regional Police Services and shall include, without limitation, the Manager of Licensing, a municipal law enforcement officer, by-law enforcement officer, or Business Licensing Inspector, the Director, the Chief Fire Official, the Chief Building Official, the City's Director of By-law Enforcement, or any person or inspector duly authorized on their behalf or otherwise authorized by Council. "Ontario Fire Code" means the Ontario Regulation 213/07: Fire Code, under the Fire Protection and Prevention Act, 1997, S.O. 1997, c. 4. "Owner" means the registered owner of the Property, or a Person who has leased the Property. Page 36 of 57 "Person" includes an individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, and a natural person in their capacity as heir, trustee, executor, administrator, or other legal representative. "Premises" means land, Property or any part thereof including all buildings or other parts thereon. "Principal Residence" means the primary and permanent place of residence where an owner(s) or a lessee of a Property predominantly reside and has designated it as their principal residence on their income tax filing, property bills, and in other government records. "Property" means any lot, block, or other area in which land is held or into which it is subdivided, including the building and structures, and pools thereon. "Regulations of this By-law" means the provisions of this By-law including the applicable schedules. "Short -Term Rental" means a Dwelling Unit or part thereof used to provide transient sleeping accommodations for a period of thirty (30) consecutive days or less, typically facilitated through a Short-term Rental Company, and may include a traditional bed and breakfast, but does not include a rental arrangement exceeding thirty (30) consecutive days. "Short -Term Rental — Principal Residence" means any Person who operates or permits the operation of a Short -Term Rental in their Principal Residence. "Short -Term Rental — Commercial" means any Person who operates or permits the operation of a Short -Term Rental in a Dwelling Unit that is not their Principal Residence. "Short -Term Rental - Company" means any online service, website, mobile application, or other digital platform that markets and brokers the booking, reservation, or rental, of a Short -Term Rental for compensation. "Zoning By-law" means all applicable by-laws in effect and enacted in accordance section 34 of the Planning Act, R.S.O. 1990, c. P.13, as amended, that restrict the use of land in the City. Page 37 of 57 2. Regulated Short -Term Rentals 2.1 The Short -Term Rentals as set out in Schedule 1 are subject to the requirements of this By-law and to the requirements of the applicable schedules as shown therein. 2.2 The applicable requirements of a schedule to this By-law shall prevail over the general requirements of this By-law to the extent of any conflict. 3. Prohibitions 3.1 This By-law shall not apply to the following, where not defined herein shall be defined in section 3 of the City of Kitchener Zoning By-law: a) Hotel; b) Motel; c) Inns; d) Lodging House; or e) any rental unit to which any of the following Acts, or their regulations apply: i) Homes for Special Care Act, R.S.O. 1990, c.H12, as amended; ii) Long -Term Care Homes Act, R.S.O. 1990, c.17, as amended; iii) Retirement Homes Act, 2010 S. 0. 2010, c. 11, as amended, iv) Social Housing Reform Act, 2000, S. 0. 2000, c.27, as amended, v) Hotel Registration of Guests Act, R.S.O. 1990, Chapter H.17, as amended; vi) Accommodation Sector Registration of Guests Act, 2021, R.S.O. 2021, chapter 21, Schedule 1, as amended; and/or, vii) Residential Tenancies Act, 2006, S. 0. 2006, c. 17. 3.2 No Person shall: a) own, operate, permit to be operated, or act in the capacity of a Short -Term Rental set out in Schedule 1 without a Licence issued in accordance with this By-law; b) own, operate, permit to be operated, or act in the capacity of a Short -Term Rental as set out in Schedule 1 without complying with the Regulations of this By-law; c) operate a Short -Term Rental licensed under this By-law: i. at a location other than the Licensed Premises where applicable; Page 38 of 57 ii. under any other name than the name(s) identified on the Licence; iii. except in accordance with the Regulations of this this By-law; or iv. without complying with any and all conditions or restrictions placed on the Licence by the Manager of Licensing; d) transfer or assign a Licence to any other Person or to any other location other than the Licenced Premises; e) provide false or misleading information to the City when applying for a Licence under this By-law, renewing a Licence or at any other time; f) hold themselves out as Licensed under this By-law without holding the appropriate Licence; g) advertise or permit the advertisement or operation of a Short -Term Rental without a Licence; or h) advertise a Short -Term Rental without including the current Licence number in every advertisement. 4. Licensing Requirements 4.1 An Applicant applying for a Licence shall submit the following to the Manager of Licensing: a) a complete Application in the form prescribed by the Manager of Licensing; b) the applicable Application Licence Fee; c) any other documents as required by the Regulations of this By-law; and d) any documentation that may be required by the Manager of Licensing with respect to investigations required pursuant to this By-law. 4.2 If not prescribed by the By-law, upon receipt of an Application, the Manager of Licensing shall make or cause to be made all investigations which they deem necessary. Page 39 of 57 4.3The Manager of Licensing may require the Applicant to have investigations conducted and obtain documentation from and provide to the Manager of Licensing, or to have documentation provided by any of the following or their designates: the Chief Fire Prevention Officer, Chief Building Official, Regional Medical Officer of Health, Waterloo Regional Police Services, and Director of By-law Enforcement. 4.4 For a renewal of a Licence, an Applicant shall submit the following to the Manager of Licensing: a) a renewal Application in the form prescribed by the Manager of Licensing; b) the applicable Application Licence Fee; and c) documents as required by the Regulations of this By-law; and d) any documentation that may be required by the Manager of Licensing with respect to investigations required pursuant to this By-law. 4.5 Every Licensee shall: a) notify the Manager of Licensing within fourteen (14) days of any changes in the ownership of the Licensed Premises; b) shall comply with all applicable federal, provincial or municipal legislation, including, but not limited to, the Building Code Act, as amended, the Fire Code, as amended, and all applicable municipal by-laws, including Noise, Zoning, Parking, and Property Standards, and other applicable law, code or Act, such as the Human Rights Code and Criminal Code of Canada; c) All municipal taxes, licenses, fines, or charges, and building permits for the Licensed Premises must be current and not outstanding before a Licence will be issued; and d) comply with the conditions and restrictions placed on the Licence by the Manager of Licensing or the Licensing Appeal Tribunal. 5. Issuance of Licence and Grounds for Refusal 5.1 The Manager of Licensing shall receive and process all complete Applications for a Licence. 5.2 Upon receipt of a complete Application, the Manager of Licensing shall either issue, renew, or issue with conditions a Licence. Page 40 of 57 5.3 Except where otherwise provided herein, every Licence issued or renewed pursuant to this By-law shall be issued in the name of Council by the Manager of Licensing. 5.4 Where the Manager of Licensing receives an Incomplete Application, the Manager of Licensing shall, notify the Applicant that the Application is incomplete and, where applicable, any steps required to complete the Application. 5.5 The Manager of Licensing will deem an Application to be incomplete where: a) required information has not been provided on the Application form; b) information or documentation required by the Manager of Licensing as part of the Application has not been provided; or c) the full Application Licence Fee is unpaid including any late fee and/or penalty fee. 5.6 Where no action has been made to remedy an Incomplete Application by the Applicant in the time specified by the Manager of Licensing the Application shall be deemed abandoned. The Application will be cancelled, and any associated Application Licence Fee will be deemed non-refundable. 5.7 The Manager of Licensing shall, where an address or other contact information has been provided, notify the Applicant of the intention to refuse an Application and shall advise the Applicant of their right to appeal. 5.8 The Manager of Licensing may refuse an Application where: a) an unsatisfactory report regarding an investigation carried out pursuant to this By-law or any other applicable by-law of the City and any condition causing the report to be unsatisfactory has not been remedied; or b) the past conduct of the Applicant affords the Manager of Licensing reasonable grounds to believe that the Applicant has not or will not carry on their Business in accordance with applicable law or by-laws, or with integrity and honesty; or c) the Property or Dwelling Unit specified on the Application are subject to any Order that has not been complied with made pursuant to the Building Code Act, or the Fire Protection and Prevention Act 1997, S.O. 1997, c.4, or by the Medical Officer of Health; or d) the Licence has been suspended or revoked by the Manager of Licensing or the Licensing Appeal Tribunal. Page 41 of 57 6.Terms of Licence 6.1 A Licence issued pursuant to the provisions of this By-law shall expire one year from the date it was issued or on the expiry date listed on the licence unless it is revoked in accordance with any provisions of this By-law. 6.2 Where a Person sells or transfers ownership of a Short -Term Rental to another Person, the Licence issued shall be void upon transfer. 7. Revocation and Suspension 7.1 The Manager of Licensing shall, where an address or other contact information has been provided, notify the Licensee of the intention to revoke or suspend a Licence and shall advise the Licensee of their right to appeal. 7.2 The Manager of Licensing may revoke or suspend a Licence where: a) the Manager of Licensing is of the opinion that the Licensed Premises poses a threat to the health and safety of the public or Guests; b) the Licence was issued in error; c) the Licensee has violated any of the provisions of this By-law or any other applicable laws; d) any conditions placed on the Licence have been violated; e) the Licence was issued upon provision or receipt of false or misleading information. 7.3 If appealed, Guests residing in the Licensed Premises may continue to reside in the premises until a final decision has been rendered by the Licensing Appeal Tribunal, unless an order or other directive is issued under any other legislation or by a court of competent jurisdiction which orders or directs the removal or departure of the Guests prior to the Licencing Appeal Tribunal issuing a decision. 8. Appeal 8.1 All appeals shall be submitted in writing to the Manager of Licensing within 14 days from the notification issued by the Manager of Licensing. 8.2 The Licensing Appeal Tribunal is adjudicated by a committee designated by Council. 8.3 The decision of the Licensing Appeal Tribunal is final and binding. Page 42 of 57 8.4 If the Manager of Licensing refuses a Licence, the Applicant shall have the right to appeal the decision to the Licensing Appeal Tribunal. 8.5 The Manager of Licensing may refer an Application or a Licence to the Licensing Appeal Tribunal where: a) the Applicant or Licensee does not meet the requirements of this By-law or any other applicable law or by-law; b) there are reasonable grounds for belief that an Application or other documents provided to the Manager of Licensing by or on behalf of an Applicant or Licensee contains a false statement or provides false information; c) the past or present conduct of any person, including the officers, directors, employees or agents of a corporation, affords reasonable cause to believe the Person will not carry on or engage their Short -Term Rental in accordance with the law, or with honesty and integrity; d) any Licensee has contravened this By-law or any other by-law or federal or provincial statue or regulations while engaged in operating a Short -Term Rental; e) any special conditions placed by the Manager of Licensing or Licensing Appeal Tribunal on a former or current Licence of the Applicant or Licensee under this By-law have not been met; or f) the provisions of this By-law provide grounds not to issue or renew. 8.6 When any matter has been referred or appealed to the Licensing Appeal Tribunal the Applicant or Licensee shall be given reasonable notice of the time and place of the hearing and shall be invited to make a submission either in writing or verbally. 8.7 When any matter has been referred or appealed to the Licensing Appeal Tribunal, after due consideration of the Application or Licence and after the Licensing Appeal Tribunal has heard such representations as the Applicant or Licensee and staff may care to make, may direct that the Licence be issued or renewed, or may refuse, suspend, revoke, or add conditions to a Licence where: a) the Applicant or Licensee does not meet the requirements of this By-law or any other applicable law or by-law; b) information or documentation required by the Manager of Licensing as part of the application process has not been provided; Page 43 of 57 c) the Application is incomplete or the Application Licence Fee is unpaid including any late and/or penalty fee; d) the Manager of Licensing received an unfavourable report regarding an investigation carried out pursuant this By-law or any other by-law of the City; e) there are reasonable grounds for belief that an Application or other document provided to the Manager of Licensing by or on behalf of an Applicant or Licensee contain a false statement or provides false information; f) the past or present conduct of any Person, including the officers, directors, employees or agents of a corporation, affords reasonable cause to believe the Person will not carry on or engage in the operation of a Short -Term Rental in accordance with the law or with honesty and integrity; g) without limiting the generality of section 8.5 (f), any Person, including the officers, directors, employees or agent of a corporation, has contravened this By-law or any other by-law of the City or federal or provincial statue or regulation while engaged in the operation of a Short -Term Rental; h) any special conditions placed by the Manager of Licensing, on a former or current Licence of the Applicant or Licensee under this By-law have not been met; i) the provisions of this By-law provide grounds not to issue or renew in the circumstances; or j) the Applicant or Licensee has consented to the refusal, suspension, revocation, or adding of conditions to the Licence. 8.8 No Person shall violate any conditions that the Manager of Licensing or the Licensing Appeal Tribunal has placed on a Licence issued under this By-law. 8.9 For the purpose of section 8.6, the Person's last known address and email address shall be deemed to be those provided pursuant to section 4.1 of this By-law unless notice in writing has been given to the Manager of Licensing providing new information in which case the most recently provided information shall be deemed correct for the purpose of providing notice hereunder. 9. Inspections 9.1 Any Officer authorized by the Manager of Licensing may enter onto Premises at all reasonable times and in accordance with any applicable requirements in the Municipal Act to inspect any Premises used for the carrying on of any Business in respect of which a person is required to be licensed under this By-law. Page 44 of 57 9.2 No person shall obstruct or hinder or cause to be obstructed or hindered any Officer or Officers designated under this By-law to perform their duties. 9.3 An inspection may be conducted by an Officer to determine whether or not the following are being complied with: a) any by-law of the city under the Municipal Act including this By-law; b) a direction or order of the City made under the Municipal Actor made under a by-law of the municipality passed under the Municipal Act; c) a condition of a Licence issued under a by-law of the municipality passed under the Municipal Act; or d) an order made under the Municipal Act. 9.4 For the purpose of an inspection of any Premises to which any provision of this By-law applies, an Officer may: a) require the production for inspection of documents or items relevant to the inspection in a timeframe prescribed by the Manager of Licensing; b) inspect documents or items relevant to the inspection; c) require information from any person concerning a matter related to the inspection; and d) alone or in conjunction with a person possessing special or expert knowledge, make examination or take tests, samples, or photographs necessary for the purpose of the inspection. 10. Orders 10.1 Where the Manager of Licensing has reasonable grounds to believe that a contravention of this By-law has occurred, the Manager of Licensing may make an Order requiring the Person who contravened this By-law, or who caused or permitted the contravention, or the Owner or Licensee, of the land on which the contravention occurred, to do work to correct the contravention. 10.2 An Order under section 10.1. of this By-law shall set out: a) reasonable particulars of the contravention adequate to identify the contravention and the location of the land on which the contravention occurred; and Page 45 of 57 b) the work to be done and the date by which the work must be done, or that the activity deemed to discontinue has ceased. 10.3 An Order under section 10.1. of this By-law may require work to be done even though the facts which constitute the contravention of this By-law were present before this By-law came into force. 10.4 No Person shall fail to comply with an Order under section 10.1 of this By-law. 10.5 Any Order pursuant to this By-law shall be given in writing and is effective: a) on the date on which it is delivered to the Person to whom it is addressed; b) on the fifth day after it is sent by registered mail to the Person's last known address; or c) upon the sending by email transmission to the Person's last known email address. 10.6 For the purpose of section 10.5, the Person's last known address and email address shall be deemed to be those provided pursuant to section 4.1 of this By- law unless notice in writing has been given to the Manager of Licensing providing new information in which case the most recently provided information shall be deemed correct for the purpose of providing notice hereunder. 11. Enforcement 11.1 Council hereby authorizes the Waterloo Regional Police Services or any Officer thereof to act as agent for the City, as necessary, for the purpose of enforcing this By-law. 11.2 The Manager of Licensing is hereby charged with the responsibility for the enforcement of this By-law and the City Solicitor, City Clerk/Director of Legislated Services, Director of By-law Enforcement, and any other municipal official are hereby required to render the Manager of Licensing any reasonable assistance in that regard. 12. Offences and Penalties 12.1 Every Person, excluding a corporation, who contravenes any provision of this By-law or an Order made under this By-law and every director or officer of a corporation who concurs in a contravention by the corporation is guilty of an offence and is liable, upon conviction, to a fine not exceeding Twenty -Five Thousand Dollars ($25,000). Page 46 of 57 12.2 Every corporation that contravenes any provision of this By-law or an order made under this By-law is guilty of an offence and is liable, upon conviction, to a fine not exceeding Fifty Thousand Dollars ($50,000). 12.3 Sections 3.2, 4.5, 8.8, 9.2 10.4, and Schedules 4, 5, 6 inclusive of all subsections thereunder, of this By-law are hereby designated as parts of this by-law to which the Administrative Penalty By-law applies. 12.4 Any person who contravenes any Designated Provision of this By-law shall, upon issuance of a penalty notice in accordance with the Administrative Penalty By-law, be liable to pay an administrative penalty and any administrative fees. 13.Collection of unpaid fines 13.1 Pursuant to section 441 of the Municipal Act, if any part of a fine for a contravention of this By-law remains unpaid after the fine becomes due and payable under section 66 of the Provincial Offences Act including any extension of time for payment ordered under that section, the Manager of Licensing may give the Person against who the fine was imposed a written notice specifying the amount of the fine payable and the final date on which it is payable which shall be not less than twenty one (21) days after the date of the notice. 13.2 If the fine remains unpaid after the final date specified in the notice, the fine shall be deemed to be unpaid taxes for the purpose of Section 351 of the Municipal Act. 14. Schedules 14.1 The schedules attached to this By-law shall form part of this By-law. 15. Short Title 15.1 This By-law shall be known as the "Short -Term Rental By-law". 16. Severability 16.1 If a Court of competent jurisdiction should declare any section or part of a section of this By-law to be invalid, such section or part of a section shall not be construed as having persuaded or influenced Council to pass the remainder of this By-law and it is hereby declared that the remainder of this By-law shall be valid and shall remain in full force and effect. 17. Coming into force 17.1 This By-law shall come into force and effect on January 1, 2026. Page 47 of 57 18. Municipal Code 18.1 The Clerk of the City is hereby directed to make this By-law a part of The City of Kitchener Municipal Code by adding it to the concordance and arranging and numbering it as a chapter so as to fit within the scheme of the Code. Page 48 of 57 SCHEDULE 1 SHORT-TERM RENTAL LICENCE CATEGORIES LICENCE CATEGORY REGULATIONS Short -Term Rental - Company Schedule 4 Short -Term Rental - Principal Residence Schedule 5 Short -Term Rental - Commercial Schedule 6 Page 49 of 57 SCHEDULE 2 INSURANCE 1. This schedule shall apply to any Applicant that is required to submit proof of insurance. 2. Upon submitting an Application, the Applicant shall execute the following indemnity to the satisfaction of the City: The Licensee both during and after the term of the Licence or renewed Licence, shall at all times, and at its own cost, expense, and risk, defend, indemnify and hold harmless the City, its elected officials, officers, employees, volunteers, agents, and all respective heirs, administrators, executors, successors, and assigns from any and all losses, damages (including, but not limited to, incidental, indirect, special and consequential damages, or any loss of use, revenue or profit by any Person or Business), fines, penalties and surcharges, liabilities, judgements, claims, demands, causes of action, contracts, suits, actions or other proceedings of any kind and expenses which the indemnified City may suffer or incur, howsoever caused, provided such losses, damages, fines, penalties and surcharges, liabilities, judgments, claims, demands, cause of action, contracts, suits, actions or other proceedings of any kind and expenses as defined above are due or claimed to be due to the negligence, breach of contract, and/or breach of law of the Licensee. 3. The Applicant shall maintain liability insurance acceptable to the Manager of Licensing throughout the term of the Licence if the Licence has been granted. 4. The liability insurance shall consist of a comprehensive policy of public liability and property damage insurance in an amount of not less than $2,000,000.00 per occurrence. 5. The liability insurance shall name The Corporation of the City of Kitchener as additional insured with a cross -liability endorsement and severability of interest provision. Page 50 of 57 SCHEDULE FLOOR PLANS 1. This schedule shall apply to any Applicant that is required to submit Floor Plans. 2. The Floor Plans accepted by the Manager of Licensing shall be drawn to scale on graph paper or digital format and include identifying the following: a) all rooms, spaces or common areas of the Short -Term Rental; b) how each room, space or common area shall be used, which means specifically indicating where all Bedrooms will be located on the Floor Plan; c) the dimensions (in meters) of all rooms, spaces or common areas; d) dimensions of all windows; e) location of all entrances and exits; and f) location of all smoke and carbon monoxide alarms. Page 51 of 57 SCHEDULE 4 SHORT TERM RENTAL - COMPANY 1. In addition to the licensing requirements set out in section 4 of the By-law; an Applicant for a Short -Term Rental - Company Licence shall supply the following: a) The company's registered Business address in Canada; b) The name, title or position, telephone number, and email address of a person responsible for responding to all communications from the City; c) The website or app through which the applicant brokers or facilitates reservations for Short -Term Rentals; and d) Any other information or documents as required by the Manager of Licensing. 3. Every Short -Term Rental - Company Licensee shall: a) Provide in a conspicuous place a field on the platform/website to allow a Licensee to input their Licence number; b) Provide on a quarterly basis or upon request, a list of Short -Term Rentals active on their platform(s), including the operator ID, listing URL, and corresponding Business Licence number; c) Upon request remove listings that the City has deemed to be not in compliance with by-law regulations; and d) Keep a record of each concluded transaction in relation to a Short -Term Rental listed or advertised on its platform for three (3) years following the last day of the rental period. A transaction is concluded on the last day of the rental period. The records retained shall include the following: i) the name, address, and Licence number of the Short -Term Rental; ii) the number of nights the Short -Term Rental was rented; iii) the nightly and total price charged for the Short -Term Rental; iv) Whether the rental was an entire -unit rental or room rental; and v) Any other information required by the Manager of Licensing. Page 52 of 57 SCHEDULE 5 SHORT-TERM RENTAL - PRINCIPAL RESIDENCE 1. In addition to the licensing requirements set out in section 4 of the By-law; an Applicant for a Short -Term Rental — Principal Residence Licence shall supply the following: a) Proof of ownership; b) If the Applicant is the lessee of the Property or if the Property is a condominium unit, written consent from the Property owner and/or the condo board; c) Proof of Principal Residence in the form of at least 2 of the following: i) a copy of the Applicant's driver's licence or government -issued photo identification card; ii) a copy of the Applicant's most recent tax return; iii) a copy of the Applicant's most recent property tax bill; or iv) a copy of the Applicant's lease agreement. d) Proof of Insurance; e) Floor Plans; f) The number of Bedrooms available for rent; g) Guest Handbook; and h) a current list of all platforms in which the Short -Term Rental is listed, advertised, solicited, other otherwise held out for rent. 2. The Application for a Short -Term Rental - Principal Residence are subject to the following approvals: a) Fire Approval; and b) Planning Approval. Page 53 of 57 3. Every Short -Term Rental - Principal Residence Licensee shall: a) post the Licence in a conspicuous place at the Licensed Premises; b) have a Dedicated Responsible Person who is responsible for managing or addressing issues in relation to the Licensed Premises and is available to attend at all times within a period no greater than one hour for emergency issues, and within three hours of non -emergency issues, and shall be responsible for the day-to-day operations of the Short -Term Rental; c) create and display at the Licensed Premises a Guest Handbook; d) ensure the number of cars parked on the property do not exceed the number of parking spaces which can be legally provided in accordance with the Zoning By- law; e) ensure that each bedroom complies with the Building Code Act and any regulations thereto with regards to access to natural light and window requirements; f) ensure that each Bedroom has no more than 2 Adult occupants; g) not hold more than one Short -Term Rental - Principal Residence Licence. Page 54 of 57 SCHEDULE 6 SHORT-TERM RENTAL - COMMERCIAL 1. In addition to the licensing requirements set out in section 4 of the By-law; an Applicant for a Short -Term Rental - Commercial Licence shall supply the following: a) Proof of ownership; b) If the Applicant is not an owner of the property or if the property is a condominium unit, written consent from the property owner and/or the condo board; c) Proof of Insurance; d) Floor Plans; e) The number of Bedrooms available for rent; f) Guest Handbook; and g) a current list of all platforms in which the Short -Term Rental is listed, advertised, solicited, other otherwise held out for rent. 2. The Application for a Short-term Rental - Commercial are subject to the following approvals: a) Fire Approval; and b) Planning Approval. 3. Every Short -Term Rental - Commercial Licensee shall: a) post the Licence in a conspicuous place at the Licensed Premises; b) have a Dedicated Responsible Person who is responsible for managing or addressing issues in relation to the Licensed Premises and is available to attend at all times within a period no greater than one hour for emergency issues, and within three hours of non -emergency issues, and shall be responsible for the day- to-day operations of the Short -Term Rental; c) create and display at the Licensed Premises a Guest Handbook; d) ensure the number of cars parked on the property do not exceed the number of parking spaces which can be legally provided in accordance with the Zoning By- law; Page 55 of 57 e) ensure that each bedroom complies with the Building Code Act and any regulations thereto with regards to access to natural light and window requirements; f) ensure that each Bedroom has no more than 2 Adult occupants; g) hold a separate Licence for each Short -Term Rental. Page 56 of 57 `APPENDIX B' SHORT-TERM RENTAL LICENSING FEES: LICENCE TYPE: ANNUAL FEE: SHORT-TERM RENTAL - COMPANY $5,000 SHORT-TERM RENTAL — PRINCIPAL RESIDENCE $300 SHORT-TERM RENTAL - COMMERCIAL $500 Page 57 of 57