When you have a rental property, you basically have two ways to go regarding generating income. You can rent out your property on an annual basis or treat it as a short-term accommodation. There are advantages involved with both, but also drawbacks, so it is important to fully understand what is involved. One thing you’ll need to consider is the short-term accommodation by-laws in Collingwood & The Blue Mountains area.
Short-Term Accommodation By-Laws for Collingwood
To offer short-term accommodations (a period of less than 30 consecutive calendar days) in Collingwood, your rental property must be approved as a B&B (bed and breakfast) or have been initially constructed as accessory apartments. To be an allowed B&B, you must also live in the dwelling, have no more than 3 guest rooms, offer at least one parking space per guest room, have municipal utility services, and meet a few other criteria, as well.
Short-Term Accommodation By-Laws for The Blue Mountains
Before you can offer rental periods of less than 30 days, you will need to apply for a license. The initial cost for this license is $2,000. There is a $750 bi-annual renewal rate. There are many requirements in place for being granted the license, including an inspection for electrical safety and fire safety. Certain low-density residential areas do not qualify. However, condos in a commercial resort do not require the STA (short term accommodation) license under certain circumstances. There are also some complex conditions for attached and detached accessory apartments. For example, if you’re a property manager managing 10 or more units between one or multiple buildings, you may not require it. Bed and breakfasts have their own set of rules.
Given that the short-term accommodation by-laws are complex in various areas of Ontario, it can prove beneficial to reach out to an experienced property management company for assistance. At Property Valet, we can help you determine if your rental property qualifies and what steps are to be taken if you are looking to have rental periods of less than 30 days. We can help you with short-term rental property management, condo management, Airbnb management, and more. Reach out today to get started.