Applying for a Short-Term Rental Licence

Under By-Law 43-2022, Short-Term Rentals are required to be licenced to operate an STR in the Municipality of Lambton Shores.

• A “Short-Term Rental” or “STR” means all or part of a legally established Dwelling that operates or offers a place of temporary residence, lodging or occupancy by way of a rental agreement or similar commercial transaction for a period of less than thirty (30) consecutive nights throughout all or any part of a calendar year, but does not include an Owner-occupied Short-Term Rental, motel, hotel, hospital, campground, couch surfing or other short-term accommodations where there is no payment

Owner-Occupied Short-Term Rentals are not required to obtain a licence, which are specifically defined as:

• An “Owner-occupied Short-Term Rental” means a Short-Term Rental being offered in a primary Dwelling where the Owner or Tenant is permanently residing while the Premises is being used or operated as a Short-Term Rental, or a single legal accessory Dwelling on the same property as a primary Dwelling where the owner or Tenant is permanently residing while the Premises is being used or operated as a Short-Term Rental, and includes a Bed and Breakfast Establishment

A Short-Term Rental Licence is valid for one (1) year after the date of which it is issued, unless it is renewed or Revoked in accordance with By-Law 43-2022.

In addition to the fines related to those in contravention of Municipal by-laws, a demerit point system has been established as part of the Short-Term Rental licensing program.

View the demerit point system

Demerit points are issued once a conviction is rendered, or fines are paid, and is not based on complaints to discourage frivolous or vexatious complaints against certain properties. Demerit points could also be applied where there is proof of other offenses occurring (e.g., advertising or operating without a licence, exceeding occupancy, or non-availability of Responsible Person).

Demerit points are assigned to the individual Licence, which will be unique to each individual Short-Term Rental. Demerit points remain in place for two (2) years after the date on which the demerit points were assessed.

A third-party compliance monitoring system will be in place beginning February 1, 2023. The compliance monitoring system will provide services like address identification of STR properties, a 24/7 hotline for STR complaints, and ongoing communication with an STR's Responsible Person to address complaints or issues that arise in relation to their STR.

Short-Term Rental owners must designate a Responsible Person, which means an Agent or representative of an owner or tenant, or the owner themselves, who is responsible for managing or addressing issues in relation to the owner's Short-Term Rental.

The Responsible Person must be available to respond to concerns at the Short-Term Rental at all times, either in person or by telephone, within a period of no greater than thirty (30) minutes from the time of contact by the Municipality or Municipal Agent (third-party monitoring system). Failure to do so may result in By-Law Enforcement responding and issuing tickets for by-law violations.

The maximum occupancy permitted for all Short-Term Rentals is determined by reference to the number of Bedrooms in the Short-Term Rental.

The maximum occupancy shall not exceed two (2) Persons per Bedroom, plus a total of two (2) Persons, to a maximum of ten (10) Persons per Short-Term Rental. Children who are aged 12 and under at the time of the rental shall not be included in the occupancy calculation.

Example: a Short-Term Rental with three legal bedrooms can have a maximum occupancy of 8 Persons (not including children ages 12 and under)

Short-Term Rental owners must provide a Parking Management Plan with their Licence application and comply with the following regulations:

Minimum parking requirements for a Short-Term Rental:

• One (1) space when the Short-Term Rental is occupied by one (1) to four (4) Renters;
• Two (2) spaces when the Short-Term Rental is occupied by five (5) to ten (10) Renters

Parking Space Specifications:

• Parking spaces must be a minimum of 2.7 m by 5.5 m per space
• The parking surfacing must be asphalt, gravel, concrete, or another similar hard surface and cannot be grass or other landscaped space.

The parking spaces may be provided on the Short-Term Rental Premises or alternatively off-Premises on a site within 1,000 m of the Short-Term Rental, or to the satisfaction of the Municipality.

Short-Term Rental owners must provide a Plan for Fire Safety as part of the Licence application. This plan includes a layout of the interior of the Short-Term Rental with locations of all smoke alarms, carbon monoxide alarms, fire extinguishers, and exits.

The Plan for Fire Safety must be displayed in a prominent place in the Short-Term Rental.

If the Dwelling is on a septic system, Applicants must include proof of septic maintenance, inspections, and/or pump-out servicing within the last three years.

All Short-Term Rentals must be kept in a clean and sanitary condition with adequate measures for the storage and disposal of garbage and waste. Adequate measures for the storage and disposal of waste can include a self-enclosed building, structure, or container that is located outside of the Short-Term Rental, which is of a sufficient size to store the garbage and waste generated by the Premises.

Garbage and recycling bins are to be placed at the road no earlier than 5:00 p.m. on the evening before collection.

Annual Licensing Fee

An annual licensing fee is required as part of the Short-Term Rental Licensing Program. The payment of the licensing fee is required upon the approval of a short-term rental licensing application. A Short-Term Rental Licence will not be issued before the licensing fee is received by the Municipality.

The 2023 Licensing Fee is $500 per short-term rental accommodation.

Are there resources, templates, or samples available for some of the application documents?

There are several resources, templates and sample documents are available to support you with the application process:

• Application Checklist
• Short-Term Rental Licensing Application Guide
• Owner Authorization Form (if the Applicant is not the Owner)
• Sample Plan for Fire Safety
• Sample Site Plan
• Sample Parking Management Plan

Additional resources:

• By-Law Infographic

When was the Licensing program implemented?

Council passed By-Law 43-2022 on June 7, 2022. The Licensing program took effect February 1, 2023.

You must submit and obtain a Short-Term Rental Licence before advertising or operating a short-term rental.

Individuals advertising and/or operating a Short-Term Rental without a Licence may be issued a $900 fine for Market/Operate/Permit to Operate a Short-Term Rental without a Licence.

There are several other fines hosts may face should they operate a Short-Term Rental in contravention of the Short-Term Rental Licensing By-Law: View Set Fines

Offence and penalty provisions are outlined in Section 15 of By-Law 43-2022, which states:

15.1 Every person who contravenes any provision of this by-law is guilty of an offence and upon conviction is liable to a fine as provided for by the Provincial Offences Act, R.S.O. 1990, Chapter P. 33, as amended

15.2 Pursuant to section 447 of the Municipal Act, 2001 where an Owner is convicted of knowingly carrying on or engaging in a business in respect of any Premises or part of any premises without a Short-Term Rental Licence, or a Person is convicted of any other contravention of this by-law and the court determines that the Owner of the Premises or part of the Premises in respect of which the conviction was made know or ought to have known of the conduct which formed the subject-matter of the conviction or any pattern of similar conduct, the court may order that the Premises or part of the Premises be closed to any use for a period not exceeding two years.

15.3 In addition to any other remedy, it may have at law, the Municipality shall be entitled to enforce this by-law in accordance with Section 442 and 446 of the Municipal Act, 2001, as amended.

The Responsible Person(s) must be available at all times when the Short-Term Rental is being used.  If they are contacted because of an issue, they have 30 minutes to make contact with those renting the accommodation to resolve the situation. This can be texting, calling, or visiting the Premises.

This process is intended to provide the Short-Term Rental owner and/or Responsible Person an opportunity to resolve the issue before escalating to By-Law Enforcement.

If the issue cannot be resolved by the Responsible Person, By-Law Enforcement will be notified.

Yes, you can provide multiple contacts for a Short-Term Rental's Responsible Person. It is recommended that each Short-Term Rental have at least two people listed (the owner and another individual).

A Responsible Person could also be a property manager or family member who lives nearby.

In February 2021, Council directed staff to develop a consultation process in order to identify issues which could be addressed by a short-term rental regulatory program. An extensive public consultation process began with a public survey to gather input, perspectives, and experiences related to short-term rental accommodations in Lambton Shores.

The consultation process then focused on stakeholder workshop discussions, which included short-term rental operators, local business owners, neighbourhood groups, motel operators, and emergency services.

Learn more about the consultation process