City of Waterloo limits short-term rentals to principal residences

An open suitcase sits on a desk in this undated stock image. (Craig Adderley/Pexels.com)

Some short-term rentals in the City of Waterloo may have to shut down as city council changes to rules around rental licencing.

Council approved amendments to the Residential Rental Licensing bylaw that will only allow short-term rentals to be run out of an owner’s principal residence in low-rise rental properties.

Short-term rentals include bookings through Airbnb and Vrbo.

The city will be applying for a financial boost from the federal government’s Short-Term Rental Enforcement Fund to make sure the new rules are being followed.

City-wide Impact

During Monday’s council meeting, councillors were told city staff believe approximately 500 short-term rentals are operating within Waterloo, representing somewhere between 2 to 5 per cent of all available rental units within the city.

Staff believe approximately 200 to 250 short-term rentals would be impacted by the new rules and around 100 of those units would likely be converted into long-term rentals or go back into the overall housing market.