Safety and compliance: Central Elgin to implement short-term rental licensing program

Short-term rental licensing program might be coming to Central Elgin. CTV London's Brent Lale reports.

As Port Stanley, Ont. grows, so does its tourism industry.

“Five-six years ago, there were 75 maybe 100 places within the village that were available for short term accommodation as opposed to long term, and now literally it’s 1,000,” said Kim Saunders, president of the Port Stanley BIA and owner of the Windjammer Inn.

Seeking a mix of rental options, and to join many other tourist destinations in the region, the Municipality of Central Elgin (CE) is looking to implement a licensing program for short-term rentals (STR).

“It will be a licensing program guided by the principles of revenue neutrality and safety being the real focus and intent,” said Delany Leitch, Central Elgin deputy clerk. “It’s all about the safety piece. There are so many elements, from fire to building to parking, especially in Port Stanley, that we would like to consider.”

This week, Central Elgin staff met with many stakeholders and community partners.

“When I first went to the meeting, I wasn’t so sure about the bringing in the licensing,” said realtor Jeff West, who owns multiple STR in Port Stanley. “But there were some really good points made on primarily safety, for people that that are renting and for landlords to make sure that their properties are kept safe. I also liked the Port Stanley Visitor Centre being able to have a log of short-term rentals that are licensed in the city for people when they call and they need a place to stay.”

West owns a few STR’s in the village. He agrees that landlords need to make sure they have working fire alarms, and escape plans for people renting.

“My hope is that the municipality is not going to get overly strict with some of the rules and regulations,” said West.

He also worries about a potential cap on the number of STR’s because tourists bring a lot of business to the village.

“My tenants that are here on a weekly basis in the summertime, basically eat dinner out every single night,” said West.

“They support the local businesses. If they were to shut down short term rentals completely in Port Stanley, it would be very problematic, especially along William Street, Bessie Street, Maud Street, where there are a lot of properties that are not suited for long term tenants to live in. They may not be heated properly, not insulated properly, and that would be a problem. We’d end up with a lot of vacant properties.”

With recent battles over landlord and renters' rights, many property owners don’t want long-term tenants.

The BIA believes whatever licensing system is implemented, needs to be fair and balanced to support tourists, landlords, and businesses both in summer and during the off-season.

“As a traditional commercial operator in the village, I have to provide parking, I have increased insurance premiums, inspections, fire inspections, and health safety inspections,” said Saunders. “I don’t necessarily think that all short-term rentals have to undergo the same regulations as full commercial establishments, but as long as it’s reasonable and balanced, I think we can come up with something that everyone can live with.”

Central Elgin has had conversations with several municipalities of larger and similar size to get insight on how they handle STR.

Based on preliminary research, they are looking at challenges such as occupancy limits, sewage capacity, parking spaces, smoke and carbon monoxide alarms, garbage disposal, and insurance. They could also implement a demerit point system for non-compliance, a renter’s code of conduct and require third-party monitoring.

CE is also looking for feedback before coming before council. They have a survey online and will be holding community open houses Tuesday, March 25 in Belmont, Ont. and Wednesday, March 26 in Port Stanley.

Across the municipality, there are many reasons for STRs. Whether it is for those on vacation, visiting for a short time with a group too large for a hotel, or working in the area.

“It really does need to be informed by the community,” said Leitch. “Stakeholders, neighbours and by people who live and work in and around short-term rentals. We are seeking as much feedback from the public as we can because there is a lot of different contexts and considerations there for us.”