Maintaining the status quo (i.e. no regulation) would risk exacerbating these concerns, which could negatively impact the rental housing supply and destabilize residential neighbourhoods. Some level of regulation is also required to ensure basic safety of STR rentals. Overregulation poses a risk of stifling the STR industry, which may negatively impact tourism and income for hosts. A complicated regulatory system may also discourage compliance with STR rules.

Restricting the ability to rent dedicated STRs may jeopardize investments already made in these dwellings (Sarnia grandfathers these investments made before STRs rules came into effect). It is assumed that dedicated STRs would be added to the long-term rental housing supply if they are prohibited from renting on a short-term basis.

Financial Matters:

It should be noted that in Windsor the largest STR platform, airbnb, is paying the municipal accommodation tax commensurate with the amounts paid by hotels in the city. They have been open to working with the City and prove to be generally amicable with municipal regulatory and taxation practices.

Other financial matters to consider involve the cost of licensing and enforcement resources, both staff and other, should council direct administration to create a regulatory regime using options 1-8 as outlined above. As noted, the financial impact of these options vary from the $10,000 range to upwards of $100,000 based on the options chosen. These costs include, but are not limited to, the hiring of new staff members required to complete regulatory requirements, existing staff time being diverted to other duties, inspections and other various administrative costs.

Consultations:

Policy, Gaming, Licencing and Bylaw Enforcement

Planning

Finance

Legal

Building

Fire

Conclusion:

There are many options for the creation of a STR regulatory regime. Administration recommends a framework that strikes a balance between concerns addressed through public consultation and allowing STRs to be established in all residential areas throughout the City. Should Council endorse the recommended regulatory framework and/or provides further direction regarding regulation of STRs, Administration will