Property
Property
Magnetawan Short Term Rentals – New By-Laws
The village of Magnetawan has recently implemented comprehensive by-laws addressing the increasingly popular trend of short-term rentals, marking a pivotal moment in the ongoing debate within our tight-knit community. With a commitment to maintaining a harmonious balance, the local council has engaged in extensive dialogues with residents to arrive at these regulations, applicable not only to residential properties but with a particular focus on waterfront cottages.
In this article, we delve into the historical backdrop of the issue, examining the evolving landscape of short-term rentals in Magnetawan and the measures enacted to curtail them.
Background
It's essential to recognize that this isn't just a Magnetawan challenge; neighboring municipalities in Ontario, such as Parry Sound and Muskoka, also grapple with similar concerns. The surge in the popularity of cottage rentals in recent years has had a profound impact on our community. We've witnessed firsthand how prospective real estate buyers would scrutinize rental potential in the area while simultaneously intending to use the cottage for personal enjoyment. For many, the idea of generating rental income became an integral part of their property investment strategy.
However, as time passed, a shift occurred, transforming rentals from a mere supplement to a full-fledged business endeavor. This transformation set the stage for a clash of interests, pitting neighbor against neighbor. It's important to emphasize that the majority of property owners were responsible stewards, diligently screening potential renters to ensure minimal disruption to our serene lakeside environment. Nevertheless, as is often the case, it takes only a few individuals with less responsible intentions to mar the collective experience.
What is a S.T.R.?
There are various definitions of short term rentals throughout Ontario, usually very similar but this is what Magnetawan uses:
"Short-term Accommodation" (STA) means the commercial use of a residential Dwelling Unit that offers a place of accommodation or temporary residence, or occupancy by way of concession, permit, lease, licence, rental agreement or similar arrangement whether written or verbal for no fewer than twenty-eight (28) consecutive calendar days throughout all or part of the year. Short-term Accommodation uses shall not mean a motel, hotel, bed and breakfast establishment, tourist establishment, tourist cabin establishment, or similar commercial accommodation use.
Overcrowded cottages and disruptive late-night gatherings became increasingly common, leaving the local township with no choice but to intervene. The challenge at hand, of course, is striking that delicate balance between the right to generate rental income and ensuring the peaceful coexistence of neighboring cottage owners, allowing all to enjoy their properties to the fullest.
Magnetawan's new short-term rental regulations aim to achieve this equilibrium, preserving the quiet enjoyment in our community while still accommodating those who wish to share our area with short-term renters. In the following sections, we will explore the specifics of these regulations and how they impact property owners and potential renters alike.
The Rules in a Nutshell
Licences will be issued to complete applications on a first come first serve basis during the inaugural year.
- A total of licences 170 will be issued annually and no new licences will be issued until the number of licences falls below 170.
- Short-term Accommodation properties renting for less than three (3), one (1) week rentals within a calendar year are exempted from the requirement to obtain a licence.
- A certificate of insurance which includes a liability limit of no less than five million dollars ($5,000,000) per occurrence for Property damage or bodily injury. Such insurance policy shall identify that a Short-term Accommodation is being operated on the Property and name the Municipality of Magnetawan as an additional insured on their general liability. The insurance coverage required herein shall be endorsed to the effect that the Municipality shall be given at least thirty (30) days' notice in writing of any cancellation or material variation to the policy; OR a certificate of insurance which includes a liability limit of no less than two million dollars ($2,000,000) per occurrence for Property damage or bodily injury. Such insurance policy shall identify that a Short-term Accommodation is being operated on the Property. The insurance coverage required herein shall be endorsed to the effect that the Municipality shall be given at least thirty (30) days' notice in writing of any cancellation or material variation to the policy.
Where applicable, confirmation of inspection or certification as required for the following:
- i. An Electrical Systems Safety Assessment certificate;
- ii. Where there are wood burning appliances, a Wood Energy Technical Transfer (WETT) report dated no less than 5 years old issued by a certified WETT inspector;
- iii. An annual inspection report, indicating that the chimney, flue pipes etc. have been inspected by a WETT certified chimney sweep and are safe to be utilized;
- iv. An HVAC inspection report issued by an HVAC Technician. An updated report shall be required each year, and;
- v. At time of renewal: maintenance and records of tests for all smoke and carbon monoxide alarms along with the guest log/register.
A demerit system has been implemented which allows up to 15 points before a licence can be revoked. If the total number of Demerit Points in effect respecting a Short-term Accommodation is seven or more but fewer than fifteen, the Owner is required to provide to the satisfaction of the Officer written confirmation of the measures to be implemented by the Owner to avoid the imposition of further Demerit Points.
DEMERIT POINTS
(Check with Magnetawan Town Office for complete list and accuracy)
- Operating STA for Commercial activities 7
- Failure to respond to concern within thirty (30) minutes 4
- Failure to attend Premises within sixty (60) minutes 4
- Failure to provide Waste Diversion Education 4
- Operate, use, advertise or permit a Short-term Accommodation in contravention of 4.1 a) to g) inclusive 7
- Failure to produce a copy of the signed licence or attestation 4
- Failure to create and/or produce and/or post an approved Fire Safety Plan for an STA with an occupancy of 10 renters/guests 7
- Number of renters\renters on Premises contrary to Licence 4
- Offering a STA Accommodation for less than a seven day consecutive rental 4
- Contravention of Section 7 – Requirements 7
- Failure to advise renters and guests how to access emergency services that may not be provided due to private/unmaintained and/or water access 7 6.1 k) iv Parking contrary to approved Licence 4
- Failure to notify of Licence changes within seven days
- Failure to post required documentation 4
- Failure to provide fire extinguisher as required 4
- Confirmed Municipal by-law contravention of any by-law or this bylaw 7
- Confirmed Fire Protection and Prevention Act, 1997, S.O. 1997, c. 4 contravention 7
- Confirmed Ontario Building Code Act 1992, S.O. 1992, c.23 contravention 7
- Contravention of an Order under any Act or this By-law 5
- Removal of STA posted Order that is not under either the Building Code Act 1992, S.O. 1992, c.23 or the Fire Protection and Prevention Act, 1997, S.O. 1997, c. 4, without consent 7
- Hinder/Obstruct an Officer while on duty 7
Fines for non-compliance
- Operating STA for Commercial activities $5000
- Failure to respond to concern within thirty (30) minutes $1500
- Failure to attend Premises within sixty (60) minutes $1500 3.7
- Failure to provide Waste Diversion Education $1500
- Operating STA without a Licence $5000
- Operate, use, advertise or permit a Short-term Accommodation in contravention of 4.1 a) to g) inclusive $5000
- Failure to produce a copy of the signed licence or attestation $2500
- Failure to create and/or produce and/or post an approved Fire Safety Plan for an STA with an occupancy of 10 renters/guests $5000
- Number of guests/renters on Premises contrary to Licence $2500
- Offering a STA Accommodation for less than a seven (7) day consecutive rental $2500
- Contravention of Section 7 – Requirements $5000
- Failure to advise renters and guests how to access emergency services that may not be provided due to private/unmaintained and/or water access $5000
- Parking contrary to approved Licence $5000
- Failure to notify of Licence changes within seven (7) days $1500
- Failure to post required documentation $5000
- Failure to provide fire extinguisher as required $5000
- Confirmed Municipal by-law contravention of any by-law or this by-law $5000
- Confirmed Fire Protection and Prevention Act, 1997, S.O. 1997, c. 4 contravention As Per The Act 8.2 viii Confirmed Ontario Building Code Act 1992, S.O. 1992, c.23 contravention As Per The Act 9.1 Contravention of an Order under any Act or this By-law $2500
- Removal of STA posted order that is not under either the Building Code Act 1992, S.O. 1992, c.23 or the Fire Protection and Prevention Act, 1997, S.O. 1997, c. 4, without consent $5000
- Hinder/Obstruct an Officer while on duty $5000
