New Rules Killing Ontario Cottage Rentals? What Owners Must Know

Some Ontario cottage rental owners in Ontario are taking their properties off rental sites like Airbnb. New licensing rules for short-term rentals are popping up in towns across cottage country, and for many, the extra cost and paperwork are not worth the trouble.

Gabriel Leclerc, who owns two family cottages in Calabogie, is one of them. After the township introduced new licensing regulations in 2024, he decided to stop renting. He says the process was intrusive and the rules were excessive. His family now plans to sell both properties.

“That extra work and burden of licensing just doesn’t make it worth it anymore,” he explains.

How Do These New Rules Work?

Across Ontario, individual municipalities are deciding how to handle short-term rentals. Many are now requiring owners to get a license if they rent out their property for fewer than 28 consecutive days.

In Greater Madawaska, which includes the Calabogie area, the license costs $300 a year. To get it, homeowners must provide documents like a map of their septic system and a property layout. The township states these bylaws help ensure safety standards and maintain the community’s character by managing fire codes, occupancy limits, and noise levels.

Other areas, like Prince Edward County and Haliburton County, have similar policies in place. Some officials also point to the provincial housing crisis as a reason to manage the number of vacation rentals.

“Not Worth Renting Anymore”

For occasional renters, the new requirements can be a deal-breaker. Kelly Percival-Green owns a cottage near Calabogie Peaks Resort. Her family uses it as a ski cabin in the winter and used to rent it out for a few weeks in the summer to help with maintenance costs.

Because of the new rules, she has stopped renting. Since she lives two hours away, she would need to hire someone to be on-call locally to handle emergencies and check detectors after every stay.

“It just became so that it was not worth renting anymore,” Percival-Green says. “It was very helpful to be able to rent it and see the bills partially paid. Now we’re just paying the bills and we’re cringing a little bit because it hurts financially.”

What’s your take on this? Are these rules fair for small-time renters, or are they creating too much of a burden? Share your thoughts in the comments.

Creating a “Level Playing Field”

Not everyone is against the new regulations. Meghan James, the general manager of the Somewhere Inn in Calabogie, supports them. Her boutique motel already pays for business licenses and registrations. She believes it’s fair for other short-term rentals (STRs) to do the same.

“If you’re running your home or your second home or cottage as a business… you should budget in those licensing fees,” James says. She also highlights the importance of safety, noting that guests deserve to know that fire alarms are working and water is tested.

Rules Vary Widely Across Regions

One of the main frustrations is the lack of consistency. J.T. Lowes, owner of All Season Cottage Rentals in Haliburton County, points out that rules and fees are different from one town to the next. A license in Minden Hills is about $500, while a permit in Ottawa is around $116 for two years.

He says this inconsistency mainly affects owners who only rent for a few weeks a year. For larger investment owners, it’s just another business expense. Lowes worries this is pushing rentals into an underground market. He also believes the regulations are harming local tourism, stating he has lost half his business and had to lay off staff since the rules were enacted in his area.

Minden Hills Councillor Pam Sayne acknowledges that the bylaws are new and will take time to adjust. She says municipalities are trying to balance supporting tourism jobs with the need for local housing. She also suggests that provincial oversight could help streamline the process for every town.

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