London looks to give its short-term accommodation rules more teeth

London looks to give its short-term accommodation rules more teeth

Homeowners who offer short-term rentals on websites like Airbnb and Vrbo could soon pay more for a municipal license and face higher fines if they violate the by-law.

On Monday, the Community and Protective Services (CAPS) Committee held a public participation meeting about potential changes to London’s Short Term Accommodation (STA) License.

London has required STAs to have a municipal license since 2022.

However, according to a staff report changes are required to strengthen enforcement, improve cost recovery, and reduce impacts on surrounding neighbourhoods.

Specifically, a report recommends limiting occupancy to two individuals per sleeping room, restricting STA providers to one property and one license, increasing the license fee to more closely reflect inspection costs, and hiking financial penalties for unlicensed homeowners and brokerages.

“The current $500 penalty for operating without a licence has not been sufficient to promote compliance, and the $196 licence fee does not reflect inspection costs,” reads the report.

The licensing fee would increase from $196 to $547.

Penalties for unlicensed STA owners would increase from $500 to $1,500 ($2,000 and $5,000 for additional violations).

“People who are operating these legitimately have to understand that some of us may seem judgmental about this industry, (but) there are some very bad players out there,” said Coun. Sam Trosow about the changes.

Online ‘brokerages’ that advertise STAs and oversee bookings and payments must also be licensed.

Failure to obtain a license would result in escalating penalties from $10,000, $15,000, and $20,000.

They would also be restricted to advertising STAs that have a valid license number.

“Those brokers will no longer be able to list those Short-Term Accommodations for short term rental if it isn’t accompanied by a license number,” explained Amanda Pfeffer, Director, Municipal Compliance.

Council will make a final decision March 31.