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Saturday, June 14, 2025
Residents debate more restrictions on vacation rentals in town
Maple Tree Cottages is one of hundreds of licensed shortterm rentals in Niagara-on-the-Lake. Input on changing the existing bylaw relating to short-term rental properties was one of the main topics of debate at Tuesday’s council meeting, receiving mixed opinions. DANIEL SMEENK

With debate around Niagara-on-the-Lake’s vacation rental industry showing no signs of cooling down, the town is going to take a closer look at the rules around short-term rentals — including a potential cap on how many rentals should be allowed to operate.

Council passed a motion during its Tuesday meeting to consult with stakeholders over density limits and cottage rental numbers, after a lengthy conversation about the state of the short-term rental industry in town and its impacts, both good and bad.

Short-term housing rentals were a major topic during the May 27 meeting, with the town taking feedback from seven members of the public about how to update an existing rentals bylaw.

“We heard some very interesting things tonight from the delegates,” said Coun. Gary Burroughs.

Back in December, council asked staff to write a report about the issue of short-term rentals and the state of the local industry since the municipality passed its major short-term rental bylaw in 2021.

The bylaw gives the Town of Niagara-on-the-Lake the authority to issue a fixed number of licences to operators of short-term rental properties, which include cottage homes, villas, bed and breakfasts, vacation apartments and country inns.

The number of licences the town should issue was a key subject of debate during the meeting, namely the number of acceptable licences to give to cottages and villas.

Visitors who rent these places have access to an entire single-detached home during their stay.

The key number to remember here is 231: That is the number of licences the town issues to cottage and villa short-term rentals. They are often listed on websites like Airbnb and VRBO.

The number of cottage and villa homes has been capped by the town because of noise and other disturbance complaints from neighbours.

Those who support the short-term rental industry argue they offer a convenient and comfortable way for tourists to stay in NOTL and boost the local economy.

“I strongly oppose an outright ban,” said Erica Lepp, owner of Rentals Niagara. “Short-term rentals are essential, affordable alternatives to hotels.”

“I understand there were issues with noise in the past, but this is an overreaction. 231 is more than enough.”

Currently, there’s a moratorium on licences given to short-term rentals, particularly cottage rentals, country inns, vacation apartments and villas, which started on Dec. 10. Those who had one before the moratorium can renew their licences, but the town isn’t issuing any new ones.

Five options for the future of the short-term rental bylaw were presented in the report discussed in council on Tuesdays, ranging from an outright ban of cottage and villa short-term rentals to a variety of compromises, including capping just cottage and villa properties and capping all kinds of short-term rentals.

Norm Arsenault, former NOTL councillor, shared that he’s displeased by the negative effect that cottage and villa short-term rentals have had in Niagara-on-the-Lake.

“Cottage rentals and villas have taken over what was once quaint neighbourhoods,” said Arsenault.

“Residents have strangers rotating through their neighbourhoods … We need to bring life back to taxpaying residents.”

Arsenault also noted that other municipalities in Niagara have restricted short-term rentals.

However, Jason Clements, a local real estate agent with Royal LePage, thinks Niagara-on-the-Lake is an exception to the rule in Niagara.

“Niagara-on-the-Lake is unique,” said Clements. “We’re tourist-driven.”

Other ideas discussed during the meeting included whether rentals should be limited only in urban areas and whether there should be specific restrictions on large, short-term rentals with pools.

After the delegates presented, there was general agreement from council that further conversation was necessary before making changes to the bylaw.

“Eventually, a bylaw (will) come forward,” Zalepa said.

daniel@niagaranow.com

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