Short Term Rental Accommodation and Bed & Breakfast Establishments Licensing

Most Recent Update - May 12, 2026

Short Term Rental Accommodation Regulatory Framework – Official Plan Policies, Zoning Regulations, and Licensing Provisions

To effectively manage short-term rental accommodations, with the objective of ensuring safe and peaceful neighbourhoods and safety of renters, a policy and regulatory framework is required involving Official Plan Policies, Zoning Regulations, and Licensing.  This page provides an update on the regulatory framework, and outlines next steps in regulating short-term rentals in the Township of Oro-Medonte.

Official Plan Policies

The Township of Oro-Medonte Official Plan (OP) was adopted by the Township on October 5, 2022, and by the County of Simcoe on November 14, 2023.  The new OP introduced policies pertaining to Short-term Rental Accommodations (STRAs) (Section 4.13).

The STRA policies were appealed to the Ontario land Tribunal (OLT).  The appellants and the Township negotiated settlements involving the creation of new STRA policies under Section 4.13, creation of a new definition of STRA in the OP, and modifying an OP map to correct a mapping error.

An OLT hearing on the appeals was held on February 12, 2026, and a decision was released on March 30, 2026. The decision approved the new STRA policies, the new definition of STRA, and the modification to the OP schedule. View the OLT decision: OLT-24-000037-MAR-30-2026.

The new Section 3.13 (STRA Policies) is as follows:

4.13    Short-Term Rental Accommodations

In order to protect and maintain the character of neighbourhoods and to provide for the tourism accommodation needs of the Township, the following policies apply:

1. This Plan recognizes there are a variety of forms of commercial short-term rental accommodation uses within the Township. These include Bed and Breakfast Establishments, Residential Care Homes, Timeshare Establishments, Village Commercial Resort Units (except where they are part of rental or lease management program) and Short-Term Rental Accommodations that advertise to the travelling public provided in dwelling units.
2. Short-Term Rental Accommodation that advertise are permitted in any Village One (V1) Zone including any (V1) Exception Zone and Residential Two, Exception 123 (R2*123) Zones, which zones may be renamed, revised or amended from time to time. 
3. For the purpose of Policies 4.13.1; 4.13.2; 4.13.5; 4.13.6; and 4.13.7 “advertise” includes promote, broker, market, facilitate or offer for rent, directly or indirectly, in any medium including a platform.  “Platform” means to market or broker the booking, reservation, rental or listing of a Short-Term Rental Accommodation on behalf of a host by means of a website or digital application.         
4. Residential rental accommodation in a residential dwelling for a period of twenty-eight (28) days or more shall not be considered a Short-Term Rental Accommodation use, and is considered a principal residential use. Such uses are governed through other legislation including the Residential Tenancies Act, as amended.
5. Short-Term Rental Accommodation uses that advertise should be regulated to ensure that the principal residential character of a neighbourhood is generally maintained and potential negative impacts are minimized. 
6. Short-Term Rental Accommodation uses that advertise shall not be permitted within registered plans of subdivision and other existing residential areas except in accordance with the policies and criteria contained in Policies 4.13.5; 4.13.7; 4.13.8; and 4.13.9.
7. Due to the commercial nature of Short-Term Rental Accommodation uses that advertise and their potential to negatively impact adjacent residential properties, where a Short-Term Rental Accommodation use that advertises is proposed, it shall be subject to a Zoning By-law Amendment.  In reviewing any proposed Zoning By-law Amendment, the following criteria shall be considered:
   1. the intent of the Plan is maintained;
   2. the use does not generate conflicting land use impacts with the surrounding land uses, such as noise, garbage, etc.;
   3. the use is consistent with, and maintains the character of the surrounding area;
   4. the scale of the proposed use is suitable for the site and surrounding area; 
   5. adequate water and sewage services can be provided to the satisfaction of the Township;
   6. appropriate access routes and/or on-site parking can be provided;
   7. the shoreline and water quality are protected, if located within the Shoreline designation; and
   8. nuisance mitigation measures such as setbacks, buffering, and landscaping are to be implemented. 
8. The implementing Zoning By-law shall establish appropriate provisions related to the scale of Short-Term Rental Accommodation uses such as parking requirements, separation distance, setbacks and buffering.  The location, size and scale of the Short-Term Rental Accommodation use shall be regulated in a manner, which is considered compatible with surrounding uses. Where mitigation measures cannot adequately address potential land use conflicts, consideration of an amendment to the Zoning By-law will not be supported by the Township.
9. In addition to Zoning By-laws, Short-Term Rental Accommodation uses may also be subject to, but not limited to, other municipal By-laws including licensing, parking, noise, property standards, Building Code, and fire and safety regulations.

The new definition of Short-Term Rental Accommodation is as follows:

Short-Term Rental Accommodation (STRA) means a dwelling or dwelling unit, or any portion of it, that is rented for any portion of a period of less than 28 days and includes a Bed and Breakfast Establishment, but does not include a hotel, motel, boarding lodging or rooming house, residential care home, time-share establishment, and Village Commercial Resort Units that are part of a rental or lease management program.

Short-Term Rental Accommodation Zoning Framework Update

The Township is working through the process of updating its Zoning By-law which will need to conform to the new Official Plan including the in-force STRA policies. STRA Zoning matters are to be reviewed in more detail through a separate consultation process which is intended to improve and clarify zoning provisions.

Under the current zoning framework, short term rental accommodation uses are only permitted within the Village Commercial One (V1) and Residential (R2*123) Zones, which are located within Horseshoe Valley consistent with the resort and tourist operations within the settlement area.

Properties that are not zoned Village One (V1) or Residential (R2*123) are required to obtain zoning approval from Council to permit short-term rental accommodation uses through a zoning by-law amendment.

Licensing for short-term rental accommodation would only be available to properties that are zoned to permit short-term rental accommodation use and regulated/enforced on a Township-wide basis.

As outlined in Staff Report DS2025-088 dated August 13, 2026, Council has provided direction to undertake a consultation program on four zoning framework options which would be reviewed for direction as a second phase in 2027.

• Option 1-Status Quo
• Option 2- Secondary STRA Uses expanded into Agricultural/Rural Areas
• Option 3-Expand STRA Permissions to Residential Dwellings in all zones that permit Residential Dwellings as a Secondary Use
• Option 4-Expand Permissions of STRAs as Secondary Uses on a Temporary Basis

The consultation process is being planned to proceed in 2027, and the implementation of the zoning framework is expected to be approved by Council in 2027. This phase of the STRA program includes the following:

• STRA Zoning Framework Public Consultation
• Staff Information Report compiling comments and outlining next steps
• Staff Recommendation Report seeking direction from Council
• Preparation of a Draft By-law and Report for Council consideration & Direction
• Statutory Public Meeting presenting the draft STRA By-law for receipt of comments from the public and stakeholders
• Staff Recommendation Report and Council consideration
• Council Adoption of an STRA Zoning By-law
• Commencement of Appeal Period
• By-law in full force and in effect*

*Subject to appeal rights as per the Planning Act.

Licensing of Short-Term Rental Accommodations and Bed & Breakfast Establishments

The Township learned through a presentation by two experienced professionals that it is very difficult to prosecute STRA offences under the Zoning By-law.  To be successful in Provincial Offences Court, evidence is required that proves beyond a reasonable doubt that a STRA was operating as a commercial operation. The evidence can be challenging to gather. The type of evidence required, and the evidence not permitted to be submitted in court is outlined in Staff Report DS2024-093.

The establishment of a Licensing By-law is an alternative used by many municipalities in Ontario to regulate how STRAs and B&B establishments operate.  They are created to ensure that neighbourhood nuisances are minimized and dwelling units that are used as a STRA or B&B meet minimum health and safety requirements.  They work in conjunction with the Township’s Zoning By-law, which defines the uses permitted in a zone and the land use requirements for the zone (setbacks, parking, building height and area, location of accessory buildings, etc.).  Zoning regulates the type of use permitted and a Licensing By-law regulates how the use occurs.

The Township of Oro-Medonte created a Draft Licensing By-law for Short Term Rental Accommodation based on input from the public that establishes rules and regulations for the safe operation of legal STRAs and B&B establishments and penalties for non-compliance.  The By-law would apply Township wide to legal (i.e. meets zoning requirements) and illegal STRAs and B&B establishments that function as commercial accommodation. The By-law includes penalties that would apply to both legal and illegal operators, and was presented to Council in August 2025.

Revisions to the draft Short Term Residential Accommodation Licensing By-law are now planned to include provisions to ensure that short-term rental accommodation operations that advertise are secondary to the main residential use by only permitting rentals to occur for a fixed number of days per calendar year. Such revisions to the draft Licensing By-law are to be brought to Council in late May or early June 2026 for consideration. The intent is to have the Short-Term Rental Accommodation Licensing By-law in effect in August/September 2026.

It is through the consideration of revisions to the By-law that a transition and notification period for operators will be determined. Sufficient notification and time to allow operators to obtain licensing will be provided and communicated through outreach by the Township.

Administrative Monetary Penalties (AMP)

In 2014, provincial regulations came into effect allowing municipalities to administer set fines/monetary penalties under an Administrative Monetary Penalty Program (AMP) for parking tickets. The purpose was to remove the burden of parking tickets from the court system to free up time and possibly expedite the process for municipalities. 

Later, the Municipal Act was amended to provide municipalities with the authority to establish and set up an AMP program related to enforcement of other By-laws.  AMP By-laws provide an efficient method of penalizing those that violate regulatory By-laws and another option to gain compliance.

1. Under the Municipal Act, S.O. 2001, c. 25, as amended, municipalities have the authority to:
2. establish a system of fines Section 429 (1)
3. require a person to pay an AMP Section 102.1 (1)
4. impose fees or charges Section 391 (1)
5. apply fees and charges as a debt to the municipality Section 398 (1) delegate its administrative and hearing powers Sections 23.3 (2)

The amount of an administrative penalty established by a municipality is not to be punitive in nature.  Unpaid penalties can be added to the tax roll of a property and collected like property taxes.

In addition, and perhaps most importantly, the burden of proof that a violation has occurred is based on the likelihood the violation has occurred (“balance of probabilities”) as opposed to the “reasonable doubt” standard for prosecutions under the Provincial Offences Act.

An AMP program provides an efficient and effective method for dealing with non-compliance related to Township By-laws and enforcement. It is essentially another enforcement tool for the Township to utilize when enforcing By-law contraventions.

Council enacted an AMPS By-law in December 2024 (By-law 2024-128) and municipal law enforcement has used it since it was enacted.  Multiple fines have been issued under the By-law.

The proposed STRA and B&B Licensing By-law was developed using AMP penalties for various violations of the By-law for both legal and illegal STRAs and B&Bs across the Township.  The draft By-law has the following penalties for the violations noted:

**The AMPS By-law must be amended to include the above noted penalties.