East Gwillimbury Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in East Gwillimbury, Canada?

Short-term rentals through platforms like Airbnb and Vrbo have become increasingly popular in East Gwillimbury in recent years. However, hosts must navigate a complex web of municipal zoning bylaws and provincial regulations to operate legally. Here's what you need to know:

Starting a Short-Term Rental Business in East Gwillimbury

To start a short-term rental in East Gwillimbury, the first step is confirming your property is eligible under the town's zoning bylaw. Short-term rentals are only permitted in certain zones, primarily those that allow "Bed and Breakfast" use as a home occupation.

The zoning bylaw defines a "Bed and Breakfast" as a dwelling where the owner provides up to three bedrooms for paying guests on a temporary basis, with stays not exceeding 30 consecutive days. The owner must live on-site in the principal residence during guest stays.

Properties located in rural areas outside villages have some additional flexibility. Owners of rural properties can apply for a separate "cottage rental" permit to occasionally rent out a second home or accessory dwelling, subject to meeting certain criteria.

All short-term rental operators in East Gwillimbury must obtain a valid business license from the town. The application requires submitting various documents, including:

• Proof of principal residence (government ID and a utility bill/property tax bill showing the address)
• Parking plan showing required on-site parking
• Floor plans of the short-term rental unit
• Proof of insurance allowing short-term rental use
• Property owner consent if the applicant is a tenant

The annual business license fee is $150. Fines for operating without a license can reach $450 per day.

In addition to the local requirements, short-term rental hosts in East Gwillimbury must also comply with new provincial regulations that took effect in May 2024. The key provisions include:

1. Restricting short-term rentals to the host's principal residence across Ontario
2. Requiring hosts to register with the provincial short-term rental registry (launching in late 2024/early 2025)
3. Enabling municipalities to levy fines up to $3000 per day for non-compliance
4. Requiring platforms like Airbnb to share data with the province for enforcement purposes

Failure to comply with the provincial rules can result in fines up to $5000 per day from the new provincial enforcement unit.

Short-Term Rental Licensing Requirement in East Gwillimbury

The Town of East Gwillimbury requires all short-term rental operators to obtain a valid business license. Here are the key requirements based on information from the official town website:

1. Short-term rentals are only permitted in zones that allow "Bed and Breakfast" use as a home occupation. This is primarily residential zones.
2. The short-term rental must be located within the operator's principal residence. The operator must live on-site during guest stays.
3. A maximum of three bedrooms can be rented to guests.
4. Sufficient on-site parking must be provided as per the zoning bylaw (typically 1 space per guest room plus 1 for the main dwelling).

To apply for a short-term rental business license, operators must submit the following to the Building Department:

1. Completed Business License Application form
2. Proof of principal residence (government-issued ID and a recent utility bill or property tax bill showing the address)
3. Parking plan sketch showing the location of required on-site parking spaces
4. Floor plans of the short-term rental unit showing room dimensions and total floor area
5. Proof of insurance with a minimum $1 million liability coverage for short-term rental use
6. If the applicant is a tenant, a letter from the property owner consenting to the short-term rental use
7. $150 annual license fee payable by cash, cheque or debit

Applications can be submitted in person at the East Gwillimbury Civic Centre (19000 Leslie Street, Sharon) or by email to building@eastgwillimbury.ca.

The licensing process typically takes 3-4 weeks from receipt of a complete application. The Building Department may conduct an inspection to confirm compliance with zoning and building code requirements prior to issuing the license.

Operating a short-term rental without a valid business license is an offense subject to fines of up to $450 per day. With the new provincial short-term rental legislation now in effect, unlicensed operators could face additional penalties of $1000 per day from municipal bylaw enforcement and up to $5000 per day from the provincial enforcement unit.

It's crucial for short-term rental hosts in East Gwillimbury to carefully review both the local licensing requirements and the new provincial rules to ensure they are in full compliance. Consulting with the town's Building and Planning Departments is recommended for any specific questions about the licensing process or zoning restrictions. Staying informed and getting properly licensed will help hosts avoid costly penalties and set their short-term rental business up for long-term success.

Required Documents for East Gwillimbury Short-Term Rentals

When applying for a short-term rental business license in East Gwillimbury, hosts must submit the following documents along with their completed application form:

1. Proof of Principal Residence: Two documents proving the short-term rental property is the host's principal residence. One must be government-issued photo ID (driver's license, passport, etc.). The second can be a recent utility bill, property tax assessment, or other official mail showing the host's name and address. This confirms compliance with the provincial principal residence requirement for short-term rentals effective May 2024.
2. Parking Plan: A sketch or site plan showing the location and dimensions of the required on-site parking spaces (1 space per guest room plus 1 for the main dwelling). This demonstrates adherence to the zoning bylaw's parking provisions for bed and breakfasts.
3. Floor Plans: Scaled floor plans of the short-term rental unit clearly showing the dimensions and layout of all bedrooms, bathrooms, kitchen, living spaces and exits. The plans should label the short-term rental areas and include calculations of the total floor area to confirm the unit does not exceed zoning size limits.
4. Proof of Insurance: Documentation from the host's home insurance provider confirming the policy allows short-term rental use and provides a minimum of $1 million in liability coverage. Some insurers may require purchasing an additional short-term rental endorsement.
5. Property Owner Consent (if applicable): If the applicant is a tenant rather than the property owner, a signed letter from the owner consenting to the short-term rental use is required.

Incomplete applications missing any of these required documents will not be processed. The Building Department can assist with any questions about the application requirements and ensure hosts have all the necessary paperwork before submitting.

It's important for short-term rental operators in East Gwillimbury to carefully review both the local licensing requirements and the new provincial rules to ensure they have all the proper documentation. Staying organized and keeping detailed records will help hosts navigate the evolving regulatory landscape and run successful, compliant short-term rentals.

East Gwillimbury Short-Term Rental Taxes

Short-term rental hosts in East Gwillimbury are subject to various taxes, including income tax, HST, and potentially a Municipal Accommodation Tax in the future. Understanding and complying with these tax obligations is essential for running a successful and legal short-term rental business.

Income Tax

All income earned from short-term rentals is taxable and must be reported on the host's personal income tax return. The amount of tax owed depends on the host's total taxable income and applicable tax bracket. As of the 2023 tax year, the federal income tax rates are:

1. 15% on the first $53,359 of taxable income
2. 20.5% on the portion of taxable income over $53,359 up to $106,717
3. 26% on the portion of taxable income over $106,717 up to $165,430
4. 29% on the portion of taxable income over $165,430 up to $235,675
5. 33% on the portion of taxable income over $235,675

In addition to federal income tax, Ontario has its own provincial income tax rates. For 2023, the provincial tax rates are:

1. 5.05% on the first $49,231 of taxable income
2. 9.15% on the portion of taxable income over $49,231 up to $98,463
3. 11.16% on the portion of taxable income over $98,463 up to $150,000
4. 12.16% on the portion of taxable income over $150,000 up to $220,000
5. 13.16% on the portion of taxable income over $220,000

Harmonized Sales Tax (HST)

Short-term rental operators in Ontario must register for an HST account and collect the 13% Harmonized Sales Tax on their rental fees if their annual worldwide revenue exceeds $30,000. For hosts below this threshold, HST registration and collection is voluntary but may still provide benefits like the ability to claim input tax credits.

Municipal Accommodation Tax (MAT)

East Gwillimbury does not currently have a Municipal Accommodation Tax (MAT) on short-term rentals. However, some nearby municipalities like Newmarket have implemented a 4% MAT to fund local tourism promotion. East Gwillimbury hosts should monitor for any potential future changes to the town's MAT rules.

Possible Tax Deductions

While short-term rentals generate taxable income, hosts can deduct many related expenses to reduce their tax liability. Some common eligible deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning fees
6. Repairs and maintenance
7. Supplies (linens, toiletries, etc.)
8. Advertising and platform service fees
9. Accounting and legal fees
10. Depreciation on capital assets (appliances, furniture, etc.)

Hosts who use a portion of their principal residence for short-term rentals may also be able to claim the "business-use-of-home" deduction for a percentage of home expenses like mortgage interest, property taxes, insurance, utilities, and maintenance.

It's crucial for hosts to keep accurate records of all rental income and expenses to support their tax deductions. Working with a knowledgeable accountant or tax professional is recommended to ensure compliance with all tax laws and optimize deductions.

By understanding the tax implications of short-term rentals and taking advantage of available deductions, East Gwillimbury hosts can minimize their tax burden and maximize the profitability of their rental business. Staying informed about any future changes to municipal or provincial tax rules will also help hosts remain compliant in the evolving regulatory landscape.

Ontario Wide Short-Term Rental Rules

In addition to municipal regulations, short-term rental hosts in East Gwillimbury and across Ontario must also comply with new province-wide rules that took effect on May 1, 2024. The Short-Term Rental Accommodations Act aims to return more short-term rentals to the long-term housing market and give municipalities stronger enforcement tools.

The key provincial requirements that East Gwillimbury hosts need to be aware of include:

1. Principal Residence Requirement: Short-term rentals are restricted to a host's principal residence, plus one secondary suite or accessory dwelling unit on the same property. This applies to all communities in Ontario with populations over 10,000.
2. Removal of Legal Non-Conforming Use Protections: Legal non-conforming use protections no longer apply to short-term rentals as of May 1, 2024. Properties previously grandfathered despite not conforming with current zoning bylaws have lost that status.
3. Business Licence Display: Where required by local governments like East Gwillimbury, short-term rental hosts must display a valid business license number on all listings starting May 1, 2024. Non-compliant listings can be removed by booking platforms at the municipality's request.
4. Data Sharing: Short-term rental platforms like Airbnb and Vrbo must share data about their Ontario listings with the provincial government monthly starting in the summer 2024. This data will help local governments enforce their bylaws.
5. Provincial Registration: The province plans to launch a short-term rental registry in late 2024 or early 2025. Once implemented, hosts will need to include their provincial registration number in all listings, which booking platforms must validate.
6. Fines and Penalties: The act allows municipalities to levy fines up to $3000 per day for non-compliance. A new provincial enforcement unit can also issue fines of up to $5000 per day for violations.

These province-wide rules apply on top of any local regulations set by the Town of East Gwillimbury. Some municipalities like Toronto have even stricter bylaws that further restrict who can operate short-term rentals.

The new provincial legislation has faced pushback from some property owners and short-term rental advocates who argue it unfairly targets compliant operators and will cause significant financial losses. However, the Ontario government maintains the rules are necessary to crack down on commercial operators and return needed housing stock to the long-term rental market.

With the May 1, 2024 deadline now passed, short-term rental hosts in East Gwillimbury and across Ontario are working to understand and comply with the complex new provincial and municipal requirements. Those with upcoming reservations are scrambling to confirm their properties meet all the new criteria.

Significant questions and gray areas still remain, especially around the enforcement of the principal residence requirement. With the provincial registration system not launching for several more months, it will take time for the full impacts to become clear. For now, hosts, guests, and municipalities are all closely monitoring how the new rules play out on the ground.

Does East Gwillimbury Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, East Gwillimbury has historically been relatively lax in enforcing short-term rental regulations compared to larger cities like Toronto. Many hosts have operated short-term rentals in East Gwillimbury despite not fully complying with the zoning bylaw that restricts rentals to the bed and breakfast format with the host present on-site.

Enforcement has primarily been complaint-based rather than proactive, allowing a number of non-conforming short-term rentals to fly under the radar. Bylaw officers have focused on responding to noise, parking, and nuisance complaints rather than actively hunting for illegal listings.

However, this hands-off approach is starting to change with the new provincial short-term rental legislation that took effect on May 1, 2024. The increased municipal fines of up to $3000 per day and the threat of penalties of up to $5000 per day from the new provincial enforcement unit are prompting East Gwillimbury to step up its STR enforcement game.

The town's bylaw department is likely to start proactively monitoring short-term rental listings and cracking down on non-compliant operators now that they have stronger tools and provincial backing. The risk of operating an unlicensed or non-conforming short-term rental in East Gwillimbury is rapidly rising.

That said, East Gwillimbury still remains more short-term rental friendly than major cities like Toronto or Vancouver, which have much stricter regulations and enforcement. East Gwillimbury's zoning bylaw at least allows for some limited short-term rentals in the form of bed and breakfasts, whereas Toronto has effectively banned all short-term rentals except those in a host's principal residence.

East Gwillimbury's smaller size, more rural character, and history of light-handed enforcement have made it an appealing spot for short-term rental operators looking to avoid the red tape and scrutiny of big cities. This is likely to become less true as the town aligns its approach with the new provincial rules. However, East Gwillimbury is still a less risky and more welcoming place to run a short-term rental than Toronto.

The bottom line is that East Gwillimbury is transitioning from a short-term rental wild west to a jurisdiction with tighter rules and stepped-up enforcement. While not as strict as Toronto, hosts in East Gwillimbury can no longer assume non-compliance will go undetected and unpunished. The days of lax enforcement are coming to an end as the new provincial regulations take hold.

Short-term rental operators in East Gwillimbury need to get licensed, get conforming, and get compliant to avoid costly penalties. Those who fail to adapt to the new regulatory reality could face severe financial consequences. While East Gwillimbury remains more STR-friendly than some cities, hosts still need to play by the rules to stay in the game for the long term.

How to Start a Short-Term Rental Business in East Gwillimbury

Starting a successful and compliant short-term rental business in East Gwillimbury involves careful planning and execution. Here are the key steps to follow:

• Confirm your property is eligible: Review East Gwillimbury's zoning bylaw and the new provincial short-term rental regulations to verify your property qualifies. As of May 2024, short-term rentals are limited to a host's principal residence and must conform to the "bed and breakfast" format in the zoning bylaw. This means the host must be present on-site during guest stays and can rent a maximum of three bedrooms.
• Obtain required licenses and permits: Apply for a short-term rental business license from the Town of East Gwillimbury Building Department. You will need to provide proof of principal residence, a parking plan, floor plans, proof of insurance, and pay the $150 annual license fee. If you are a tenant, you will also need a letter of consent from the property owner. Once the provincial short-term rental registry launches in late 2024 or early 2025, you will also need to register with the province and include your registration number in all listings.
• Prepare your space for guests: Ensure your short-term rental is safe, comfortable, and well-equipped for guests. This may involve upgrading furnishings and amenities, making necessary repairs, and stocking up on essential supplies like linens and toiletries. Consider hiring a professional photographer to showcase your space in its best light for your online listings.
• Create an enticing listing: Sign up for popular short-term rental platforms like Airbnb and Vrbo and craft a compelling listing that highlights your space's unique features and selling points. Use an eye-catching title, write a detailed description, and include high-quality photos. Be upfront about any quirks or limitations to manage guest expectations. Make sure to prominently display your East Gwillimbury business license number and provincial registration number (once available) on your listing to comply with regulations.
• Set competitive rates: Research similar short-term rentals in East Gwillimbury and nearby communities to determine a competitive nightly rate for your space. Consider using dynamic pricing tools that automatically adjust your rates based on demand and seasonality. Don't forget to factor in additional costs like cleaning fees, service fees, and taxes when setting your prices to ensure profitability.
• Establish clear house rules and policies: Create a comprehensive set of house rules and rental policies that cover important topics like check-in/out times, maximum occupancy, parking instructions, noise restrictions, pet policies, and cancellation terms. Communicate these rules clearly in your listing and consider having guests sign a rental agreement acknowledging the policies.
• Develop a robust cleaning and maintenance plan: Create a detailed cleaning checklist and hire a reliable cleaning service or individual cleaners to thoroughly turn over your rental between guests. Schedule regular deep cleans and preventative maintenance to keep your space in top condition. Consider using a property management platform to automate cleaning and maintenance scheduling.
• Deliver exceptional hospitality: Respond promptly and professionally to all guest inquiries and messages. Provide clear and helpful check-in instructions, and consider creating a digital guidebook with local recommendations for dining, activities, and attractions. Go above and beyond with small touches like a welcome basket or handwritten note to make guests feel at home.
• Stay compliant and keep accurate records: Regularly review municipal and provincial short-term rental regulations to ensure ongoing compliance. Keep meticulous records of all rental income and expenses to facilitate proper tax reporting and license renewals. Consider working with a specialized accountant or bookkeeper to ensure you are following all tax laws and maximizing deductions.

By following these steps and prioritizing regulatory compliance and guest satisfaction, East Gwillimbury hosts can build a thriving and sustainable short-term rental business. While the regulatory landscape is becoming more complex, there are still opportunities for responsible hosts who are willing to adapt and play by the rules. With careful planning, attention to detail, and a commitment to providing exceptional hospitality, short-term rental operators in East Gwillimbury can achieve long-term success in this dynamic industry.

Who to Contact in East Gwillimbury about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance with short-term rental regulations and zoning in East Gwillimbury, there are several key contacts and resources available:

Town of East Gwillimbury Building Department: The Building Department is responsible for issuing short-term rental business licenses and conducting inspections to ensure compliance with building codes and safety standards. They can provide information on the licensing application process, requirements, and fees.

Town of East Gwillimbury Building Department
19000 Leslie Street
Sharon, ON L0G 1V0
Phone: 905-478-4283 ext. 3844
Email: building@eastgwillimbury.ca

Town of East Gwillimbury Planning Department: The Planning Department administers the town's zoning bylaw, which regulates where short-term rentals are permitted and in what form. They can answer questions about zoning requirements, allowed uses, and the process for seeking a zoning bylaw amendment or minor variance.

Town of East Gwillimbury Planning Department
19000 Leslie Street
Sharon, ON L0G 1V0
Phone: 905-478-4283 ext. 3872
Email: planning@eastgwillimbury.ca

Town of East Gwillimbury By-law Enforcement Department: The By-law Enforcement Department is responsible for enforcing compliance with the town's short-term rental and zoning regulations. They investigate complaints and can issue fines for violations. You can contact them to report a suspected illegal short-term rental or ask questions about enforcement.

Town of East Gwillimbury By-law Enforcement Department
19000 Leslie Street
Sharon, ON L0G 1V0
Phone: 905-478-4282 ext. 3907
Email: bylawcomplaints@eastgwillimbury.ca

Ontario Short-Term Rental Information Line: The province has set up a dedicated information line to answer questions about the new provincial short-term rental legislation, including the principal residence requirement, registration process, and enforcement provisions.

Ontario Short-Term Rental Information Line
Phone: 1-888-337-5550
Email: str@ontario.ca

In addition to these official contacts, there are several online resources and forums where short-term rental hosts can connect with each other and share information:

• East Gwillimbury Short-Term Rental Association: A local industry group for short-term rental operators in East Gwillimbury. They provide education, advocacy and resources for members.
• East Gwillimbury Short-Term Rentals Facebook Group: A private Facebook group for short-term rental hosts and property managers in East Gwillimbury to share news, tips, and advice.
• Bigger Pockets Short-Term Rental Forum: An online forum for short-term rental investors and operators across North America to discuss strategies, regulations, and best practices.
• Airbnb Community Center: Airbnb's official forum for hosts to connect with each other and get support from Airbnb staff.

By reaching out to these contacts and engaging with the short-term rental community, hosts in East Gwillimbury can stay informed about evolving regulations and access the resources they need to run successful and compliant vacation rentals. With significant regulatory changes reshaping the industry, proactive communication and education will be essential for navigating the new landscape.

What Do Airbnb Hosts in East Gwillimbury on Reddit and Bigger Pockets Think about Local Regulations?

Several threads on Reddit and Bigger Pockets offer insights into how residents and visitors perceive East Gwillimbury as a place to live and vacation. Here are a few notable examples:

"Best day trips from Toronto?" (Reddit r/toronto): In a discussion of top day trip destinations from Toronto, several users suggest East Gwillimbury and the surrounding area. They highlight attractions like the Bare Oaks Family Naturist Park, Willow Springs Winery, and Forget-Me-Not Alpacas farm. The charming small-town atmosphere and proximity to nature are cited as appealing features for a quick getaway.

"Investing in a cottage rental property in Ontario" (Bigger Pockets Forums): An investor asks for advice on purchasing a cottage rental property in Ontario. While East Gwillimbury is not specifically mentioned, several respondents recommend considering the Lake Simcoe area, which includes parts of northern East Gwillimbury. They note the strong demand for cottage rentals within a short drive of the GTA and the potential for good rental income, especially during the summer peak season.

Based on these discussions, East Gwillimbury appears to be an appealing destination for both residents and visitors seeking a quiet, nature-oriented escape from the city. The town's small-town charm, abundant green space, and outdoor recreational opportunities are consistently cited as key selling points.

For short-term rental operators, East Gwillimbury's proximity to the GTA and its appeal as a peaceful, rural getaway could make it an attractive location to invest in a vacation rental property. The town's many natural and cultural attractions provide a strong draw for visitors looking for a quick break from the urban grind.

However, the new provincial and municipal regulations around short-term rentals are a critical consideration for anyone looking to start a vacation rental business in East Gwillimbury. Properties that are not the host's principal residence or do not conform to the town's zoning bylaw may no longer be viable as short-term rentals.

That said, properties that do meet the new criteria, such as those with a legal "bed and breakfast" designation in the host's principal residence, could be well-positioned to capitalize on East Gwillimbury's growing appeal as a short-term rental destination. Hosts who can navigate the evolving regulatory landscape and deliver a memorable small-town experience may find success in this niche market.

Overall, while the short-term rental industry in East Gwillimbury is facing new challenges and restrictions, the town's enduring charm and convenient location suggest there are still opportunities for savvy and compliant hosts. By staying informed about regulations, connecting with the local community, and showcasing the best of the town's natural and cultural offerings, short-term rental operators can tap into East Gwillimbury's potential as a peaceful, yet accessible, getaway spot in the heart of York Region.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.