Hamilton short-term rental bylaw banning commercial operators starts next month

Hamilton short-term rental operators will need to register with the city in the coming weeks as part of a new bylaw. 

The bylaw makes it illegal for property owners to rent out homes for more than 28 consecutive days on sites like Airbnb if they don't actually live there.

Residents who rent out a spare bedroom, or their entire home for up to two months of the year, both of which are allowed under the new bylaw, can sign up for the required licence beginning Dec. 1, the city said in a news release Tuesday. They will be required to pay an application fee and provide proof it is their principal residence on government records.

Application fees range from $200 to $1,000 depending on the type of short-term rental, with annual renewal fees. 

A bylaw officer will inspect the property to ensure the unit or room meets the fire code and property standards, says the city's website. 

Bylaw meant to create more long-term rentals

Monica Ciriello, director of licensing and bylaw services, said in a statement the bylaw demonstrated the city's "dedication to responsible growth, balancing the needs of our residents and visitors alike.

"We believe in striking a harmonious chord between economic development and neighbourhood preservation," she said. 

Enforcement will begin on Jan. 1, the city says. Commercial operators or corporations won't be permitted to run short-term rentals. If they violate the bylaw, fines will be about $500 but may be increased to a maximum of $100,000. 

The bylaw is designed to discourage people from buying investment properties for short-term rentals. Council approved the program in January, hoping it will add hundreds of units back onto the long-term rental market. 

According to data from the city, there were 1,250 active short-term listings in Hamilton last November. About 80 per cent were entire homes or apartments. 

The program was supposed to roll out in June, but was delayed so city staff could turn their attention to developing another bylaw to stop renovictions.