Stephanie Field of Cottage Care Rentals and JT Lowes of All Season Cottage Rentals asked Minden Hills council, May 29, to tweak its short-term rental rules.
The two said the township’s bylaw wording about buildings and structures is confusing. They added when people are applying for a short-term rental licence, and are told they have to pay additional money for a licence of occupation for a dock, and proof of added insurance, they are taken aback.
Lowes said “many owners have decided, with the extra expenses, they’re no longer going to rent. It’s just not worth it.” He said his business has lost 75-80 per cent of its renters in Minden Hills.
He and Field clarified their market is people who rent out for three to five weeks a year to help offset costs of running a cottage, such as paying taxes or for new docks or decks. He said they are being impacted by the new short-term rental rules much more than people on online platforms renting 365 days of the year who are getting much more income.
As a result, Lowes said bad renters are staying in the game and good ones leaving. He noted cottage rental companies do the things the bylaw covers, such as ensuring properties are safe and up to code. They deal with neighbour complaints.
The two suggested a class B licence for cottage rental companies. They said the township could be included in indemnity waivers to ease fears about liability. That would eliminate the need for a licence of occupation for a dock, as well as extra insurance.
Lowes said their loss of rental properties will affect the Highlands’ economy, and has already resulted in job cuts. Field added they are losing repeat renters.
Algonquin Highlands and Dysart et al do not require licences of occupation, or proof of insurance, for docks on shore road allowances.
Mayor Bob Carter said the existing rules are about liability. “Since we own land, and are letting someone operate a business on the land, we are the last stop for collection of any insurance claims.”
Coun. Pam Sayne said cottage rental agencies have been in the County a long time and provide a valuable service. She said they are full-time operators who understand all aspects of the business. They inspect properties to ensure safeguards. She said the township should look into the request by way of a report back from staff.
Carter said the County and, subsequently, the townships, passed short-term rental rules to crack down on a growing business that was creating problems in the County. “But, as often happens, what you write sounds great, until it gets to be a practical situation…”
He was intrigued by the prospect of an indemnity clause. He said staff could look into that and encouraged Field and Lowes to provide ongoing feedback. Deputy mayor Lisa Schell was also in favour of taking another look at the bylaw. Coun. Tammy McKelvey said short-term rental owners are facing rules others are not, while coun. Bob Sisson said they don’t want to lose business in Minden Hills.
Council received the delegation for information only, and, later in the meeting, agreed they need a staff report on definitions of a structure, possible licensing classifications, and the potential for indemnification.
