Tiny Township STR bylaw upheld by Ontario court

Municipal offices in the Township of Tiny, Ont. (CTV News/Catalina Gillies)

An Ontario court ruling in favour of Tiny Township, could have major implications for communities that have set their sights on regulating short-term rentals.

A legal challenge filed by the Tiny Township Association of Responsible STR Owners was dismissed by Superior Court Justice Howard Leibovich this week, writing in his ruling that Tiny’s bylaw was “implemented lawful and properly.”

The bylaw passed in 2022 on the back of a multi-year process, paving the way for a new set of rules and regulations for short-term rental (STR) operators.

According to Tiny’s mayor, the regulations were aimed at reducing the number of STR-related complaints.

“The applicant had made a complaint against our bylaws that in their opinion, inhibited their right to run a business and to be able to run a short-term rental in the Township of Tiny,” said Mayor David Evans. “Their claim was that we acted in trying to create, in bad faith, a zoning bylaw, which in fact we did not do.”

Evans said the bylaws have done exactly what the Township imagined, reducing the total number of complaints by 20 to 25 per cent annually.

The regulations incorporated a cap on STRs, with the Township granting only 300.

According to Evans, 123 licences are open for anyone who wants to operate an STR in the Township.

“We’re down to the level now where some complaints are under 10 and they tend to pertain to one or two specific properties,” he added. “We’re very happy with that.”

A statement from the Responsible Hosts of Tiny indicated that it was disappointed but not deterred by the ruling.

“Property rights are fundamental to Ontario’s prosperity and resilience, and thus, we will continue to challenge Tiny Township’s overreaching regulatory regime that infringes on those rights,” said the group in a statement. “Our appeal of this ruling is currently being prepared by the Association.”

Evans said he’s passed along the ruling to his counterparts across Simcoe County, including Oro-Medonte.

The Township has had its own highly contested STA dispute over the last several years.

Township officials were not available for comment when CTV News reached out.

On Wednesday, Barrie’s City Council also received a report on STAs in the city. While the issue is relatively minor, the mayor said it is one that is being monitored.

“I think if we do proceed with a regulatory framework here in Barrie, I need to make sure it’s one that doesn’t go too far,” said Alex Nuttall. “We certainly do receive quite a number of dollars to our MAT, our municipal accommodation tax, through the short-term rental program.”

Tiny Township said roughly 115 charges were held up in the courts because of the pending ruling. Evans added that it will be able to proceed with those charges, now that the case has been dismissed.