City of Sault Ste. Marie looks to regulate Airbnb, short-term rentals

Sault proposes short-term rental regulations The City of Sault Ste. Marie is looking to regulate short rental services, like AirBNB. Christian D'Avino reports.

Sault Ste. Marie — The City of Sault Ste. Marie is getting set to hold public consultations on proposed rules surrounding short-term rentals, like Airbnb.

The city is considering limiting each host to owning one property in residential zones, which must also be attached to their primary residence.

The new rules could also enforce valid licences, limit owners to operating for 180 days a year, and could even enforce the four per cent municipal accommodation tax paid by hotels and motels in Sault Ste. Marie.

"It's trying to get the balance of regulation right in Sault Ste. Marie," said city councillor Luke Dufour. "It's so that as the Airbnbs grow, they do so in a way that's compatible with the neighbourhoods that are already existing in Sault Ste. Marie."

The city estimates that there are roughly 13 Airbnb hosts that operate multiple listings throughout Sault Ste. Marie.

Dufour said the idea behind new regulations is not to stop Airbnbs altogether but is instead about being proactive in avoiding situations seen in other cities throughout the country.

"For instance, in Toronto, large sections of neighbourhoods being taken over by Airbnbs, a significant amount of apartment rental housing being turned over to the short-term rental market," he said.

Dufour said he has spoken with a few Airbnb hosts already in how to properly regulate short-term rental services.

One idea that he believes would be fair is grandfathering in those who are voluntarily paying the accommodation tax already.

"That's something we've been doing since we started, so we would be totally on board for it," said Gil Desbois, an Airbnb host in Sault Ste. Marie.

Desbois said he purchased a home next to his own with the intention of operating it as his business.

While nothing is set in stone, he said the new rules present a significant danger to his businesses.

"It would effectively shut us down because we wouldn't be able to operate under that system," he said.

Desbois said giving short-term rental owners the chance to continue their service, benefits the entirety of Sault Ste. Marie.

In his experience, he said some families often are looking to rent entire homes instead of multiple hotel rooms, making their travels to the city much easier.

The tourism group, Destination Northern Ontario also believes having a balance helps the entire hospitality industry grow.

"The more options we have for visitors, we feel the more visitation we'll get," said David MacLachlan, the tourism agency's executive director. "But we do believe some regulation is good. Really it's about levelling the playing field so that it's fair and equitable between all hospitality services."

The city has yet to choose dates for its public consultations at this time.