Short-term rental scheme won't deal with 'party palaces' in Georgina

Town continues to shape regulatory framework to address estimated 150 short-term rentals in lakeside neighbourhoods

Yorkregion.com
May 2, 2019
Heidi Riedner

While the town inches its way toward regulating an estimated 150 short-term rentals operating in lakeside neighbourhoods, residents living beside those operating as “party palaces” are bracing for another “nightmare” summer season.

Proposed regulations that include a licensing bylaw, a renter’s code of conduct and a demerit system won’t happen before next year, consultant Michael Smith said during a packed three-hour special meeting on the issue held at council last week.

The goal is balancing local tourism, shared economy and interests of nearby residents under an enforceable framework to deal with the 14 or so “bad actors” with renters and negligent hosts disrupting residential neighbourhoods, Smith said.

Residents and B&B owners impacted by the new framework, however, raised concerns over what they say is an onerous and expensive system that favours commercial interests over the rights of taxpaying residents.

Host accountability was a key issue raised by Susan Johnston, who was one of many who spoke on the matter.

Johnston said the town should follow the lead of the Town of Blue Mountains, which limits the rentals to tourist-zoned sections and requires an owner or property manager to respond in person within one hour of a complaint being lodged.

“Most are probably good people and abide by the rules, but as we know, many of them are not,” she said.

“There has to be some respect for the community,” said Hedge Road resident Ivy Howes, who lives beside a six-bedroom short-term rental run by worldwide rental platform Quick Stay.

“They are in residential areas and that’s what the problem is.”

Howes, like many who took to the podium, said the purported “financial rewards” of a shared economy and spinoff benefits to tourism are being favoured over the people who live here, pay taxes and who shop regularly in town.

“You’re taking away from them,” she said.
The proposed regulation also doesn’t sit well with B&B hosts, who would be folded into the new system.

They say being branded the same as negligent hosts and being subject to the same $2,000 licensing fee is unfair.

Lois and Doug Andrews, who have operated a Pefferlaw B&B since the mid-90s, don’t have an issue with regulation, but feel the town may have “an uphill battle” trying to get corporations, rather than owners, to comply.

They also called the proposed $2,000 licensing fee “a little steep,” especially for responsible owners who have been operating without complaint.

“I think we may have missed the mark,” said Peter Waring, who has operated a Hedge Road Airbnb for the past several years.

Waring believes responsible owners do contribute to the local economy in a meaningful way, as pointed out in survey results presented by the Georgina Chamber of Commerce whose overall take-away was short-term rentals have a positive impact on business, especially those directly related to tourism.

Waring, however, said the key was “we live in our house.”

Conceding the 20 or so “party palaces” are the problem, he added the town is creating a bureaucracy to deal with something that is primarily an enforcement issue.

“Do the math. It’s not a huge problem,” he said, adding the $287,792 estimated costs to run the licensing scheme, however, is.

The result is a more complicated system involving applications, inspections and management of a demerit system that has to be enforced when there already seems to be a “reluctance to enforce” social issues happening now.

“I’m not convinced that the licensing system is going to deal with the social issues,” he said, adding a simpler solution would involve more police involvement and solid enforcement.

The town will receive comments from the public until May to be incorporated into a future report further redefining the regulatory framework being proposed.