Airbnb & Short-Term Rentals in Durham Region: What’s Allowed in Each Town?

Airbnb and Short-Term Rentals in Durham Region, Ontario: Regulations by Municipality

Short-term rentals (STRs) like Airbnb and Vrbo have become increasingly popular across Ontario, offering travellers flexible accommodation options and homeowners a way to generate additional income. However, the regulation of STRs varies significantly by municipality. In Durham Region, each town has its own rules governing short-term rental operations. This guide provides a comprehensive overview of where STRs are allowed and what regulations apply in each municipality within Durham Region.

Ajax

Yes, Airbnbs are allowed in Ajax, but they are subject to strict regulations:

• Short-term rentals are only permitted in urban residential zones, with approval from the Planning and Development Department.
• Operators must use their primary residence for rentals.
• A Municipal Accommodation Tax (MAT) must be paid quarterly.
• MAT payments are due by the 15th day after the end of each quarter.

Short-Term Rental Framework

Ajax introduced a short-term rental framework to address the housing crisis and ensure STR operators adhere to best practices. The framework includes an educational campaign to guide hosts in compliance and responsible operation.

Whitby

Whitby does not currently permit short-term rentals. However, the town is actively working on new rules, regulations, and licensing standards for STRs, such as Airbnb, Vrbo, and HomeAway.

Project Background and Next Steps

In 2019, the Whitby Town Council directed staff to explore regulations for STRs. The process involved reviewing how other municipalities regulate STRs and their impact on communities. The goal is to balance local tourism support with addressing concerns such as noise, garbage, and parking. Feedback collected from the community will guide the Town Council in making final regulatory decisions.

Oshawa

Short-term rentals are allowed in Oshawa but require a license and adherence to specific rules:

• Operators must obtain a municipal license.
• STRs must be located within the host’s principal residence.
• Rentals are capped at a maximum of 180 days per year, with no rental exceeding 28 consecutive days.
• Operators must designate a local contact who can respond to issues within an hour.
• Short-term rental insurance is required.
• The number of rentable rooms is limited to two, with a maximum of two occupants per room.
• No other rental use is permitted within a dwelling unit that contains an STR.
• A Visitor’s Code must be provided to renters to inform them of city by-laws.

Municipal Accommodation Tax (MAT)

Oshawa has implemented a 5% Municipal Accommodation Tax, effective since October 1, 2024. Operators must collect and remit this tax quarterly. Late payments incur penalties, and violations may result in fines ranging from $500 to $10,000 per day.

Pickering

Pickering is actively working on regulating short-term rentals to balance tourism with community concerns such as noise, garbage, parking, and safety. While regulations are not yet finalized, homeowners should monitor updates from the city.

Clarington

Clarington has noted the increasing presence of STRs but has not introduced specific regulations. The town has concluded that there is no immediate need to regulate STRs or add administrative burdens for enforcement.

Uxbridge

Currently, Uxbridge does not have specific regulations governing short-term rentals. Platforms like Airbnb and Vrbo operate in the area with minimal municipal oversight, with enforcement typically occurring in response to complaints.

General Guidance for Durham Region

For those considering short-term rentals in Durham Region, it is essential to consult with local planning departments for specific zoning regulations and restrictions. Each municipality has distinct rules, and operators should ensure compliance to avoid fines or legal issues.

Additional Regulations Affecting Short-Term Rentals

In addition to STR-specific regulations, Durham Region enforces various zoning and safety requirements that may impact short-term rental properties:

• Propane Fuel Storage & Handling: Certain zones allow propane facilities, but strict setback requirements apply.
• Dwelling Units Below Grade: Entirely basement-level STRs may be prohibited if they do not meet sewer level and elevation requirements.
• Setback Adjustments: New homes in residential zones must adhere to minimum setback requirements.
• Floodplain Development: STR properties in floodplains require approval from Conservation Authorities.
• Road Frontage Requirements: Buildings must be located on public roads, except in special circumstances.

Conclusion

Short-term rental regulations in Durham Region vary widely by municipality. While Ajax and Oshawa allow STRs with strict guidelines, Whitby currently prohibits them but is working on new regulations. Pickering, Clarington, and Uxbridge have less restrictive policies but may introduce future regulations.

Prospective STR operators should stay informed about local laws and comply with zoning, licensing, and tax requirements to operate legally and successfully. Consulting municipal planning departments can provide further clarity and help ensure compliance with evolving short-term rental policies.