City announces new Short-Term Rentals By-law

HAMILTON, ON – To meet the requirements of a new City by-law, starting December 1, 2023, Short-Term Rental Operators and Brokers will be required to apply for a municipal business licence to legally operate a short-term rental in their own principal residence.

Enforcement of the new Short-Term Rental (STR) by-law will begin January 1, 2024. This by-law introduces new licensing, fees, registration and inspection requirements, including limiting short-term rentals for operators and hosts to only their principal residence.

The STR by-law reflects our commitment to balance between the needs of the City of Hamilton and the evolving changes in travel and tourism, as well as meeting the City’s objectives of increasing housing supply, while also aiding homeowners with escalating housing costs.

For further information on the Short-Term Rentals Bylaw, its implementation and how to apply, please visit www.hamilton.ca/ShortTermRentals.

Quick Facts

• The City of Hamilton’s Short-Term Rental By-Law was ratified by Council in January 2023, with enforcement commencing on January 1, 2024, and includes:
  • allowing residents with a licence to rent their own principal residence (this includes legal laneway homes, secondary suites) for short periods (no more than 28 nights consecutively)
  • principal residence requirements:
    • a place where a person lives and designates as their principal residence on government records;
    • a person can only have one principal residence;
    • a corporation cannot have a principal residence;
  • commercial operators would not be permitted to operate a STR.
• As of November 2022, there were 1,250 active STR listings in the City of Hamilton (per AirDNA data)
  • 1,000 (80%) are entire homes/apartments
  • 238 (19%) are private rooms within a residence
  • 12 (1%) are shared rooms.
• Fees are based on the cost of administering and enforcing the regulations, and to be revenue neutral, as well as based on cost recovery.