Global Regulatory Notes (7)

Keep a pulse on global regulatory trends. Featuring critical updates and recent news on short-term rental policies around the world, we highlight key developments shaping the industry. 🌐

Canada

Winnipeg, Manitoba

Winnipeg’s short-term rental bylaw, introduced in 2023 to regulate platforms like Airbnb, is falling short in buildings like Glasshouse Skylofts where 29% of units now operate as STRs despite city rules.

Although the policy mandates that only primary residences can be rented short-term, owners grandfathered in under an ownership cutoff date are exempt frustrating residents who hoped for stronger limits.

Community advocates and some city councilors are calling for bylaw updates that would restrict non-resident ownership and allow caps per building, while host groups claim compliance and highlight tourism benefits.

Kelowna, BC

Kelowna is once again processing business license applications for short-term rentals following a recent council vote to align its local bylaws with new provincial regulations.

After reviewing existing rules and considering the city’s strong long-term rental vacancy rate, staff recommended changes that now permit short-term rentals in a principal residence and legally in secondary suites or carriage houses, provided operators secure both a city business license and register with the province.

Kamloops, BC

Kamloops is moving forward with zoning and business licence bylaw changes to finally permit and regulate short-term rentals, which are currently not allowed or defined under city rules.

If approved, the new regulations would allow rentals under 30 days in a host’s principal residence, with bans on properties used as care homes or daycares. Hosts must get a $67 annual business licence, sign a good neighbour agreement, and register with the province by June 1, uploading the actual licence by August 1.

Ladysmith, BC

Ladysmith is preparing for B.C.'s May 1 short-term rental crackdown with new provincial rules requiring hosts to register and hold a business licence or face delisting.

Locally, STRs are only allowed in select zones, but about 25 of the town’s 50 listings operate illegally. To offer relief, council introduced Bylaw 2205 to permit a limited number of out-of-zone rentals via Temporary Use Permits, though approvals won’t be in place by the deadline. Ladysmith hasn’t opted into the province’s principal residence rule, but non-compliant STRs will still face removal if not registered in time.

Barrie, Ontario

Barrie city staff will explore a complaint-based enforcement model for short-term rentals (STRs) with council directing a report on options tied to zoning and the Official Plan.

Tourism Barrie’s Kathleen Trainor supports this cost-effective approach, calling for escalating fines and penalties for repeat offenders. Though only a handful of STR complaints were recorded—mostly tied to two properties—the city is seeing year-over-year growth in STRs, with over 500 active listings.

Mapleton, Ontario

Mapleton council has voted to maintain the status quo on short-term rental (STR) regulation choosing not to introduce a licensing bylaw as proposed by staff.

Instead, council endorsed allowing STRs only in a principal residence under the township’s zoning bylaw with any other STRs requiring zoning amendments. Citing limited known issues and a desire to avoid over-regulation, councillors expressed skepticism about the need for stricter rules, suggesting existing bylaws are sufficient to handle concerns. A formal zoning bylaw update with a definition for STRs will return for approval in the future.

Ireland

Ireland’s Cabinet is set to review a controversial Short-Term Lettings Bill that would cap STR usage at 90 days per year for homes in towns and cities with populations over 10,000 aiming to free up long-term housing.

The proposal has drawn criticism from rural representatives who argue it could harm tourism-reliant communities. Critics say assumptions about converting 12,000 STR units into long-term housing are unrealistic and overlook the role of STRs in hosting tourists and contract workers.

Marseille, France

Marseille has reduced its short-term rental limit from 120 to 90 nights per year in a push to shift properties into the long-term rental market, sparking a sell-off among landlords.

Mayor Benoît Payan also cracked down on the use of Airbnb-style lockboxes and floated a requirement for hosts to purchase a second home for long-term lease. As a result, 220 out of 1,500 STR properties were recently listed for sale.

🌐 Emerging Global Trends

Around the world, governments are tightening short-term rental rules to address housing shortages and preserve community stability. From Europe to Canada, emerging policies reflect a growing focus on limiting investor activity, enforcing principal residence use, and reclaiming long-term housing stock.

What this means:

🏠 Cities Tighten Definitions and Enforce Principal Residence Requirements: Across Canada and parts of Europe, municipalities are increasingly anchoring short-term rental (STR) regulations to the concept of “principal residence” in an effort to limit the commercialization of housing stock. Winnipeg’s struggle to enforce primary residence rules due to grandfathered exemptions, Kamloops’ new bylaw to legalize STRs only in lived-in homes, and Mapleton’s choice to restrict STRs to principal residences reflect a clear trend toward preserving housing for locals. Similarly, Kelowna is aligning with B.C.'s provincial framework that prioritizes principal residence use, reinforcing this shift toward localized, residence-based compliance.

📒 Divergent Approaches on Enforcement and Permitting: Municipalities are experimenting with varying degrees of enforcement and permitting models—ranging from complaint-based systems to more rigorous license and registration processes. Barrie, Ontario is leaning into a complaint-driven enforcement model with escalating penalties, while Kamloops and Ladysmith are opting for more proactive systems that require business licenses, provincial registration, and good neighbour agreements. These varied approaches reflect a broader debate on administrative burden versus regulatory effectiveness in managing STR growth.

🧢 Caps and Crackdowns to Reclaim Housing Supply: Amid affordability crises, several governments are imposing stricter caps or night limits on STRs to free up housing. Marseille and Ireland are both pursuing 90-night annual caps, with Marseille already seeing a wave of landlord sell-offs. Meanwhile, Ladysmith is preparing for British Columbia’s May 1 enforcement deadline by introducing stopgap measures like temporary use permits. This tightening suggests a coordinated effort to rebalance the housing market by curbing short-term rental volume, especially in urban areas facing housing pressures.