Cottage Owners Criticize STR Regulations for Plummeting Values

Cottage owners in Tiny Township are expressing concern that new regulations governing short-term rentals (STRs) are contributing to declining property values and a slowdown in sales. Residents like Susan Barbi argue that the financial burden of compliance with municipal bylaws is forcing owners to reconsider the viability of their properties.

Barbi, who purchased a beachfront cottage near D’aoust Bay a decade ago, has experienced firsthand the challenges posed by these new rules. She and her husband intended to rent out their cottage when not in use but have faced increasing obstacles. “The reason cottage prices have gone down and there is a lot of inventory on the market is because of the rules imposed on owners regarding short-term rentals,” she stated.

Barbi highlighted that the regulations, which she describes as “a sea of red tape,” include significant costs such as a $1,750 annual licensing fee, a $300 electrical inspection, and increased liability insurance. The couple has been renting their property to families seeking a peaceful getaway, but the restrictions have made it increasingly difficult to maintain their income stream.

The situation worsened this year when the township reduced the number of STR licenses from approximately 900 to just 300. Barbi noted that when they applied for their license this year, they discovered that only 150 applications were being accepted. “We lost three weeks of potential rental income waiting for the township’s license to be approved,” she explained, emphasizing the financial strain this has placed on them.

In response to these concerns, David Evans, Mayor of Tiny Township, acknowledged that STR regulations can be challenging for property owners. He explained that the bylaws were developed following extensive public consultations to address community concerns regarding noise, parking, and safety. “My goal, and council’s goal, has always been to find a fair balance between the needs of property owners who wish to rent their properties and the rights of neighbours to enjoy their homes without disruption,” Evans stated.

Despite the mayor’s assurances, Barbi remains skeptical. She argues that the municipality’s regulations are more about generating revenue than ensuring safety. “They voice their concerns under the guise of safety issues but all it is, is a money grab,” she said. The couple’s situation reflects a broader trend where many cottage owners are struggling to cope with the financial pressures associated with these new regulations.

Barbi also pointed out that, contrary to popular belief, owning a cottage does not equate to wealth. “In our situation, it is a lot of hard work and a great financial responsibility to own a cottage,” she explained. The couple must travel two hours to maintain the property and prepare it for renters, which adds to their costs.

Mayor Evans reiterated that the STR licensing program is entirely self-funded, with fees from STR operators covering all associated costs. He emphasized that no property tax dollars are used for the program, aiming to dispel concerns about financial pressure on the community at large. “Our bylaw does not prohibit short-term rentals; it simply establishes licensing, safety and compliance standards,” he noted, asserting that the bylaw has been successful in Tiny.

As the local real estate market continues to adjust, Evans acknowledged that various factors influence property sales, including interest rates and economic conditions. While some owners may choose to sell for different reasons, he has not seen definitive evidence that STR regulations alone are driving property values down.

Barbi and others in the community hope that their experiences will prompt a reevaluation of the current regulations. “If we don’t rent it out, we honestly would have to sell it,” she warned, underscoring the financial implications for cottage owners struggling with new compliance costs. The future of cottage ownership in Tiny Township remains uncertain as the local government navigates the complexities of balancing regulation with the needs of residents.