Short-term rental rules in Niagara-on-the-Lake, Ontario

The rules today

Who can host	Only the registered owner or lessee (a director if a corporation), a lessee of commercially zoned property, or an agreed purchaser may apply and hold a licence. Licences cannot be transferred. B&B and Country Inn must be run full-time by the licensee. Source
Where it is allowed	By-law 2025-032 covers B&B, Cottage Rental (up to 3 guest bedrooms), Villa (4+ bedrooms), Country Inn and Vacation Apartment (unit above a business on commercial property). The licensed address must be the principal dwelling; only one STR per single detached dwelling if it is the primary residence; accessory dwelling units are not eligible. Dwelling must have had occupancy as a single detached dwelling for 8 years (Cottage/Country Inn/Villa) or 4 years (B&B); must front a public road or the Niagara Parkway; Country Inn and Villa need prior planning approval (site-specific zoning etc.). Specific permitted zones are not listed in the by-law or on the STR web page; Zoning By-law governs. Source
Limits	Maximum guests: 2 per bedroom plus 2 additional guests, sleeping in the designated bedrooms. No events or commercial activity. Parking must meet the Zoning By-law plus one space per registered vehicle, and on-street parking does not count. The owner or property manager must respond to a complaint within 45 minutes. In a May 27, 2025 news release Council also said it would limit Cottage Rental and Villa licences to existing properties; that limit is not in the by-law text, so confirm it with the Town. Source
Licence process	Apply to the Town (online form at notl.com/form/short-term-rental; cannot be saved mid-way) with site plan, floor plan, insurance, ESA certificate, Good Neighbour/acknowledgement forms; pre-licence Fire and By-law inspection required. Licence expires Dec 31 of the fourth year; renewal must be submitted before expiry or counts as a new application. New applications received Nov 1 - Dec 31 are issued the following year. Page says process may take up to ten weeks. Advertising must include the Town licence number (s.5). Licensee must make a copy of the licence, Noise By-law, Public Nuisance By-law, floor plans and Renter's Code of Conduct available to guests (s.63). Fire inspection at least every 2 years (s.73). $2,000,000 liability insurance naming the Town as Additional Insured (s.28). Licences expiring Dec 31, 2026 must be renewed before then or they are invalid. Source
Fees	New application $800; renewal application $600 (2026 application page). Fees are non-refundable; the by-law says the annual fee comes from the Annual User Fees and Rates schedule, not prorated. Source
Taxes	A Town accommodation tax applies to stays of 28 days or less, including short-term rentals, and operators remit it quarterly. The Town's page shows 3% from January 1, 2024 and says it will move to 4% on January 1, 2025, but does not confirm the change took effect. Confirm the current rate with the Town. Source
Penalties	Set fines (Schedule A, By-law 2025-032): operating without licence $1,000; advertising without licence $1,000; advertising without licence number $100; failing to display s.63 documents $100; not responding to complaint within 45 min $500; no guest registration $250; exceeding occupants $500; events $1,000; B&B/Country Inn not owner-occupied $1,000. Offences are continuing, per day. Licence may be revoked/suspended/conditioned for any by-law breach, ignoring a notice within 72 hours, or 3+ complaints about distinct events per calendar year; 12-month wait to reapply after revocation. Administrative penalties also possible. Source

What changed in Niagara-on-the-Lake

• December 31, 2026

  Licences expiring Dec 31, 2026 must be renewed ($600) before expiry or become invalid

  What hosts should do: Submit renewal with all documents before Dec 31, 2026 (allow up to ten weeks).

  Source

• May 27, 2025

  By-law 2025-032 passed (repeals 4634-13)

  Council also approved limiting Cottage Rental and Villa licences to existing properties with none issued to replace expired ones, and directed staff to discuss density limits.

  What hosts should do: Existing licensees: renew before expiry; lapsed licences may not be replaceable.

  Source

• December 10, 2024

  Council paused issuing new STR licences for Cottage Rentals, Country Inns, Vacation Apartments and Villas pending staff analysis

  What hosts should do: Do not expect to get a new licence in these classes; confirm current status with str@notl.com.

  Source

Sources

• Short Term Rentals (Town page) (page updated not stated (footer (c) NOTL 2026))
• By-law 2025-032 Short Term Rental By-law (passed May 27, 2025; repeals 4634-13) (page updated By-law dated 2025-05-27; file uploaded 2025-12 per URL)
• By-law directory page for 2025-032 (page updated not stated)
• 2026 STR application process (page updated not stated)
• Municipal Accommodation Tax (page updated not stated)
• News release: May Council Update (page updated 2025-05-27)
• News release: December Council Update (pause on new licences) (page updated 2024-12-10)

General information for hosts, not legal or tax advice. This page summarises the official sources above as of November 12, 2026. Check the source and your town before you act. See an error? Tell us and we will re-check it.