Short-term rental rules in Tobermory, Ontario

The rules today

Who can host	Licence must be held by the registered owner (18+) of the dwelling; owner may appoint a Property Manager/Responsible Person living within one hour and available 24/7. Licences are not transferable. STA means an ENTIRE primary private residential dwelling rented for under 30 nights; bed and breakfasts, hotels, motels, lodges and commercially zoned accommodation are excluded (B&B has a separate licensing program/page). Accessory buildings (e.g. bunkies) and Additional Residential Units cannot be rented as STAs; only one STA per property. Source
Where it is allowed	Only properties zoned R1, R2, RU1, RU2, DC and C1-a (By-law s.6.5; Schedule A maps). Outside permitted zones a licence is possible only for STAs lawfully operating immediately before the by-law came into force (sworn statement and proof of prior rentals), and that licence carries a Holding Zone: STA ceases on change of owner. Class C licences are no longer issued (and not in RU1, RU2, C1-a for new properties). Source
Limits	Municipality-wide cap of 400 licences; no new licences until the count falls below 400, with a waiting list. Class A and B rentals are limited to 180 rental days a year, and only approved bedrooms may be rented. The by-law's definition caps occupancy at 10, while its Schedule C table lists 8 (Class A and B) and 12 (Class C), so confirm your limit with the municipality. No parties, fireworks or outdoor speakers; owner contact details must be posted inside and the property manager's contact at the end of the laneway. Source
Licence process	Apply online through Cloudpermit (owner or authorized agent with Owner Authorization Form). Documents: ID, proof of ownership, insurance, site and fire-exit plans, septic proof, Renter Code of Conduct, Property Manager consent, WETT certificate if applicable. Staff review, then inspection; after a pass a bill is issued and the licence is generated once paid. Licence valid 1 year (365 days) from issue; renewal keeps the same number if submitted within 1 month of expiry, otherwise a new application is needed. Reinspection every 3 years per municipal page. Licence number must appear in all advertising (s.3.15). Complete licensing expected within two months of application (Schedule C). Anyone denied/revoked in last 12 months cannot register or renew. Licences listed in a public registry. Source
Fees	By-law 2025-34 Schedule C: Class A & B registration $500, renewal $500; Class C registration/renewal $1,500; STA inspection $500; re-inspection $250; complaint investigation fee Class A/B $300 (s.13.3 separately says $1,000 for a second registered complaint); appeal fee $1,000 (s.9.20). The municipal STA page lists registration/renewal $500 (A/B), $1,500 (C), inspection $500, reinspection $250. Source
Taxes	A 4% accommodation tax applies to stays of 30 days or less. The municipality's own pages differ on when it started and how it is collected, so confirm the mechanics with the municipality. Source
Penalties	Part I Provincial Offences set fines (order effective 2025-07-31): $900 for operating unregistered, advertising an unlicensed STA, advertising without licence number, renting more than one STA per property, or obstructing inspection; $700 for exceeding max rental days; $500 refusing service animal; $400 for exceeding occupancy limit, renting non-approved room, failing to update information/emergency/911/exit-diagram info to guests; $300 for transaction-record failures. On conviction by-law allows up to $100,000 per offence, plus a special fine exceeding revenue gained and up to $10,000 per day. Licence automatically revoked after three registered complaints in a year (or an unresolved complaint); revoked licence cannot be reissued to the location for 365 days. Anonymous complaints are not processed per municipal page. Source

What changed in Tobermory

• July 31, 2025

  Set fines under the Provincial Offences Act approved for By-law 2025-34

  What hosts should do: Ensure ads carry the licence number.

  Source

• May 26, 2025

  By-law 2025-34 passed, replacing the earlier 2021-84 framework (as amended 2023-49, 2024-47): cap 400, no new Class C licences, 180-day limit for Class A/B, laneway contact posting

  What hosts should do: Confirm your licence class, rental-day count, laneway contact sign and renewal timing.

  Source

Sources

• By-law 2025-34 Short Term Accommodation By-law (passed 2025-05-26) with set-fine order 2025-07-31 (page updated By-law 2025-34, 2025-05-26; set fines effective 2025-07-31)
• Short-Term Accommodations (municipal page) (page updated no date shown (footer 2026))
• Municipal Accommodation Tax page (page updated no date shown)
• Short-Term Accommodations (develop section) (page updated no date shown)
• STA Application Guidebook (page updated not checked)

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.