Blue Mountains Airbnb Short Term Rental Rules 2026

What Counts as a Short Term Rental?

The Town defines an STR by both length of stay and commercial purpose:

"Short Term Rental Property Unit" or "STRPU" means a Building or structure, or any part thereof being used for the habitation of tenants of that temporary residence, lodging or occupancy by way of concession, permit, lease, License, rental agreement, or similar commercial arrangement for any period less than thirty (30) consecutive calendar days, throughout all or any part of a calendar year. By-law 2021-70, Schedule C and Schedule D, Definitions

The 30 day cutoff is the legal trigger: stays of 30 nights or more are not regulated by this bylaw and the property does not need an STR license to host them. Mid term rentals (28 to 30 plus nights) sit just outside the regime, which is part of why some operators in restricted zones pivot to that model.

The Exception Area: Where the Bylaw Lets You Operate

This is the most important section in the entire bylaw for prospective hosts:

"Exception Area" means a specific area of the Town as designated in Town's Zoning By-law. By-law 2021-70, Schedule C, Section 1.0 (Definitions)

In plain terms, the Exception Area is the chunk of the Town (covering the Blue Mountain Resort village and certain commercial / resort residential zones) where short term rental is recognized as a permitted use under the underlying Comprehensive Zoning By-law 2018-65. If your property is:

• Inside the Exception Area: you apply for a Type A license, the most permissive class
• Outside the Exception Area: you apply for a Type B license, but only if the Town's Zoning By-law itself permits short term rental at your address

This is the zoning trap. A Type B license layers on top of zoning permission. If your residential zone forbids the use, no Type B license will be issued, regardless of how complete your application is. Always confirm zoning before investing money in fire inspections or insurance certificates.

Four License Types

Schedule A of By-law 2021-70 establishes four classes:

Type C is closed to new applicants. It applies only to operations that were licensed before the 2021 bylaw and are in zones where the Town has since stopped permitting short term rental. New Type C licenses are not issued.

Maximum Occupancy Formula

Both Type A and Type B use the same headline formula:

The Maximum Occupancy within a dwelling unit for a Type A License shall be calculated as follows: a) two (2) Persons per Bedroom; b) and four (4) additional Persons. By-law 2021-70, Schedule C, Section 2.4

Worked examples:

The Town can lower this number under Section 2.5: if your approved Parking Management Plan does not have enough spaces for the calculated occupancy, or if a fire inspector identifies an occupant load issue, the License Issuer reduces the cap before issuing the license.

For Type B (outside the Exception Area), the cap is the lower of the formula above OR whatever the Zoning By-law permits for that property. So the Zoning By-law can be more restrictive but never more permissive than the formula.

Section 2.4(a) of Schedule B (the demerit table) makes overcapacity stays expensive: 3 demerit points for the first violation between 11 PM and 7 AM, jumping to 8 demerit points on a second offence.

$2,000,000 Insurance Requirement

This is one of the highest mandatory coverage limits in Ontario STR bylaws:

proof of insurance by way of certificate of insurance showing a minimum limit of two million dollars ($2,000,000) in commercial general liability for a rental property for the term of the License with an endorsement that notice in writing at least thirty (30) days prior to cancellation, expiration, or variation thereof will be given to the Town by the insurance underwriter. By-law 2021-70, Schedule C, Section 2.1(c)

Three things to know:

• Commercial general liability: Standard homeowner insurance does not cover commercial short term rental. You need a dedicated STR liability policy or a homeowner's policy with an STR endorsement that meets the $2M limit. Read our Ontario STR insurance comparison for provider options.
• 30 day notice clause: The Town requires your insurer to notify them in writing 30 days before any cancellation, expiration, or variation. Not all standard STR policies include this endorsement automatically: ask explicitly when binding coverage.
• Auto suspension on lapse: Section 6.1 states that if your insurance is cancelled, expires, or is otherwise terminated, the license is automatically suspended on the same date, with no hearing. You cannot operate again until coverage is reinstated.

Responsible Person: 30 Minute Response Window

Every Type A and Type B license requires a designated Responsible Person:

A Responsible Person and/or Rental or Lease Management Program Representative, as applicable, shall be available by email and telephone, 24 hours a day, 7 days a week to attend a licensed Premise within ½ hour of being contacted or notified by the Town or an authorized agent or representative of the Town or an Officer. By-law 2021-70, Schedule C, Section 2.9

Half an hour to physically arrive on site is tighter than most Ontario municipalities. Practical implications:

• The Responsible Person must live, work, or stay within roughly a 30 minute drive of the property: realistically Collingwood, Thornbury, Craigleith, or Blue Mountain itself
• You can name a property manager (a "Rental or Lease Management Program Representative") instead of a friend or family member: this is what most out of town owners do
• Failing to have a reachable Responsible Person is 5 demerit points per occurrence under Schedule B Item 3

Fire Inspection and Electrical Safety Certificate

Two technical certificates are required at the application stage:

Fire Chief inspection (Section 2.1(a)):

An inspection approved by the Town's Fire Chief dated within the previous 2 years stating the Premises are in compliance with the Fire Protection and Prevention Act, 1997, S.O. 1997, c.4, as amended, and its regulations and the maximum occupancy. By-law 2021-70, Schedule C, Section 2.1(a)

Licensed Electrician certificate (Section 2.1(e)):

certificate from a Licensed Electrician dated within the previous 90 days of making applications for a License stating the Premises are in compliance with the Electrical Safety Code. By-law 2021-70, Schedule C, Section 2.1(e)

You also need to post fire safety instructions inside the premises, plaqued or framed, depicting the location of every bedroom, smoke alarm, carbon monoxide alarm, fire extinguisher, and exit (Section 2.2(d)). A single Fire Code conviction is 15 demerit points under Schedule B Item 18: that alone is enough to revoke a license. Fire compliance is the single largest enforcement risk.

NoiseAware (or Equivalent) Monitors Required

The Blue Mountains is one of the few Ontario municipalities that mandates electronic noise monitors:

ensure that at least one (1) indoor NoiseAware monitor, or equivalent noise detection system, and one (1) outdoor NoiseAware monitor, or equivalent noise detection system, is fully operational and monitored at all times. By-law 2021-70, Schedule C, Section 2.7(j)

"Equivalent noise detection system" leaves room for competing brands (Minut, Roomonitor, Party Squasher, etc.), as long as they are operational and monitored. Operating without a functioning system is 3 demerit points under Schedule B Item 13. Two indoor / outdoor monitors plus monitoring service runs roughly $250 to $400 per year per property.

Hot Tub and Pool: 7 AM to 11 PM Only

Section 2.7(k) sets quiet hours for outdoor amenities:

not permit the use or occupation of an outdoor hot tub and or outdoor pool outside the hours of 0700 and 2300 exclusively. By-law 2021-70, Schedule C, Section 2.7(k)

And Section 2.7(l) requires hot tubs to be covered and secured when not in use, and pools to be properly secured at all times. Allowing late night hot tub or pool use is 5 demerit points per occurrence (Schedule B Item 14), and failing to secure is another 5 (Schedule B Item 15).

Section 2.7(m) prohibits all outdoor fires except an approved barbecue for cooking food, unless you have a formal permit from The Blue Mountains Fire Department. Fire pits, even on private decks, are not permitted by default. Lighting an unauthorized fire is 5 demerit points (Schedule B Item 16).

Demerit Points: 15 = Revocation

Section 7.1(j) of By-law 2021-70 establishes the threshold:

the Applicant or Licensee has accumulated fifteen (15) demerit points against the Property in accordance with Section 11.7 By-law 2021-70, Section 7.1(j)

Selected demerit values from Schedule B (the full table is in the bylaw PDF):

The math is unforgiving: a single Fire Code conviction or an Order disobeyed plus one minor issue puts you at revocation in one shot. Two noise complaints with convictions equal 15 points (5 plus 10).

Fees and 2 Year License Cost

From the Town's current Fees and Charges By-law (referenced in Section 12 of 2021-70):

Insurance ($2M commercial general liability) typically adds $400 to $1,200 per year. Add NoiseAware (or equivalent) at roughly $250 to $400 per year, plus the licensed electrician inspection ($150 to $300 per visit). Annualized, the regulatory overhead at a Blue Mountains STR is roughly $2,000 per year before any property specific costs.

Section 2.3 of Schedules C and D states the 24 month term is a fixed period from the date of issue. The Town can extend on its sole discretion, prorated, but the default is biennial renewal.

4% Municipal Accommodation Tax

The Town levies a 4% MAT on all transient accommodation:

• Rate: 4% of the room rate (accommodation portion only)
• Stays under 30 nights: tax applies
• Stays of 30 nights or more: tax does not apply (mid term territory)
• Excluded from the base: cleaning fees, food and beverage, internet and phone, meeting room rentals, room services
• Applies to: hotels, motels, B&Bs, short term rentals, commercial resort units, lodges, inns

The Town transitioned MAT remittance and STA licensing to a Cloud Permit portal as of April 20, 2026. If you list on Airbnb or Vrbo, those platforms collect and remit MAT on your behalf for the bookings they handle: confirm that on your specific listing in the platform's settings before assuming it is automatic.

Staying Compliant in The Blue Mountains

Cottage country STR enforcement is more aggressive than urban Ontario. The Town has a dedicated STA enforcement function and neighbours actively report. Here's how to stay clean:

• 1 Confirm zoning before paying any fees. Call the Planning Department with your address and ask whether short term rental is a permitted use. The $80 Pre-Screening exists to catch this; you can save it by checking yourself.
• 2 Get fire and electrical certificates done early. The Fire Chief inspection is valid 24 months: do it first since renewal cycles match the license term. The Licensed Electrician certificate has a 90 day window: get it done last, just before applying.
• 3 Hire a local Responsible Person. A 30 minute response window means out of town owners need a property manager or local contact who can physically arrive. Friends often cannot meet this in winter weather.
• 4 Install monitors before listing. Indoor and outdoor noise monitors are mandatory. Order before your fire inspection so the inspector sees them in place: this avoids re-inspection fees.
• 5 Code the hot tub and pool to lock at 11 PM. Smart hot tub covers and pool gate timers eliminate a 5 demerit point risk per occurrence.
• 6 Carry the license number on every listing. Failure to advertise with the license number is 3 demerit points. Add it to Airbnb, Vrbo, your direct booking site, and any social media listings.
• 7 Track your demerit balance. 15 points equals revocation. After any complaint, request the demerit point summary from the Town in writing so you know where you stand.
• 8 Renew on time. The 2 year term ends on a specific date. Late renewal adds $110 and operating with a lapsed license is a separate violation.
• 9 Maintain insurance with the 30 day notice endorsement. Section 6.1 auto suspends a license the instant insurance lapses. Calendar reminders and an insurance broker who specializes in STR coverage are worth the investment.

Official Town of The Blue Mountains Resources

Always cross check current rules with official sources before making host decisions:

Common Questions From Blue Mountains Hosts

This article quotes verbatim from By-law 2021-70 of The Town of The Blue Mountains and is current as of May 2026. The Town periodically amends fees and operational rules: confirm current values directly with the Town before making investment decisions. This article is informational and does not constitute legal advice.