Guelph Airbnb Short Term Rental Rules 2026

Quick Summary: Guelph STR Rules

Here is everything a Guelph property owner needs to know at a glance, sourced from By-law (2023)-20825 and the User Fees By-law (2024)-20928.

What Guelph's Bylaw Requires

By-law (2023)-20825 was passed by Guelph City Council on October 24, 2023 and took effect December 1, 2023. It added a new Schedule 20 ("Short-Term Rentals") to the City's existing Business Licensing By-law (2009)-18855. The bylaw applies to every short-term rental in Guelph, defined in § 1 as "temporary accommodation in all or part of a Dwelling that is provided for thirty (30) consecutive days or less in exchange for payment or service."

The bylaw does not apply to hotels, motels, inns, resorts, registered B&Bs, post-secondary residences, long-term care homes, retirement homes, homes for special care, or boarding, lodging, or rooming houses. Those are regulated under separate licensing or building code regimes.

Core Prohibitions (§§ 3 to 10)

• § 3: No person shall operate a Short-Term Rental without a Business Licence.
• § 4: The operator must be the Owner of a Principal Residence in Guelph, and the operator's name plus the Principal Residence address must be registered on the Business Licence.
• § 6: The Business Licence number must be prominently displayed at the premises and in every advertisement.
• § 7: Any prohibited STR advertisement must be removed within 24 hours of becoming aware of the prohibition.
• § 9 and § 37: The operator must maintain $2,000,000 in liability insurance covering STR activity.

Principal Residence Defined

The bylaw defines Principal Residence in § 1 as a Dwelling located in Guelph that is owned by a person, either alone or jointly with others, where the person "is ordinarily resident, makes their home and conducts their daily affairs." The bylaw lists specific evidence the City looks at: paying bills, receiving documentation related to identification, taxation, and insurance, driver's licences, income tax returns, medical plan documentation, vehicle registration, and voter registration.

Section 27 also deems each Operator to have only one Principal Residence at any time. You cannot claim two homes as your Principal Residence to stack STR licences across municipalities.

The Three-Property Rule

Guelph is more flexible than most Ontario cities with principal residence rules. Section 19 of Schedule 20 allows a single Business Licence to cover up to three STR locations under specific configurations. The bylaw defines three property categories:

• Principal Residence: Where you ordinarily reside in Guelph (defined in § 1, discussed above).
• Principal Additional Residence: A Dwelling with a separate municipal address situated on the same Premises as the Principal Residence. In practical terms, this is a coach house, basement suite with its own address, or a secondary dwelling unit on the same lot.
• Additional Residence: A separate Guelph Dwelling owned by the same person who owns the Principal Residence.

Under § 19, the allowed combinations are:

1. One STR location: can be any of Principal Residence, Principal Additional Residence, or Additional Residence.
2. Two STR locations: one must be the Principal Residence or Principal Additional Residence; the second can be any of the three categories.
3. Three STR locations: one must be the Principal Residence, one must be the Principal Additional Residence, and one must be an Additional Residence.

Section 21 reinforces that "the Principal Residence, the Principal Additional Residence and the Additional Residence shall all be owned by the same Owner." Section 17 prohibits issuing a Business Licence to a corporation. Section 18 caps the licence at one per person.

Application Process

Section 13 of Schedule 20 lists every document required for an initial Business Licence application. The list is long and front-loads the work, but it is the same list every applicant submits. Once issued, the licence is valid for one year (§ 22).

Documents and Information Required

• 13(a): Operator's name, phone number, and email address.
• 13(b): Municipal address of the operator's Principal Residence.
• 13(c): Municipal address of each STR location (note: § 20 requires each STR to have its own municipal address).
• 13(d): Floor plan showing square footage of the Dwelling, number of bedrooms in the STR, and the placement of every smoke alarm and carbon monoxide detector.
• 13(e): Description of which parts of the premises will be used for the STR.
• 13(f): Description of the type of building (detached, semi, townhouse, condo, etc.).
• 13(g): Number of off-street parking spaces available.
• 13(h): Guest information package (see § 35 to 36, covered below).
• 13(i): Detailed fire escape plan.
• 13(j): Proof of $2M liability insurance (see § 37).
• 13(k): Condo corporation approval, if applicable.
• 13(l): Proof of compliance with the Building Code Act, Fire Protection and Prevention Act, Property Standards Bylaw, and Zoning Bylaw.
• 13(m): Name and phone of an emergency contact available 24 hours during STR periods.
• 13(n): List of platforms used to advertise (Airbnb, VRBO, Booking.com, etc.).
• 13(o) and (p): Government ID and any other documentation showing the applicant is the Owner of the Principal Residence and of the STR location.
• 13(q): Criminal Record and Judicial Matters Check.
• 13(r): Signed indemnity in favour of the City.

Inspections (Schedule B of the Bylaw)

Initial applications require Zoning, Bylaw, Fire, and Building inspections. Renewals require Fire and Bylaw inspections. Inspections are billed separately from the licence fee. The 2026 initial inspection fee is $256. Section 45 requires inspections to be scheduled and conducted within 7 days of the City's request.

Guest Information Package (§ 35 and 36)

Every operator must provide guests with an information package both electronically at booking and in printed form inside the dwelling. The package must include:

• Contact info for the operator or a person available to receive guest communications during the stay.
• Instructions for the 9-1-1 emergency system.
• Name and address of the nearest hospital or emergency medical services (in Guelph, that is Guelph General Hospital at 115 Delhi Street).
• Non-emergency contact for the Guelph Police Service.
• Floor plan showing emergency evacuation routes and safety equipment locations.
• Notice of any video or audio recording systems on the premises.
• Solid waste disposal instructions, including collection day and composting and recycling guidance.
• Legal parking instructions for the premises and surrounding area.
• A copy of the operator's Business Licence and any conditions imposed on it.

Insurance Requirements (§ 37)

Section 37 sets out the minimum insurance for every Guelph STR operator. The exact language from the bylaw:

"Every Operator shall have and maintain Homeowners Insurance, Condominium Insurance, or Renters Insurance, as appropriate, that includes the following: (a) coverage for Short-Term Rental or home sharing activity that is appropriate for the nature of the Premises; (b) Host Liability or Commercial General Liability coverage of not less than Two Million Dollars ($2,000,000) inclusive per occurrence for bodily injury, death and damage to property including loss of use, that includes: blanket contractual liability, premises and operations liability, personal injury, owners and contractors protective coverage; broad form property damage; occurrence property damage; employees as additional insured, and cross liability and severability of interest to the satisfaction of the City." By-law (2023)-20825, Schedule 20, § 37

Standard homeowner's insurance almost never includes STR coverage. Most operators need to either add a rider to their existing policy or take out a separate STR-specific policy. Sections 38 and 39 require operators to provide proof of current insurance on demand and to submit proof of renewal before any policy expires.

4% Municipal Accommodation Tax

Guelph implemented a Municipal Accommodation Tax on February 28, 2022, effective for stays beginning September 1, 2022. The rate is 4% of the room rate, calculated before HST. The MAT applies to hotels, motels, B&Bs, and shared accommodation providers like Airbnb. Operators cannot opt out.

Stays of 30 consecutive days or more are exempt from the MAT, matching the STR definition in the bylaw. The MAT funds tourism marketing and infrastructure through the Guelph Chamber of Commerce, which serves as the Destination Marketing Organization. Airbnb has a collection and remittance agreement with the City for platform bookings, so for most platform hosts the MAT is collected automatically at checkout. For direct bookings, the operator collects and remits.

Enforcement and Penalties

Section 25 of Schedule 20 lays out the grounds the Issuer of Licences uses to refuse or revoke a licence. Operators should pay attention to two specific clauses:

"(a) The conduct, or past conduct, of the person affords the Issuer of Licences reasonable grounds to believe that the person has not or will not carry on the Short-Term Rental in accordance with applicable laws or with honesty and integrity." § 25(a)

"(h) The conduct of the Applicant or other circumstances afford reasonable grounds to believe that the operation of the Short-Term Rental by the Applicant has infringed, or would infringe, the rights of other members of the public, or has endangered, or would endanger, their health and safety." § 25(h)

These are broad standards. Repeated noise complaints, parties, parking issues, or property standards violations can all be cited as grounds for revocation. Section 41 also grants the City audit authority over operator books, records, transactions, and accounts. Section 32 requires operators to keep records of every concluded transaction for three years, including the number of nights rented, the nightly and total price charged, and any other information the City requests.

Key Fines

• Operating without a licence: $615 (referenced on the City's STR licensing page).
• Failing to remove a prohibited advertisement within 24 hours: Triggers further enforcement under § 7.
• Obstructing inspection: Itself a violation under § 44.
• Insurance lapse: Section 10 prohibits failing to keep the policy in force; this can trigger revocation under § 25.

License Revocation

Section 12 prohibits anyone whose Business Licence was refused or revoked in the prior year from applying or renewing. A revocation locks you out of Guelph STR operation for at least 12 months, possibly longer depending on whether you re-qualify under § 25. This is why operators should treat the licence as a privilege and operate strictly within the rules.

Guelph vs Neighbouring Cities

Guelph sits between Waterloo Region and the GTA, so most comparisons are with Kitchener, Waterloo, Cambridge, and the GTA suburbs. Here is how the rules stack up:

Compared to Toronto, Guelph is friendlier in two ways: there is no annual night cap, and a single licence can cover up to three properties. The downside is the front-loaded fees ($221 + $256 = $477 in year one) and the bylaw's strict ownership rule that excludes corporate landlords and pure investment properties owned by non-resident operators.

Best Guelph Neighbourhoods for Airbnb

Guelph's tourism and visitor mix is unique: University of Guelph campus visits, hockey tournaments, agricultural conferences, business travelers visiting Linamar and other manufacturers, and a small but steady leisure flow from people heading to KW or Stratford. Some neighbourhoods perform much better than others.

Downtown Guelph (Old University and St. Patrick's Ward)

Walkable to restaurants, the Sleeman Centre, the River Run Centre, and the GO Station. Visitors going to a concert or hockey game at the Sleeman Centre, or attending an event at the River Run Centre, often book downtown. Limited parking is the constant challenge.

Near the University of Guelph

Family visits, parent weekends, graduation, and convocation drive consistent demand. The University also hosts research conferences and CFRU events year-round. STRs within walking distance of the campus on Stone Road East, College Avenue, and Gordon Street book solidly during the academic year.

Exhibition Park and the Ward

Residential, walkable, and minutes from downtown. These neighbourhoods attract families and small groups who want a quieter base. Good for 2 and 3 bedroom homes serving extended families.

South End (near Stone Road Mall and the Hanlon)

Easier parking, closer to the 401 and Highway 7, and walkable to Stone Road Mall. Less expensive on a per-night basis but generates steady mid-term demand from medical professionals and corporate travellers visiting Linamar, Sleeman Brewery, and the Hanlon Creek Business Park.

Income Potential

Guelph is a steady, not spectacular, market. Travelers come for specific reasons (the University, business visits, events) rather than as a primary leisure destination. That makes Guelph attractive for operators who want consistent mid-week bookings rather than peak weekend revenue.

Realistic Monthly Revenue Estimates

Mid-term (28 to 30 night) bookings can outperform pure short-term in Guelph because of the steady flow of contract workers, medical residents at Guelph General, and visiting academics at the University. A mid-term-focused operator can run an STR licence and also accept 30+ night stays (which fall outside the bylaw entirely) for additional flexibility.

Frequently Asked Questions

Sources

• By-law (2023)-20825 (Schedule 20 to (2009)-18855) Short-Term Rentals (PDF)
• City of Guelph, Short-Term Rental Licensing page
• User Fees By-law (2024)-20928, Table 47 (2026 STR fee schedule)
• City of Guelph, Municipal Accommodation Tax page
• Licensing contact: 519-822-1260 ext. 2551 or licensing@guelph.ca

This article is for informational purposes only and does not constitute legal advice. Bylaw and fee details change. Always verify current rules and fee schedules directly with the City of Guelph before making hosting decisions. Article last reviewed against the bylaw text on May 20, 2026.