Orillia regulates short-term rentals under Chapter 730 of the Municipal Code, effective January 1, 2024. The 2026 fee is $680 per bedroom, capped at $2,040 per property. There is a hard cap of 150 licenses city-wide. Investment properties are allowed (no principal residence rule), which is rare for regulated Ontario cities.
Orillia is a regulated market with real compliance requirements, but it is one of the most investor-friendly licensed cities in Ontario. The combination of no principal residence rule, no night cap, and strong tourism demand from Lake Couchiching, Casino Rama, and the Trent-Severn Waterway makes it a target market, provided you can secure one of the 150 available licenses.
Quick Summary: Orillia STR Rules
Here is everything a property owner needs to know at a glance:
The 150 License Cap
Orillia caps total short-term rental licenses at 150 city-wide. This is the single most important factor for anyone considering an Orillia STR. Once 150 licenses are issued, new applicants join a waitlist and cannot operate until existing licenses lapse or are revoked.
Unlike some cities that tie their caps to existing operator counts (grandfathering everyone already in the market), Orillia's cap is a fixed maximum. The cap was set this way specifically to limit STR growth and protect long-term housing supply.
What This Means for Investors
If you are considering buying a property in Orillia for short-term rental purposes, you need to confirm license availability before you close. Call the City's licensing department and ask how many licenses are currently issued and whether new applications are being accepted. Applying before the cap fills is the only way to secure a license.
Resale Considerations
A licensed Orillia STR property is worth more than an unlicensed equivalent because the license cannot be easily obtained once the cap is full. When selling, the license typically transfers with the property (subject to new owner meeting requirements). This creates a potential resale premium for licensed properties.
The Cap Fills Unpredictably
There is no published waitlist position or public count of issued licenses. The only way to know if you can get a license today is to apply. Delaying your application by a few months could mean the difference between operating legally and being shut out of the market entirely.
New 2026 Fee Structure
Orillia's license fee structure changed for 2026. Previously, every property paid a flat $2,040 regardless of size. This flat fee drew sharp criticism from operators, with some calling it "atrocious" in public comments to council. The new per-bedroom structure is more equitable.
2026 Fee Breakdown
The per-bedroom structure means smaller properties are dramatically cheaper to license. A 1-bedroom downtown condo costs $680 per year instead of $2,040. A 2-bedroom home costs $1,360. Only 3-bedroom and larger properties hit the $2,040 cap.
Additional costs to factor in: pre-license inspection fees, fire inspection fees, property standards inspection charges, and the $200 discretionary inspection fee if bylaw officers investigate a complaint at your property.
License Requirements
Getting an Orillia STR license requires meeting several requirements. Here is the full checklist.
Documents Required at Application
- Completed application form with property details and owner information
- Proof of property ownership (tax bill, deed, or title document)
- Certificate of Insurance showing liability coverage that explicitly includes short-term rental use
- Site diagram showing parking locations, property boundaries, and emergency exits
- Floor plan identifying bedrooms, bathrooms, and egress routes
- Code of Conduct that will be provided to guests
- Responsible person contact (local, reachable 24/7)
- HST number if your annual revenue exceeds $30,000
- Condo board approval if the property is in a condo corporation
Additional Requirements by Property Type
- Wood-burning appliance: WETT inspection report required
- Septic system: Proof of septic pump-out within last 5 years
- Pool or hot tub: Safety equipment and signage per Ontario regulations
Inspections Required
Every Orillia STR license requires two pre-license inspections before issuance. These are not optional.
Property Standards Inspection
A City Property Standards Officer conducts a physical inspection of the property. They check exterior maintenance, structural safety, cleanliness, waste management, and compliance with the property standards bylaw. Issues identified must be corrected before the license is issued.
Fire Prevention Inspection
A Fire Prevention Officer from Orillia Fire and Emergency Services inspects for:
- Working smoke alarms on every level and outside every sleeping area
- Carbon monoxide detectors near sleeping areas in homes with fuel-burning appliances
- Fire extinguishers (typically one per floor minimum)
- Proper egress from every bedroom
- Clear exit signage and emergency information
- No blocked fire exits or safety hazards
Plan for both inspections to take several weeks to schedule. Budget 6 to 8 weeks of lead time from application to license issuance during peak seasons.
Municipal Accommodation Tax
Orillia charges a 4% Municipal Accommodation Tax on all short-term rental revenue. The tax is collected from the guest and remitted by the operator to the City of Orillia. Revenue from the MAT is shared between the City and Orillia and Lake Country Tourism to fund tourism marketing and development.
What MAT Applies To
- Nightly rental fees
- Cleaning fees
- Pet fees
- Any mandatory guest fees
What MAT Does Not Apply To
- Airbnb or platform service fees
- Optional add-ons like early check-in
- Damage deposits (refundable)
Remittance
A Municipal Accommodation Tax Compliance Report is required at license renewal each year. Quarterly remittance is standard for most operators. Airbnb and VRBO can be configured to collect MAT automatically and send it to operators, but ultimate responsibility for remittance falls on the license holder.
Federal HST (13%) applies on top of MAT if annual STR revenue exceeds $30,000. See our guide to MAT tax in Ontario for full details on how the tax works across municipalities.
Enforcement and Fines
Orillia takes STR enforcement seriously. The City employs a dedicated full-time enforcement officer and uses Granicus-style compliance monitoring software to track every listing on Airbnb, VRBO, Booking.com, and other platforms.
Demerit Point System
Chapter 730 uses a demerit point system to track violations. Common violations and their point values include:
- Operating without a license: high demerit count
- Noise violations: moderate demerits
- Parking violations: moderate demerits
- Occupancy overages: moderate demerits
- Failure to respond to complaints: high demerits
- Providing false information on application: license revocation
Accumulating enough demerit points can trigger license suspension or full revocation. A suspended or revoked license does not automatically free up a spot for a new applicant, but the operator who held it loses access.
Fines and Charges
- $200 discretionary inspection charge when bylaw officers investigate a complaint
- Provincial Offences Act fines up to $100,000 for serious violations
- License suspension or revocation for repeat offenders
- Cost recovery for enforcement actions (legal fees, investigation costs)
Quiet Hours
Orillia enforces strict quiet hours from 10 p.m. to 7 a.m. A single serious noise complaint is typically enough to trigger a bylaw visit. Repeat noise violations at the same property can lead to license revocation.
How to Apply for an Orillia STR License
The application process is straightforward but time-consuming. Here is the step-by-step approach.
- Confirm license availability. Call Orillia Licensing Services before you start. Ask how many of the 150 licenses are currently issued. If the cap is near full, you may want to act immediately or consider a different market.
- Verify your property is eligible. Check zoning (residential zones generally permit STRs). If you own a condo, read your declaration and bylaws. Many condos prohibit STRs even when the city allows them.
- Get STR-specific insurance. Contact your broker for a policy that explicitly covers short-term rental use with at least $2,000,000 in liability coverage. Standard homeowner policies rarely cover STR guests.
- Prepare required documents. Proof of ownership, Certificate of Insurance, site plan, floor plan, Code of Conduct for guests, HST number if applicable, WETT or septic certificates if applicable.
- Submit application and pay the fee. Apply through the City of Orillia licensing portal. Pay the 2026 fee based on bedroom count ($680 for 1BR, $1,360 for 2BR, $2,040 for 3BR+).
- Schedule inspections. Book both the Property Standards inspection and the Fire Prevention inspection. Expect 2 to 4 weeks of lead time. Address any issues identified before re-inspection.
- Receive your license. Once inspections pass, your license is issued. Display the license number on every platform listing (Airbnb, VRBO, Booking.com).
- Set up MAT collection. Configure Airbnb and VRBO to collect the 4% Municipal Accommodation Tax at booking. Set up a remittance schedule with the City.
- Launch your listing. You can now legally operate. If you need a starting point, you can sign up for Airbnb through our referral link and get a free consultation on optimizing your listing.
Orillia vs Neighboring Cities
Here is how Orillia compares to other nearby markets for STR regulation:
Orillia sits between unregulated Simcoe markets (Barrie, Bradford, Innisfil) and strictly regulated cottage markets (Muskoka Lakes, Huntsville). The license cap is the main downside. The lack of a principal residence rule is the main upside for investors.
Best Orillia Areas for Airbnb
Not every Orillia area is equal for short-term rentals. Proximity to the waterfront, downtown, and major attractions drives performance.
Downtown Orillia (Mississaga Street)
Downtown Orillia along Mississaga Street and Front Street offers walkability to restaurants, cafes, the Orillia Opera House, and Couchiching Beach Park. Guests visiting for festivals, concerts, or Casino Rama prefer this central location. 1-bedroom and 2-bedroom listings here command premium rates during summer and event weekends.
Lake Couchiching Waterfront
Properties along Lake Couchiching hit peak rates during summer. Waterfront access, docks, and views are major differentiators. Summer nightly rates can exceed $400 to $600 for well-furnished properties. Winter demand from ice anglers and snowmobilers keeps lakefront listings booked year-round, though at lower rates.
Lake Simcoe Shoreline
The Orillia side of Lake Simcoe offers larger cottages and homes with dock access. These work well for family reunions, corporate retreats, and extended summer stays. 3-bedroom and 4-bedroom properties here often generate $6,000 to $9,000 in peak summer months.
Casino Rama Area
Casino Rama Resort is just northeast of Orillia on Rama First Nation land. Properties within a 10 to 15 minute drive serve casino visitors, concert attendees, and event travelers. Steady weekend demand throughout the year. Note that Casino Rama itself is outside Orillia's jurisdiction, but Orillia properties benefit from its traffic.
Near the Trent-Severn Waterway
Properties along or near the Trent-Severn Waterway attract boaters, anglers, and cruisers during summer. Access to the waterway is a real value proposition for this niche. Mid-term rentals for seasonal boat owners or vacationers are underrated here.
Income Potential
Orillia's tourism economy is stronger than most investors realize. Year-round attractions, strong summer demand, and winter activity keep properties booked across seasons.
Demand Drivers
- Lake Couchiching and Lake Simcoe: Summer boating, swimming, water sports
- Casino Rama Resort: Year-round gaming, concerts, entertainment
- Orillia Opera House: Theatre, concerts, and live performances
- Stephen Leacock Museum: Literary tourism and school groups
- Mariposa Folk Festival: Major multi-day summer festival
- Ice fishing and snowmobiling: Winter tourism on the lakes
- Trent-Severn Waterway: Boating and cruising traffic
- Cottage country gateway: Travelers heading to Muskoka and points north
Realistic Monthly Revenue Estimates
These ranges reflect similar Simcoe County and cottage country markets. Actual performance depends on furnishing quality, photography, pricing strategy, and guest experience. Professional management typically increases revenue 30 to 100 percent compared to owner self-management.
Factoring in the License Cost
The $680 to $2,040 annual license fee is real but manageable. On a property generating $35,000 per year, the $2,040 max fee is about 5.8% of gross revenue. Add 4% MAT and you are at roughly 10% of revenue going to municipal costs. Still leaves strong margins compared to Toronto (8.5% MAT alone) or Oshawa (5% MAT plus licensing).
Act on the Cap
The 150-license cap is a hard limit. Unlike cities still debating regulation, Orillia has already decided how many operators it will allow. If you want to operate in Orillia, apply now. Waiting for a "better time" is the fastest way to get shut out of the market entirely.
Ready to Launch Your Orillia Airbnb?
Orillia is a regulated but investor-friendly market. No principal residence rule, no night cap, and strong year-round tourism demand. The 150-license cap and $680+ annual fee are real friction, but the economics work if you secure a license and operate professionally.
New to Airbnb? You can sign up for Airbnb through our referral link and get a free consultation with our team to help you optimize your listing from day one. Or if you want to skip the licensing and operations headache entirely, check out our full-service Airbnb management, our 18% management fee beats most competitors charging 20 to 25 percent.
This article contains a referral link. We may earn a small commission at no cost to you.
Frequently Asked Questions
Do I need a license to Airbnb in Orillia?
Yes. Orillia requires an annual short-term rental license under Chapter 730 of the Municipal Code. The 2026 fee is $680 per bedroom, capped at $2,040 per property. A pre-license inspection by a Property Standards Officer and a Fire Prevention Officer is required. The license must be renewed every year with a Municipal Accommodation Tax Compliance Report submitted at renewal.
Can I Airbnb an investment property in Orillia?
Yes. Orillia is one of the few regulated Ontario cities that does not require principal residence. Investment properties, secondary homes, and cottages can all be licensed. This is a major advantage compared to Toronto, Mississauga, Vaughan, Oakville, and Burlington, which all restrict STRs to where the owner actually lives.
What is the STR license cap in Orillia?
Orillia has a hard cap of 150 short-term rental licenses city-wide. Once those 150 are issued, new applicants join a waitlist. This cap is the single most important factor for anyone considering Orillia. Applying now while licenses are still available is critical because the cap is not tied to existing operator counts, it is a fixed maximum.
How much does the Orillia STR license cost in 2026?
The 2026 fee is $680 per bedroom, capped at $2,040 per property. A 1-bedroom listing costs $680 per year. A 2-bedroom costs $1,360. A 3-bedroom or larger costs the max $2,040. This is a significant change from 2024 and 2025, when every property paid a flat $2,040 regardless of size. Council approved the per-bedroom structure after operators called the flat fee 'atrocious.'
Does Orillia have a Municipal Accommodation Tax?
Yes. Orillia charges a 4% MAT on all short-term rental revenue. The tax is remitted directly to the City and shared with Orillia and Lake Country Tourism to support local tourism marketing. HST at 13% applies federally on top if your annual STR revenue exceeds $30,000.
What is the STR night limit in Orillia?
There is no annual night limit. Licensed Orillia operators can host guests 365 days a year. This is a meaningful advantage over Toronto (180 nights), Burlington (183), Milton (180), and Oshawa (180). As long as you hold a valid license and comply with other rules, there is no cap on rental nights.
What inspections does Orillia require for STRs?
Every licensed property requires pre-license inspections by both a Property Standards Officer (building exterior, structural safety, cleanliness) and a Fire Prevention Officer (smoke alarms, CO detectors, fire extinguishers, egress). A WETT (Wood Energy Technology Transfer) report is required if there is any wood-burning appliance. Septic pump-out proof within the last 5 years is required for properties on septic systems.
What insurance does Orillia require for Airbnbs?
A Certificate of Insurance must be submitted with the license application. The city does not publish a specific minimum, but $2,000,000 in liability coverage with an STR-specific rider is standard and recommended. Standard homeowner's insurance rarely covers short-term rental guests, so confirm with your broker that the policy explicitly includes STR use.
What are the fines for STR violations in Orillia?
Orillia uses a demerit point system under Chapter 730. Enough demerit points can lead to license suspension or revocation. A $200 discretionary inspection charge applies to complaint-driven bylaw visits. Provincial Offences Act fines can reach up to $100,000 for serious violations. Orillia has a dedicated full-time enforcement officer and uses Granicus-style compliance software to monitor Airbnb, VRBO, and Booking.com listings.
How much can I earn on Airbnb in Orillia?
Earnings depend on property size, waterfront access, and seasonality. A 2-bedroom listing near downtown or the waterfront typically generates $2,500 to $5,500 per month. Lakefront cottages on Lake Couchiching or Lake Simcoe can earn $5,000 to $9,000 per month during peak summer. Winter demand from snowmobilers, ice anglers, and Casino Rama visitors keeps lakefront and downtown listings active year-round. Mid-term rentals for professionals working in the region are a strong niche.
Sources
- City of Orillia: Short Term Rental Accommodations
- Orillia Council: STR Licensing Regulations Approved
- Barrie 360: Orillia STRA Fee Structure Change (2026)
- Muskoka 411: Orillia Council Approves Updated Fee Structure
- Global News: Orillia Cracks Down on STRs
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change frequently. Always verify current rules directly with the City of Orillia before making hosting decisions.
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