Port Colborne went from unregulated to fully licensed in late 2025. By-law 7388/79/25, passed September 23, 2025 and effective November 1, 2025, requires every short-term rental operator in the city to hold a license. But unlike Toronto, Mississauga, or Vaughan, Port Colborne has NO principal residence rule. Investment properties, second homes, and corporately-owned properties are all legally eligible. Combined with the Lake Erie tourism economy and proximity to Niagara Falls, this makes Port Colborne one of the more investor-friendly STR markets in Ontario.
Here is the complete breakdown of Port Colborne's STR framework, verified directly from the bylaw text: tiered license fees, the new 4% Municipal Accommodation Tax (with an important warning about platform collection), guest limits, and the Vacation Residential zone nuances that matter for Sherkston Shores and cottage owners.
Quick Summary: Port Colborne STR Rules
Here is what a property owner needs to know at a glance:
Bylaw 7388/79/25 Effective Date
Port Colborne City Council approved the Short-Term Rental Accommodation Licensing By-law on September 23, 2025. The bylaw came into force on November 1, 2025 (council approval date and effective date sourced from the City of Port Colborne Short-Term Rental Accommodations page).
Per the City of Port Colborne, existing operators have until March 1, 2026 to apply for a license. The City's page states: "Late applications are subject to a 25% late fee, which will allow the applicant to receive a Conditional Licence, and the application will be put into the queue for a comprehensive review." New applications for any property after November 1, 2025 require licensing before advertising or operating (Section 4.1).
"No Person shall rent or operate a Short-Term Rental Accommodation unless the Person holds a current Licence issued pursuant to this By-law." Port Colborne By-law 7388/79/25, Section 4.1
No Principal Residence Rule
This is the most important distinction between Port Colborne and cities like Toronto, Vaughan, or Ottawa. Port Colborne's STR bylaw does NOT require the operator to live at the property. Investment properties, second homes, cottages, and corporately-owned properties are all eligible for STR licensing.
The bylaw's definition of STR makes this explicit:
"Short-Term Rental Accommodation means all or part of a Dwelling Unit that provides sleeping accommodation to someone other than the Owner for any period of twenty-eight (28) calendar days at a time or less, in exchange for payment." Port Colborne By-law 7388/79/25, Section 2.34
The phrase "to someone other than the Owner" confirms the bylaw anticipates arrangements where the owner is not present during the rental. Section 6.5 further provides for corporate applicants with specific documentation requirements.
License Fees (Tiered by Zone)
Port Colborne uses an unusual fee structure that differentiates between Vacation Residential (VR) zones and standard residential zones. This recognizes that VR-zoned properties (like Sherkston Shores) already operate in a resort context with different infrastructure.
Licences expire on December 31 of the year issued, on sale or transfer of the Premises, or on suspension/revocation (Section 11.1). Per the City of Port Colborne Short-Term Rental Accommodations page: "if you have multiple units, a separate license application is required for each unit."
Guest & Renter Limits
The bylaw distinguishes between "Renters" (paying guests staying overnight) and "Guests" (visitors to the property). Both have separate limits.
Bedroom Maximum
Maximum 5 bedrooms can be licensed per property (Section 8.1-8.2). The number is also limited by available parking spaces on the premises. The Licensing Officer has discretion to adjust bedroom count based on property-specific circumstances.
Renter Limits (Overnight Occupants)
- Maximum 2 renters per bedroom
- Maximum 10 total renters
- Additional 2 renters under age 16 permitted
- Infants under 2 do not count
Guest Limits (Visitors)
- Maximum 1 guest per bedroom
- Maximum 5 guests total
- Guests must leave between 11:00 PM and 8:00 AM (Section 4.6)
Special Events Restricted
Section 4.16 prohibits licensees from permitting special events (weddings, receptions, retirement parties, musical events) that exceed the licensed renter/guest limits. A property licensed for 10 renters cannot host a 50-person wedding reception. Plan accordingly or risk license revocation.
The 4% Municipal Accommodation Tax
Port Colborne's Municipal Accommodation Tax is governed by By-law 7283/105/24, effective February 1, 2025 at a rate of 4% on stays of 30 days or less (City of Port Colborne Municipal Accommodation Tax page).
Critical: Platforms Do NOT Auto-Collect Port Colborne MAT
Per the City of Port Colborne: "Popular accommodation booking platforms will not automatically collect the MAT on behalf of the City of Port Colborne."
This is a CRITICAL difference from Toronto and Ottawa. In those cities, Airbnb and VRBO collect MAT automatically. In Port Colborne, operators must manually configure their Airbnb, VRBO, and Booking.com listings to charge the 4% MAT themselves and remit it directly to the City. Failure to collect and remit may be treated as a compliance violation.
MAT revenue is split: at least 50% goes to Niagara's South Coast Tourism Association (the local destination marketing organization) and the rest to the City for tourism infrastructure and events.
Exemptions noted on the City of Port Colborne Municipal Accommodation Tax page:
- Port Colborne residents (unless staying overnight at accommodations within the city)
- Stays exceeding 30 consecutive days
- Bookings made prior to February 1, 2025
- Service fees (parking, food and beverage, internet, etc.)
See By-law 7283/105/24 for the full exemption list and definitions.
Application Requirements
Section 6.1 of the bylaw lists mandatory application documents. Start gathering these early because some require external inspections:
- Completed application form
- Proof of ownership (title documents)
- Statutory declaration
- Site diagram showing parking locations and spaces
- Floor plans showing rooms and fire exits
- $2,000,000 liability insurance certificate with STR endorsement
- Electrical general inspection by licensed electrical contractor (within 5 years)
- WETT report if wood-burning appliances on premises (within 5 years)
- Annual chimney sweep report if applicable
- HVAC inspection report (annual, by HVAC technician)
- Septic system report if applicable (annual, from licensed septic company)
- Well water test results if applicable, submitted to Niagara Region Public Health a minimum of three times per year (Section 6.1(k))
- Local Contact Person info (must respond within 30 min, attend within 60 min, 24/7)
- List of platforms where the STR will be advertised (Airbnb, VRBO, etc.)
Corporate Applicants
Section 6.5 allows corporations to apply with additional documentation:
- Incorporating documents
- Most recent corporate filing listing directors and officers
- Letter indicating board resolution authorizing the license application
- Contact info for every person responsible for STR operation
- Annual return under the Corporations Information Act
Vacation Residential Zones (Sherkston Shores, etc.)
Port Colborne treats Vacation Residential (VR) zones differently throughout the bylaw. Properties in VR zones include Sun Retreats Sherkston Shores, Cedar Bay, and similar resort communities along Lake Erie.
VR-Specific Rules
- Lower license fees ($800 initial / $480 renewal vs $1,000 / $600 outside VR)
- "Owner" includes site occupants (Section 2.25), not just title holders
- VR zone owner can set custom occupancy limits subject to Licensing Officer approval (Section 8.6)
- VR zone owner controls parking rules for individual sites (Section 7.1(d))
- Tents, Park Model Trailers, and Mobile Homes allowed as sleeping accommodations in VR zones only (Section 4.15)
Note: the 11 p.m. to 8 a.m. guest hours in Section 4.6 apply to all licensed STRs without a VR carve-out. Section 8.6 only exempts VR zones from the renter and guest count limits in Sections 8.3 to 8.5, not from the guest hours rule.
If you operate or are considering an STR at Sherkston Shores or similar VR-zoned properties, review Section 8.6 carefully. The zone owner typically provides a standard operating framework, but you still need your own license.
Enforcement & Appeals
Enforcement is handled by municipal law enforcement officers, building inspectors, and police with authority to enter properties and inspect premises (Section 3.2).
Grounds for License Refusal or Revocation (Section 10.2)
- Operation would be adverse to public interest
- Previous license revoked, suspended, or conditioned
- Applicant has history of bylaw contravention
- Proposed use is not permitted by Zoning By-law
- Failed pre-license inspection items not corrected
- Owner is indebted to City for property taxes, MAT, or fines (Section 10.2(f))
- Premises don't conform with applicable laws (Building Code, Fire Code, Noise By-law, etc.)
Administrative Monetary Penalties and Court Fines
Per Section 17.1, the bylaw is designated under the Administrative (Non-Parking) Penalty By-law 6902/50/21. Officers may issue an AMP immediately upon evidence of a violation (Section 17.2), with amounts set out in Schedule "B" of 6902/50/21 (Section 17.3).
Separate from AMPs, Section 16.2 of 7388/79/25 sets court-ordered fines on a first conviction at not less than $500 and not exceeding $100,000. Continuing offences are subject to a further penalty not exceeding $10,000 per day under Section 16.4, and total daily fines are not capped at $100,000 (Section 16.5).
Appeals
License denials, suspensions, and revocations can be appealed to the Appeals Committee under By-law 7186/09/2024. Appeals must be filed within 14 business days with payment of the Appeal Fee. The Committee's decision is final and binding (Section 12.7).
Staying Compliant in Port Colborne
- Apply before March 1, 2026 if you're an existing operator. The 25% late fee is avoidable.
- Display your license number on every listing. Section 4.3 requires it on advertisements. City inspectors check compliance by searching Airbnb and VRBO for unlisted properties.
- Manually configure 4% MAT on every platform. Airbnb will not do this automatically. Go into your listing settings and add a city-specific tax collection rule.
- Designate a Local Contact Person who can respond within 30 minutes and attend within 60 minutes, 24/7. This is especially important for non-resident owners.
- Maintain the Renter Register weekly per Section 5.3. Include smoke/CO alarm checks, renter names, check-in/out dates, and vehicle plate numbers.
- Schedule inspections annually. HVAC and septic (if applicable) need yearly updates. Electrical is every 5 years. Put these on a calendar.
- Post required documents on-site: license, floor plans, Noise By-law, Open Air Burning By-law, fire safety plan with exit routes, occupant load, 911 instructions, Local Contact info. Section 7.3 lists them all.
- Install and maintain fire extinguishers on every level (ABC rated, minimum 2A 10BC 5 lb), inspected monthly.
- Pay property taxes and MAT on time. Section 10.2(f) allows license refusal for unpaid City debts. Falling behind on MAT payments can cost you the license.
- No special events exceeding licensed limits. A property licensed for 10 renters cannot legally host a larger wedding or event.
Official City of Port Colborne Resources
Always verify current rules with official sources before making hosting decisions:
Official Links
- City of Port Colborne - Short-Term Rental Accommodations
- By-law 7388/79/25 Full Text (PDF)
- Short-Term Rental Registration Form
- City of Port Colborne - Municipal Accommodation Tax
- Let's Connect Port Colborne - STR Engagement
- By-law Services: Fire Hall, 3 Killaly Street West, 905-228-8080
Common Questions From Port Colborne Hosts
Can I Airbnb an investment property in Port Colborne?
Yes. Port Colborne's STR bylaw (7388/79/25) has NO principal residence requirement. Section 2.34 defines a short-term rental as 'sleeping accommodation to someone other than the Owner,' and Section 6.5 explicitly allows corporations to hold STR licenses with required corporate documentation. Investment properties, second homes, and corporately-owned properties can all be legally operated as STRs with the proper license. This makes Port Colborne one of Niagara Region's most investor-friendly markets.
How much does a Port Colborne STR license cost?
License fees are tiered by zone. In Vacation Residential (VR) zones: $800 + HST initial and $480 + HST annual renewal. Outside VR zones (standard residential): $1,000 + HST initial and $600 + HST annual renewal. Per Section 6.2 of the bylaw, fees are set in the City's Fees and Charges By-law (7297/119/24); the dollar amounts above are published on the City of Port Colborne Short-Term Rental Accommodations page. Licences expire December 31 of the year issued (Section 11.1(a)).
Does Port Colborne have a Municipal Accommodation Tax?
Yes. Port Colborne's 4% MAT took effect February 1, 2025 and applies to all short-term accommodations for stays of 30 days or less. Critical: unlike Toronto and Ottawa where Airbnb auto-collects MAT, the City of Port Colborne explicitly states 'popular accommodation booking platforms will not automatically collect the MAT on behalf of the City of Port Colborne.' Operators MUST manually configure their Airbnb, VRBO, and Booking.com listings to collect the 4% and remit it themselves.
Is there a night limit for Airbnb in Port Colborne?
No annual night limit. The bylaw does not cap the total number of nights per year you can rent. However, individual stays must be 28 days or less to qualify as an STR (longer stays become regular tenancies under the Residential Tenancies Act).
What are the guest and renter limits in Port Colborne?
Per Part 8 of the bylaw: maximum 5 bedrooms can be licensed. Maximum 2 renters per bedroom up to 10 total renters, plus 2 additional renters under 16 (infants under 2 don't count). Maximum 1 guest (visitor) per bedroom up to 5 guests total. Guests must leave between 11 PM and 8 AM. Vacation Residential zones like Sherkston Shores have slightly different rules where the zone owner can set custom limits.
What insurance do I need for a Port Colborne Airbnb?
$2,000,000 liability insurance minimum, with the policy explicitly indicating the property operates as a short-term rental. The City must be given at least 10 days' written notice of any cancellation or material variation in the policy. Standard homeowner insurance typically does not cover STR use, so contact your insurer about specialized STR coverage or a rider.
What documents do I need to apply for a Port Colborne STR license?
Per Section 6.1: completed application, proof of ownership, statutory declaration, site diagram showing parking, floor plans showing rooms and fire exits, $2M insurance certificate, electrical general inspection (within 5 years), WETT report if wood-burning appliances present, HVAC inspection report (annual), septic inspection (annual, if applicable), private well test results (from Niagara Region Public Health, if applicable), Local Contact Person contact info (must respond within 30 min, attend within 60 min), and list of platforms used. Corporations need additional corporate filings.
What happens if I operate without a license in Port Colborne?
Section 4.1 prohibits operating an STR without a valid license. Section 4.3 requires the license number on all advertisements. Violations trigger Administrative Monetary Penalties under By-law 6902/50/21. The City can also refuse to issue or renew licenses based on previous violations (Section 10.2). Licensees can appeal decisions to the Appeals Committee under By-law 7186/09/2024.
Are Sherkston Shores and other Vacation Residential properties regulated the same way?
Mostly yes, but with some VR-specific accommodations. The bylaw treats VR zones differently on: parking (VR owner sets parking limits), site occupancy (VR owner can set custom renter/guest limits subject to Licensing Officer approval), and tents/trailers/mobile homes (permitted on VR zones only). The 'Owner' in VR zones can be the site occupant rather than the title holder. Sun Retreats Sherkston Shores, Cedar Bay, and similar VR-zoned properties should review Section 2.25 and Part 8 carefully.
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change. Always verify current rules directly with the City of Port Colborne before making hosting decisions.
Sources used in this article (all retrieved April 2026):
- Port Colborne Short-Term Rental Accommodation Licensing By-law 7388/79/25 (full PDF on the City of Port Colborne website). Used for: STR definition (ยง2.34), Owner definition (ยง2.25), prohibitions (ยง4.1, ยง4.3, ยง4.6, ยง4.15, ยง4.16), licensee obligations (ยง5.3), application requirements (ยง6.1), corporate applicants (ยง6.5), site requirements (ยง7.1, ยง7.3, ยง7.4, ยง7.5), bedroom and occupancy restrictions (ยง8.1 to ยง8.6), grounds for refusal and revocation (ยง10.2), term of licence (ยง11.1), appeal process (ยง12.4 and ยง12.7), AMP designation (ยง17), and offence fines (ยง16).
- City of Port Colborne Short-Term Rental Accommodations webpage. Used for: council approval date (September 23, 2025), effective date (November 1, 2025), licence fee amounts ($800 / $480 / $1,000 / $600 +HST), application deadline (March 1, 2026), 25% late fee Conditional Licence wording, and multi-unit application rule.
- City of Port Colborne Municipal Accommodation Tax webpage and By-law 7283/105/24. Used for: 4% MAT rate, February 1, 2025 effective date, 30-day stay threshold, platform non-collection statement, 50% revenue share to Niagara's South Coast Tourism Association, and exemptions list.
- City Fees and Charges By-law 7297/119/24, referenced in ยง6.2 of 7388/79/25 as the source of fee amounts.
- Administrative (Non-Parking) Penalty By-law 6902/50/21 and Appeal By-law 7186/09/2024, referenced throughout 7388/79/25.
Need Help With Port Colborne STR Compliance?
Nurture manages Airbnb properties across Ontario and has deep familiarity with Niagara Region STR frameworks. Whether you own an investment property in Port Colborne's core, a Lake Erie cottage at Sherkston Shores, or are evaluating a new purchase, we handle licensing, MAT collection, guest communication, dynamic pricing, and ongoing compliance.
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