Port Perry is the main settlement within the Township of Scugog, located on the northern shore of Lake Scugog in Durham Region. Its Queen Street historic district and lakeside charm make it a popular leisure destination. Unfortunately for would-be Airbnb hosts, Scugog's zoning framework does not permit short-term rentals in residential zones.
Scugog Zoning By-law 14-14 (2025 consolidation) does not list short-term rental as a permitted use in residential zones. A 2014 Ontario Municipal Board decision upheld this interpretation, and Council has consistently declined to adopt a licensing framework that would authorize residential STR use. For Port Perry investors and property owners, mid-term rentals of 28+ consecutive days are the only compliant rental path.
Port Perry Is Part of Scugog
Port Perry is not a separate municipality. It is the main settlement area within the Township of Scugog, which also includes Greenbank, Seagrave, Scugog Island, Blackstock, and several rural communities. Every Scugog zoning and STR policy applies to Port Perry.
Implications:
- Scugog's STR prohibition applies across Port Perry including the Queen Street area, the lakeside cottage roads, the historic district, and newer subdivisions
- Enforcement is handled by Scugog Bylaw Enforcement
- Any future change to Scugog's approach automatically applies to Port Perry
The Zoning Prohibition
Scugog's approach to STRs is zoning-based. Zoning By-law 14-14 does not list short-term rental as a permitted use in residential zones. Without listed permission, the use is prohibited.
STRs Are Not Permitted in Port Perry Residential Zones
Under Scugog Zoning By-law 14-14 (2025 consolidation), you cannot legally operate an Airbnb, VRBO, or Booking.com listing for stays under 28 days at a Port Perry residential property unless you obtain a site-specific zoning amendment. The prohibition covers the full residential zone categories including R1, R2, R3, and related subdivision zoning.
The 2014 OMB Decision
The most important legal anchor for Scugog's STR position is a 2014 Ontario Municipal Board decision that affirmed the Township's interpretation of its zoning bylaw. The OMB ruled that short-term rental is a commercial use inconsistent with the residential purpose of Scugog's residential zones. That decision remains binding and is reaffirmed by the 2025 zoning consolidation.
Practical impact:
- Challenges to Scugog's STR prohibition face a strong precedent
- Site-specific zoning amendments for STR use are uphill battles
- Council has not moved toward a licensing framework that would override the zoning position
Enforcement
Scugog Bylaw Enforcement monitors platform listings and responds to neighbour complaints. Typical enforcement progression:
- Warning letter to property owner via registered mail
- Cease-and-desist order
- Administrative penalties per Scugog's penalty schedule
- Coordination with Airbnb, VRBO, and Booking.com to remove listings
- Court injunctions for persistent violators
Scugog's approach is complaint-driven but also includes proactive platform scanning. Lakeside cottage areas have historically been a focus because neighbour complaints about noise, parking, and traffic concentrate around waterfront recreation zones.
Mid-Term Rental Strategy (30+ Days)
Mid-term rentals of 28+ consecutive nights are residential tenancies subject to the Residential Tenancies Act, not short-term commercial accommodation. They fall outside Scugog's STR zoning prohibition and are fully compliant.
Port Perry Mid-Term Demand Sources
- Lakeridge Health Port Perry: travel nurses, locum physicians, and healthcare workers on 13-week to 6-month contracts
- Durham College and Ontario Tech (Oshawa): visiting faculty and graduate students looking for quieter housing outside Oshawa
- Seasonal cottage owners: residents of other provinces wanting a longer Port Perry base for summer use
- Corporate relocations to Durham: General Motors, Ontario Power Generation, and energy-sector project teams
- Remote workers: Toronto professionals seeking a 3-6 month waterside work arrangement
- Retirement staging: couples planning a move to Port Perry often do a 3-12 month trial rental before buying
Typical Port Perry mid-term rates: 3-bedroom detached near the lake $3,800-$5,200/month furnished. 2-bedroom townhome or condo $2,800-$3,600/month. Single turnover per month versus 10-15 STR turnovers significantly reduces operational overhead.
Commercial Zone Exceptions
A narrow set of properties may permit short-term accommodation use through commercial zoning. These are not standard residential STRs:
- Existing hotels, motels, inns in commercial zones on Queen Street or Highway 7A corridor
- Historic bed-and-breakfast operations that pre-date zoning restrictions and have legal non-conforming status
- Tourist accommodation zones that specifically permit short-term commercial accommodation use
These are rare, expensive, and typically not the type of property residential investors are looking at. If you are evaluating a commercial-zoned property on Queen Street or considering acquiring an existing B&B, consult Scugog Planning Services before closing.
Compliance Checklist
- Do not list your Port Perry residential property for rentals under 28 days
- If currently operating an STR, pause and transition to mid-term
- For mid-term rentals, use a written 30+ day lease with furnished-rental terms
- Collect first and last month rent and required deposits per Residential Tenancies Act
- Maintain smoke and CO detectors per Ontario Fire Code
- Cottage associations and waterfront property covenants often add restrictions beyond Township zoning, review those separately
- If exploring commercial zoning options, contact Scugog Planning Services before investing
Official Resources
Official Links
Frequently Asked Questions
Does Port Perry allow Airbnb?
Not in residential zones. Port Perry is the main settlement within the Township of Scugog, and Scugog's Zoning By-law 14-14 (2025 consolidation) does not permit short-term rentals in residential zones. The 2014 Ontario Municipal Board decision upholding Scugog's STR prohibition remains binding. STR operation on a Port Perry residential property is not legally permitted without a site-specific zoning amendment.
Why are Port Perry Airbnbs prohibited?
Scugog's zoning framework has explicitly not included short-term rental as a permitted use in residential zones. The Township argued that STRs are a commercial use incompatible with residential character. An OMB ruling in 2014 affirmed this interpretation, and the 2025 zoning consolidation maintains the prohibition. Council has resisted adopting an STR licensing framework that would authorize residential STR use.
What happens if I Airbnb in Port Perry anyway?
You are operating a commercial use in a residential zone, which is a zoning violation. Scugog's Bylaw Enforcement team can issue warnings, cease-and-desist orders, and administrative penalties. Continued operation can lead to court injunctions and significant fines. The Township also coordinates with Airbnb, VRBO, and Booking.com to remove non-compliant listings.
Can I Airbnb a commercial-zoned property in Port Perry?
Possibly. Commercial-zoned properties on Queen Street or in designated commercial areas may permit short-term accommodation as an existing hotel, inn, motel, or bed-and-breakfast use depending on the specific zone. These properties are rare and not typical residential STR investments. Consult Scugog Planning Services before assuming a commercial zoning allows Airbnb-style use.
What is the legal alternative for Port Perry investors?
Mid-term rentals of 28+ consecutive days are residential tenancies under the Residential Tenancies Act and are not subject to Scugog's STR zoning prohibition. Port Perry has moderate mid-term demand driven by seasonal cottage traffic, visiting family, Lakeridge Health Port Perry healthcare workers, and Durham Region tourism. Typical mid-term rates for a 3-bedroom home near the lake: $3,800-$5,200/month furnished.
Are there any exceptions for lakeside cottages in Port Perry?
Seasonal-use cottages in specifically zoned cottage areas around Lake Scugog have their own zoning classifications. The critical question is whether the cottage zoning permits short-term commercial accommodation. Most seasonal cottage zones in Scugog also do not permit STR use. A site-specific zoning analysis is required for any cottage considering short-term rental.
How does Scugog compare to other Durham Region municipalities?
Very different. Oshawa has a fully developed STR licensing framework (principal residence, 180-night cap, 5% MAT, $150 license, $2M insurance). Whitby is developing a framework. Ajax, Pickering, Clarington, Uxbridge, and Brock are unregulated. Scugog is the only Durham municipality that actively prohibits STR in residential zones. This makes Port Perry the most restrictive Durham market for short-term hosting.
Can I Airbnb my Port Perry property while I live there?
Technically, the zoning prohibition applies to the commercial use regardless of whether you occupy the property. Unlike Vaughan or Toronto, Scugog does not have an owner-occupied carve-out for principal-residence STRs. Renting a room while you live there still constitutes a short-term commercial accommodation use under the current framework.
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 Township of Scugog before making hosting decisions.
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