Sault Ste. Marie sits at the heart of the Algoma region, attracting visitors for outdoor recreation, the Agawa Canyon tour, and cross-border travel. As Northern Ontario's third-largest city, it has a growing STR market.
What makes the Sault unique? It's one of the few Ontario cities that does NOT require STRs to be in your principal residence. This makes it significantly more investor-friendly than most of the province. Here's the complete guide to operating an STR in the Sault.
What Counts as a Short-Term Rental?
Sault Ste. Marie uses a standard 28-day definition:
"Short-term rental accommodations means accommodations provided for a period of up to twenty-eight (28) consecutive days." Sault Ste. Marie STR Licensing Guidelines
Key elements:
- Up to 28 days - standard Ontario threshold
- Accommodations - residential properties for guest stays
- Consecutive days - per booking/stay
- Commercial hospitality excluded - hotels, motels have separate rules
No Principal Residence Requirement
This is what makes Sault Ste. Marie stand out:
"There is no primary residence restriction for short-term rental operators in Sault Ste. Marie." Sault Ste. Marie STR Licensing Guidelines
What this means for investors:
- Investment properties qualify - unlike Toronto, Ottawa, London, etc.
- Multiple STRs allowed - can operate more than one property
- Out-of-town ownership OK - don't need to live in the Sault
- Corporate ownership possible - check specific requirements
License Requirements
Even without the principal residence rule, licensing is required:
License Terms
Application Requirements
- Building Division approval
- Fire Services approval
- Finance Division approval
- Police background check
- $2,000,000 liability insurance (City as additional insured)
- House rules for guests
- Neighbor contact information
- Condo approval (if applicable)
Required Departmental Approvals
Sault Ste. Marie requires sign-off from three city departments:
Building Division
Verifies:
- Building code compliance
- Proper occupancy classification
- Structural safety
Fire Services
Verifies:
- Smoke and CO detectors
- Fire extinguishers
- Emergency exit routes
- Fire safety plan
Finance Division
Verifies:
- Property taxes current
- MAT registration
- No outstanding fees
Police Background Check
Sault Ste. Marie requires a police background check:
"A police background check is required as part of the short-term rental license application." Sault Ste. Marie STR Licensing Guidelines
This requirement:
- Must be obtained locally - from Sault Ste. Marie Police Service
- Verifies suitability - ensures no relevant criminal history
- Required for all applicants - owner/operator must submit
- Processing time varies - apply early
Insurance Requirements
Sault Ste. Marie has strict insurance requirements:
"Operators must maintain liability insurance of at least $2,000,000 and must name the City as an additional insured on the policy." Sault Ste. Marie STR Licensing Guidelines
Key requirements:
- $2,000,000 minimum liability coverage
- City as additional insured - requires specific policy endorsement
- Certificate required with application
- Maintain continuously throughout license term
Additional Insured Requirement
The requirement to name the City as an "additional insured" is stricter than basic insurance. Not all policies support this endorsement. Contact your insurer early - you may need specialized STR insurance to comply.
Neighbor Notification Requirement
Sault Ste. Marie takes a proactive approach to neighbor relations:
"Operators must provide contact information to neighbors so they can be reached directly with any concerns." Sault Ste. Marie STR Licensing Guidelines
This requirement:
- Give neighbors your contact info before operating
- Enables direct communication - issues resolved before escalation
- Builds community relationships
- Reduces formal complaints
Municipal Accommodation Tax (MAT)
Sault Ste. Marie charges 4% MAT:
For platform bookings, the 4% MAT is typically collected automatically. For direct bookings, you're responsible for collecting from guests and remitting to the City.
Staying Compliant in Sault Ste. Marie
Even with more relaxed rules, compliance matters. Here's how to succeed:
- Get your background check early. Processing times vary. Don't let this delay your application - submit the request as soon as you decide to pursue an STR license.
- Schedule all three inspections. Building, Fire, and Finance approvals are all required. Contact each department to understand their process and timeline.
- Get proper insurance immediately. The "City as additional insured" requirement is specific. Contact insurers who specialize in STR coverage - standard homeowner's policies likely won't work.
- Reach out to neighbors proactively. Before your first guest arrives, introduce yourself to neighbors and provide your contact information. This builds goodwill and prevents surprises.
- Display your license number. Like most municipalities, your license number must appear on all listings and advertisements.
- Create clear house rules. You're required to have house rules for guests. Cover quiet hours, parking, garbage, and other potential friction points.
- Remember the March 1st renewal. Your annual license has a specific renewal deadline. Mark it well in advance, because operating on an expired license is operating illegally.
- Keep records. Maintain documentation of all bookings, guest communications, and compliance activities. You may need to produce these for city officials.
Official City of Sault Ste. Marie Resources
Always verify current rules with official sources:
Official Links
- City of Sault Ste. Marie - Short-Term Rental Guidelines
- City of Sault Ste. Marie - By-laws
- Planning Services: 705-759-5375
Common Questions From Sault Ste. Marie Hosts
Do I need to live in the property to run an STR in Sault Ste. Marie?
No! Unlike most Ontario cities, Sault Ste. Marie does NOT have a principal residence requirement. You can operate an STR from an investment property. This makes the Sault one of the most investor-friendly STR markets in Ontario.
How much does the license cost?
$500 for a 3-year licence term, per the City's STR Guidelines. Renewal deadline is March 1. The fee covers the full term, not per year, so budget roughly $167/year effective cost.
What inspections are required?
You need approvals from three city departments: Building Division, Fire Services, and Finance. Each verifies different aspects of compliance - building code, fire safety, and tax/fee requirements respectively.
Do I need a police background check?
Yes. Sault Ste. Marie requires a police background check as part of your license application. This is to ensure operators don't have relevant criminal history that would affect their suitability to host guests.
What insurance do I need?
$2,000,000 liability insurance, and the City must be named as an additional insured on your policy. This is stricter than basic insurance requirements - contact your insurer about adding the municipal endorsement.
Does Airbnb collect the MAT automatically?
Yes. Airbnb and other major platforms collect the 4% Municipal Accommodation Tax on Sault Ste. Marie bookings. For direct bookings, you must collect and remit the 4% yourself.
What's the maximum rental length?
28 consecutive days. Rentals longer than 28 days aren't classified as STRs and have different rules. This is standard across most Ontario municipalities.
Do I need to provide neighbor contact info?
Yes. You must provide contact information to neighbors so they can reach you directly with concerns. This proactive approach helps prevent issues from escalating to formal complaints.
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 your local municipality before making hosting decisions.
Need Help With Sault Ste. Marie STR Compliance?
Nurture can help Northern Ontario property owners navigate licensing, inspections, and ongoing compliance. Whether you're local or investing from afar, we've got you covered.
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