What’s Really Going On with Short-Term Rentals in Southern Georgian Bay?

Here is an inside look at what’s happening around Southern Georgian Bay when it comes to short-term accommodations (STAs).

As a local realtor, I’ve been getting a lot of questions lately — especially with tourism booming in 2025. Whether you’re a homeowner considering listing your property or a visitor dreaming of a cozy chalet getaway, it’s important to understand the current rules and landscape in Collingwood, Blue Mountains, and beyond. (Heads-up: regulations can change, so always double-check with your local municipality.)

The Big Picture: Why It Matters

Short-term accommodations like Airbnb have reshaped our region — boosting local businesses but also raising concerns about housing affordability, neighborhood character, and safety. In response, many municipalities have introduced licensing programs to strike a balance between welcoming visitors and protecting community interests.

Key focus areas: safety standards, tax compliance, and limits to prevent “ghost hotel” situations.

Collingwood: Licensed, with Limits

Collingwood’s Short-Term Accommodation (STA) Licensing Program launched in early 2024 and is fully in place for 2025. Here’s what you should know:

• License Cap: Up to 200 licenses, prioritizing owner-occupied homes (you must live there full-time).
• Requirements: Fire safety inspections, proof of insurance, and a $500 fee. Investment-only properties aren’t eligible to help preserve long-term housing.
• Operational Rules: Max 10 guests, enforced quiet hours, and a demerit system for complaints (noise, parking, etc.). Fines start at $500.
• Taxes: 4% Municipal Accommodation Tax (MAT) + HST, typically collected through platforms like Airbnb. If you’re interested in hosting, apply early — licenses fill up fast.

Blue Mountains: Zoning Counts

Blue Mountains has its own set of firm but clear rules:

• Licensing: Required for rentals under 30 days. Not all zones allow STRs (for example, low-density residential areas are excluded).
• Costs & Documents: $80 pre-screening, annual renewal, site and floor plans, parking details, and $2M liability insurance. Maximum occupancy is two people per bedroom, plus two extra.
• Enforcement: $2,500 fines for operating without a license. Noise bylaws and responsible operator agreements help curb party houses.
• Taxes: Same MAT and HST apply, and income must be reported provincially and federally.

Georgian Bay Township & Surrounding Areas

Other nearby regions follow similar frameworks:

• Georgian Bay Township: Light use (up to 21 days/year) costs $250; heavy use is $1,000. Expect building code checks, septic inspections, and a local contact requirement.
• Wasaga Beach, Clearview, Tiny Township: Focus on safety, principal residence requirements, and permits for commercial operations. Federal/provincial tax rules kick in over $30K/year.

Weighing the Pros and Cons

Pros: STRs can generate $20K+ in a strong season and help support local businesses.
Cons: Rising fees, operational restrictions, and ongoing debates about housing impacts.

My advice: Talk to a knowledgeable realtor (I’m always here to help) to understand property eligibility and local rules. Tools like AirDNA can provide market insights, and if you’re a guest, booking licensed properties ensures a smoother, more responsible stay.

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