Niagara Falls Short-Term Rental Definition
In Niagara Falls, a short-term rental is defined as any listing where guests stay for 28 consecutive days or less. There are two different types of short-term rentals you can operate within the city. They are a Vacation Rental Unit (VRU) and an Owner Occupied Short-Term Rental (OOSTR). Both accommodation types abide by the same rules and regulations aside from two differences. VRU’s can only operate for 90 days a year and do not require to be a principal residence. Whereas OOSTR’s must be the principal residence of the owner but cna operate for up to 6 total months or 180 days (whichever is the lesser value).
All official booking platforms (Airbnb, Vrbo, Booking.com, etc.) will require you to provide a valid licence number before listing your property for stays under 28 days.
Municipal Accommodation Tax
Niagara Falls imposes the municipal accommodation tax on the purchases of any short-term rentals operating within the city limits. The purpose of the MAT is to support and grow the tourism industry in the City of Niagara Falls and to improve the livability of the City for the residents of Niagara Falls. As of 01/06/2025 the city of Niagara will be applying a fixed MAT on all accommodations. The fixed fee will be determined by the star rating of the property.
- Five (5) Star: Seven Dollars ($7)
- Four (4) Star: Six Dollars ($6)
- Three (3) Star: Five Dollars ($5)
- Two (2) Star: Four ($4)
- Unrated properties: Five ($5)
Quick Summary of Niagara Falls Airbnb Rules
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- Short-term rental: 28 consecutive days or less.
- Principal residence only: Property must be the host’s primary home (183+ days/year) only when the property is registered as an owner occupied short-term rental.
- Must be a permanent resident of Canada.
- Must abide by the zoning laws.
- Licence required: Apply online or in person. The fee is $500 initially and subsequently $250 annually.
- Licence number: Must be displayed on all listings and advertisements.
- Long-term rentals (28+ days): Do not require licensing.
- Municipal Accommodation Tax (MAT): Oakville imposes a fixed fee based upon the rating of the property on rental sites.
Principal Residence Rule
In Niagara Falls, you may only operate a short-term rental at your principal residence. A property qualifies as a principal residence if:
- It is a housing unit that you own (alone or jointly) or have the right to occupy.
- You live in the property for at least 183 days per year.
- You are a permanent resident of Canada.
- You designate the property as your principal residence on government records.
This rule prohibits investment properties, secondary homes, or non-owner-occupied condos from being used as Airbnbs in Oakville.
How to Apply for an Niagara Falls Short-Term Rental Licence
Step-by-Step: online applications are available for VRU’s here and OOSTR’s here.
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- Complete the application form online or submit in person.
- Provide required documents:
- Proof of age (must be at least 18 years old).
- Proof of $2 million liability insurance coverage.
- Proof of principal residence (utility bill, tax form, driver’s licence, etc.) in the case of a OOSTR
- Contact information for the responsible host/owner.
- Written permission from the landlord if you are a tenant.
- Written approval from the condo board if your property is in a condo.
- Fire safety plan and evacuation procedures.
- Site plan showing parking and a floor plan of rental space.
- Pay the $500 initial licensing fee and the annual $250 fee for the remainder of term
Niagara Falls STR Enforcement & Penalties
Niagara Falls enforces its short-term rental by-law through:
- Licence suspension or revocation.
- Fines under the Provincial Offences Act.
- Unpaid fines added directly to property tax bills.
- Unannounced inspections of licensed short-term rentals.
Oakville implements a demerit point system very similar to the system used by the province for penalizing drivers. The more complaints or violations accrued by the property will decide the penalties that the home owner(s) will face.
Failure to comply can result in significant financial penalties, including daily fines for operating without a licence.
Niagara Falls Airbnb Market Potential
- Average Nightly Rate: $175 – $275 depending on property size and location.
- Premium Properties: $500+ during peak summer months (luxury condos, townhouses and homes).
- Occupancy: Averages 77% year-round, peaking as high as 95% in the summer.
- Seasonal Revenue: Premium homes can earn $3,500+ per month during the summer and peak holidays in Niagara Falls
Why is Niagara Falls great for both Hosts and Guests?
Niagara Falls is one of the most famous natural attractions in the world. One of the seven natural wonders of the world, the city draws in over 12 million visitors a year just to catch a view of the natural beauty and wonder. Guests won’t just be coming to experience the falls, whether it is the lively dining and nightlife of Cliftons Hills or nearby wineries and casinos. With the natural beauty of the Niagara region visitors will be flocking year round to experience a true example of natural beauty. The city boasts a mix of natural beauty, cultural activities and easy access to the Greater Toronto Area and the United States makes Niagara Falls a convenient and unforgettable destination for travelers of all ages.
Rental hosts will benefit from this steady stream of tourists looking for furnished high quality short-term rentals. With a demand for hotels that is greater than the available supply, guests are consistently turning to private short-term rentals as they offer more space, comfort and privacy than a 2 bedroom hotel would at relatively similar nightly rates. Whether that is the modern condos with views of the falls, family friendly homes, or luxury rentals in the wine regions. Niagara Falls offers rental hosts a reliable and profitable market that provides guests with the unique and personal stays they would be looking for.
Why Choose Guestable for Your Niagara Falls Airbnb
- Best Revenue Optimization Strategies:
- Data-driven pricing and dynamic adjustments to maximize your earnings.
- Tailored Management Solutions
- Customized strategies to meet your unique hosting goals.
- Client-Focused Communication:
- 24/7 support with transparent updates and real-time communication.
- Dynamic Rental Approach:\
- Expertise across both short- and mid-term rental markets, with seasonal demand forecasting.
- Guest Experience & Ground Support:
- Local presence across the GTA to deliver hands-on service to both hosts and guests.
Niagara Falls Airbnb FAQ
- Can I operate a short-term rental without a licence in Niagara Falls? No, regardless of the property being an owner occupied short-term rental or a vacation rental unit you will need to be approved for and provide a short-term rental licence to operate in Niagara Falls.
- How long does the licence process take? The online application takes minutes to complete. Full approval may take 2-3 weeks though, it is all depending on the length of time for inspections and document submission.
- Do I need to collect any tax from guests? Yes, alongside the standard GST and HST collected on all sales/purchases hosts will need to collect and remit the standardized MAT to the municipality.
Final Word for Hosts
Niagara Falls vacation rental market thrives because of what it offers. Travelers come from all over the world to experience the natural beauty and wonder of the Falls alone. The region offers world class food, wineries, hospitality, casinos and natural beauty outside of its main attractions. The bustling hospitality and events industry attracts business travelers and professionals whether for summits and events or just relaxation. Paired with a personalized and professional rental plan, hosts can expect to maximize their returns while offering guests of all kinds unforgettable stays in one of the premier tourist attractions in the country. Explore our services in Airbnb Management Niagara Falls for comprehensive support in managing your property in compliance with local regulations.