Running short-term rentals in Niagara-on-the-Lake, where every rental type has its own licence and its own outdoor space rule
If you manage or clean short-term rentals in Niagara-on-the-Lake, the town sorts every property into one of five types, from a bed and breakfast to a villa, and licenses it under By-law 2025-032. New licences for cottage rentals, country inns, vacation apartments and villas were paused from December 10, 2024; the town's page now says new applications are accepted for all rental types again. A licence cannot be transferred, and every stay under 28 days pays a 4% accommodation tax. Upbridge's AI operations assistant, Cleo, works over WhatsApp with vacation rental operators and cleaning companies and organizes the cleanings and the inventory for each place.
The rules here
All of this is set by the Town of Niagara-on-the-Lake. We read the town's pages and the local reporting on October 24, 2026, and amounts are in Canadian dollars.
| Topic | What it says | Status | Since | Source |
|---|---|---|---|---|
| Licence | A short-term rental needs a town licence as a bed and breakfast, cottage rental, country inn, vacation apartment or villa, and a licence cannot be transferred to another person. A new application costs $800 and a renewal $600, plus the annual fee in the town's user fees by-law, which is not prorated. | In force | By-law 2025-032 | Town of Niagara-on-the-Lake |
| Timing | From a complete application to a valid licence can take up to ten weeks, and new applications filed between November 1 and December 31 are issued the following year. Licences expiring December 31, 2026 that are not renewed before then become invalid and need a new application. | In force | Page not dated | Town of Niagara-on-the-Lake |
| Documents | An Electrical Safety Authority certificate every four years, a certificate of insurance each year naming the town as an additional insured, and a scale site plan showing the parking and the outdoor amenity area, at least 47 m² for a bed and breakfast and 135 m² for a cottage rental. | In force | Page not dated | Town of Niagara-on-the-Lake |
| Accommodation tax | The Municipal Accommodation Tax is 4% from January 1, 2025, up from 3% in 2024, on stays of less than 28 consecutive days. Short-term rental operators remit it after every quarter, by the last day of the following month. | In force | January 1, 2025 | Town of Niagara-on-the-Lake |
Council paused new licences for cottage rentals, country inns, vacation apartments and villas from December 10, 2024, while staff studied whether to cap them, and renewals continued. The town's page now shows new applications open for every type, but we did not find the date the pause ended. This is not legal or tax advice, and Upbridge does not file anything for you: no registrations and no tax returns.
How it works on the ground
The Shaw Festival announced on August 25, 2026 that its 2027 season runs from March 31 to December 23. That is nine months of performances, and a guest who books around a show may only stay a night or two.
Because a licence cannot be transferred, a sale is the moment a rental can lose its licence. During the pause, councillors made an exception for that case: a new owner of an existing short-term rental can reapply, and a councillor told Niagara Now in February 2025 that the by-law gives them a year from taking possession to do it.
The licence file has dates that come back on their own schedule: the insurance certificate every year, the electrical certificate every four, the renewal before December 31. A manager with a dozen licensed homes has a dozen of each to track.
Where Upbridge fits
A one-night stay before a matinee leaves little time between guests. Upbridge creates the cleaning task as soon as the checkout comes in from Guesty, Hostaway, Lodgify, Uplisting or an iCal link, with a room-by-room photo checklist, so the cleaner knows which rooms were used and the owner sees them done.
For a bed and breakfast, inventory per property follows the breakfast supplies along with the linens, and deducts what each stay used. Guests receive the guest guide on their phone with parking, the way in and the walk to the theatres.
If you run a cleaning company in Niagara-on-the-Lake
Short theatre stays mean changeovers on weekdays as well as weekends. Through the cleaning company account, the checkouts of all your clients appear on one schedule ordered by date, so midweek turnovers are planned with the weekend ones, and each client is still yours.
Questions about short-term rentals in Niagara-on-the-Lake
Is Niagara-on-the-Lake issuing new short-term rental licences?
The town's short-term rental page says new applications are being accepted for all rental types. New licences for cottage rentals, country inns, vacation apartments and villas had been paused from December 10, 2024.
How much is a short-term rental licence in Niagara-on-the-Lake?
The application fee is $800 for a new licence and $600 for a renewal, and the annual fee in the town's user fees by-law is charged on top, without proration.
What is the accommodation tax in Niagara-on-the-Lake?
4% since January 1, 2025, on stays of less than 28 consecutive days. Short-term rental operators remit it quarterly.
More questions
When does the Shaw Festival's 2027 season run?
From March 31 to December 23, 2027, according to the festival's announcement of August 25, 2026.
Sources
Checked on October 24, 2026
- Town of Niagara-on-the-Lake, “Short Term Rentals”, undated, read October 24, 2026.
- Town of Niagara-on-the-Lake, “Municipal Accommodation Tax”, undated, read October 24, 2026.
- Town of Niagara-on-the-Lake, “Council approves changes to Short Term Rental licensing and Special Event Permit fees”, December 13, 2024.
- Julia Sacco, Niagara Now, “Councillors make exception for short-term rental pause”, February 5, 2025.
- Shaw Festival, “Shaw Festival announces 2027 playbill”, August 25, 2026.