Appeal of Township of Tiny’s Short Term Rental Accommodation Licensing By-law dismissed by Ontario Court of Appeals

Aerial photo of Concession 14 Beach
June 12, 2026 - 3:39pm
Type
Press Releases

(Tiny, Ontario) The Township of Tiny is pleased to share that the legal appeal filed by Tiny Township Association of Responsible STR Owners to quash our Short-Term Rental Accommodation Licensing By-law (STR By-law) has been dismissed by the Ontario Court of Appeals with costs awarded to the Township on June 11, 2026.

The Township’s STR By-law was passed in 2022 after a lengthy multi-year process, creating a new set of rules and regulations for Short-Term Rental (STR) operators aimed at decreasing the number of STR-related complaints in Tiny. 

The Association of Responsible STR Owners appealed a March 2025 decision by the Ontario Superior Court. In his decision Justice Leibovich stated that “The regulations and restrictions have been implemented lawfully and properly by the Township based upon detailed investigation of the issues with community feedback.” [Subsection 49 pg. 19, March 24, 2025].

This higher court decision confirms that local municipalities have the legal right to implement a program to regulate and licence STR operations which is good news for all municipalities in Ontario struggling with this same issue. 

“Tiny’s STR By-law has reduced the number of STR complaints for our By-law department.  We are grateful that both the Ontario Superior Court and the Ontario Court of Appeals have recognized that our STR By-law assists the Township with creating a safe and welcoming place for visitors while balancing the desire of residents to rent out their properties for supplemental income. These decisions reconfirm the lengthy efforts made by the Township to foster a safe, vibrant community” said Mayor David Evans. “This is an important moment for the Township of Tiny and for municipalities across Ontario and confirms that municipalities have the authority to regulate short-term rentals fairly and responsibly. For Tiny, it also confirms that the work done by Council, staff, legal counsel, and the community was lawful, thoughtful, and necessary.”

Ontario Court of Appeal cited in their decision that “the Township has the power under the Municipal Act to implement a licensing scheme with respect to STRs, whether or not STRs meet the definition of businesses, and the Township did so to further valid statutory purposes. This is a complete answer to the Association’s position that the licensing scheme as a whole is invalid.” [Subsection 47 pg. 19, June 11, 2026].

“The intent of our STR By-law was to respond to a myriad of community concerns about STR properties ranging from safety, noise, and parking,” said Chief Administrative Officer Robert Lamb. “While the majority of STR owners are following the rules of our STR By-law, we are now able to proceed with over two years of charges against operators that do not want to follow the rules that have been held up in court pending the decision of this appeal. We are hopeful that this will finally conclude the STR issues in the Township and provide municipalities with the knowledge that they can also find ways to meaningfully regulate short-term accommodation units in a fair and balanced manner.”

“This has never been about one group winning and another group losing. It has been about balance, respect, and protecting the character of Tiny,” said Mayor David Evans. “We live in a special place. Our job is to protect that while still allowing reasonable opportunities for visitors and responsible operators. With this decision now behind us, I hope we can move forward together with a renewed focus on being good neighbours.”

To read the legal decision, learn more about the STR By-law, or to apply for a licence, please visit www.tiny.ca/STR

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