Submission to the Ontario Sharing Economy Advisory Committee

Transcription

1 FEDERATION OF ONTARIO BED & BREAKFAST ACCOMMODATION Hospitality Lives Here! Submission to the Ontario Sharing Economy Advisory Committee Regulatory Proposals for Private Home Sharing and B&Bs September 2016

2 Index FEDERATION OF ONTARIO BED & BREAKFAST ACCOMMODATION Hospitality Lives Here! Regulatory Proposals for Private Home Sharing and B&Bs Executive Summary... 1 FOBBA Who We Are... 6 B&B Industry in Ontario Growth in Private Home Sharing Issues & Concerns Current Regulatory Framework for B&Bs in Ontario Regulatory Framework for B&Bs/ Tourist Accommodations in Other Provinces Regulatory Framework for Private Home Sharing in Ontario Proposed Regulatory Framework for Permitted B&Bs Appendicies Appendix A - FOBBA Standard Policies and Procedures Appendix B - FOBBA Level 1 Inspection Form Appendix C - FOBBA Level 2 (star-rating) Inspection Form Appendix D - Summary of 2015 Ontario B&B Industry Survey 36 Appendix E - Regulatory Regime in Niagara-on-the-Lake 74 Niagara-on-the-Lake - Short-term Rental Package 76 Appendix F - Regulatory Regime in Stratford 123 Appendix G - B&B Regulatory Regimes in Other Ontario Municipalities.. 125

3 1 Executive Summary Ontario has formed an advisory committee from key ministries to look at the implications of the sharing economy in a number of sectors, most notably home-sharing and ride-sharing. The Federation of Ontario Bed & Breakfast Accommodation ( FOBBA ), the Stratford Area Bed & Breakfast Association and the Niagara-on-the-Lake Bed & Breakfast Association (collectively referred to as the B&B Associations ) are pleased to make this joint submission in respect of the growth in private home sharing. We look forward to an opportunity to discuss our proposals. Private home sharing has experienced rapid growth in recent years facilitated by the emergence of internet booking sites, such as Airbnb. It has been estimated that there are over 15,000 host listings in Ontario alone. This rapid growth has led to a number of issues and concerns that regulators, at both the provincial and municipal levels, must consider including the impact on job creation and existing businesses, new investment, regulatory compliance, taxes, neighbour concerns, criminal and noise complaints. As well, many in the hotel/ motel industry feel that private home sharing creates an uneven playing field and leads to the avoidance of taxes and other public safety regulations. These are not new issues and there are many sources in Ontario from which to draw guidance. Bed & Breakfasts ( B&Bs ) are a long established form of private home sharing and have operated in Ontario for many years. FOBBA was formed in 1987 as a result of similar concerns raised by the Hotel/ Motel industry. FOBBA was formed as an industry association that would enforce operating standards and deal with guest complaints. However, membership is not mandatory and most B&Bs operating today in Ontario do not belong. In some municipalities, such Niagara-on-the-Lake and Stratford, the issues associated with small scale tourist accommodation like those outlined in the shared economy initiative have been dealt with over the past two decades with the establishment of extensive bylaws with the intent to protect the guest, and respect the community and neighbours. So while there are excellent frameworks in Ontario to manage the B&B industry, Ontario B&Bs are not currently subject to mandatory self-regulation, such as is found in Quebec and the Maritime provinces. Even in jurisdictions where strict licensing requirements are in place, compliance is a challenge that is only exacerbated by the ease by which properties can be listed on booking sites such as Airbnb. Private home sharing, of the types listed on Airbnb, includes traditional B&Bs along with many other forms (private homes, condominiums, cottages, etc) of short-term accommodation. Very often the owner is not present during the rental period and the arrangement does not always

4 2 include breakfast. In fact, most listings on Airbnb are not B&Bs at all, but simply short-term rentals. We believe that booking sites, such as Airbnb, are not in themselves the issue. They can be viewed as an innovative or disruptive force that will lead to change in an existing industry. Many traditional B&Bs consider such sites to be a good source of bookings. The primary issues are the protection of the guest, the guest experience, and respect of the neighbours and the community in which the accommodations operate. These should be the focus of any new initiatives in the accommodation sector. We would submit that the small scale tourist accommodation sector, which is the focus of this private home sharing discussion, can be divided into two quite distinct categories: Hosted accommodation where the owner/manager lives on the premises (such as Hosted B&B s); and Unhosted accommodation where the owner/manager is absent from the property (such as a cottage or condominium rental). Each of these categories has their own characteristics and challenges with respect to the protection of the guest, the guest experience, and respect of the neighbours and the community in which the accommodation operate. While our discussion and recommendations will focus on the Hosted Accommodations many of the principles apply equally well to all accommodations. We believe that municipalities are best placed to develop and enforce regulations dealing with private home sharing. Such regulations would apply to all forms of short-term accommodation other than those already subject to regulation such as hotels, motels, permitted B&Bs. Our concern is that there is no common definition of a permitted B&B in Ontario. Our recommendations focus on resolving this issue in a relatively simple manner. Currently there are approximately 1,600 B&Bs in Ontario listed on BBCanada.com (the primary listing and booking site for B&Bs in Canada). Of these, approximately 270 belong to one of our three B&B Associations and all are subject to minimum operating standards and inspections. Other B&Bs operating in Ontario are not subject to FOBBA standards. Some municipalities have passed specific B&B bylaws containing a B&B definition and imposing size restrictions (# of bedrooms) or other limitations. Others have no specific rules or deal with B&Bs within zoning bylaws. Some municipalities (e.g. Stratford and Niagara-on-the-Lake) carry out their own inspections using municipal bylaws officers and/or fire department officials. There is no consistency across the province leading to a patchwork of municipal regulation and definitional differences. Our B&B Associations believe that the province should adopt a uniform definition of a Permitted or Hosted B&B and require B&Bs to meet minimum operating standards. FOBBA defines a B&B as:

5 3 An owner-occupied, private, residential dwelling that is the owner s primary residence and in which the owner has control of the environment. It provides temporary accommodation not exceeding 28 consecutive days, and amenities and services auxiliary to guest accommodation, including the preparation and service of breakfast for an allinclusive fee. Our B&B Associations require all B&B members to meet this definition and operate in accordance with our ethics and operating standards, including adequate liability insurance, an Ontario Business License, and importantly, owners that are required to live within the premises. As well, FOBBA members are inspected, rated and approved in their compliance with FOBBA s Quality Assurance Program. This involves a paid inspection from a third-party company following an extensive checklist to ensure that we all meet the same standard. The inspection determines a Star Rating that can be displayed by the owner. FOBBA believes that all forms of short-term accommodation should be subject to minimum requirements to insure the protection of the guest, the guest experience, and respect of the neighbours and the community in which the accommodation operate. The minimum protection of the guest is assured through compliance with fire code, building code; adequate liability insurance; a site inspection; and registration of valid business license. The minimum requirement for the respect of neighbours and the community is the compliance with local bylaws including land use, noise and parking, and compliance with any condominium agreements. The standards of FOBBA and some municipalities, such as Stratford and Niagara-on-the-Lake exceed these requirements, so there is no need to reinvent a regulatory framework. There is a need to apply it province-wide. It is our position that private home sharing can be a vibrant, innovative way to provide accommodations to guests across Ontario. However, there is no need to suggest that it must operate outside of any regulatory structure. Traditional B&B guests are attracted by the personalized atmosphere while experiencing unique homes, meeting other guests and enjoying the home-cooked breakfasts. This type of accommodation is an important alternative to provide in Ontario to both tourists and local guests. Our B&B Associations propose the following for consideration: While the municipal level has the most significant role to play (see below) in private home sharing regulation, we believe that province should take a key leadership role to ensure consistency of application (e.g. uniform definitions and development of a consistent regulatory framework for implementation by municipalities).

6 4 Municipalities are best placed to enact and enforce bylaws that insure the protection of the guest and respect of the neighbours and the community in which the accommodation operates. The minimum protection of the guest is assured through compliance with the fire and building codes, maintenance of adequate liability insurance, an independent site inspection, and registration of a valid business license. The minimum requirement for the respect of neighbours and the community is the compliance with local bylaws including land use, noise and parking, and compliance with any condominium, apartment or neighbourhood agreements. Municipalities may or may not seek to regulate private home sharing, although we believe they should. In some cases municipalities may seek to apply outright bans on certain forms of private home sharing. In other cases, limitations could restrict private home sharing to the rental of an owner s primary or secondary residence on a shortterm basis (less than some number of consecutive days and less than some number of days per year). This activity might in some cases be permitted without municipal regulation, but would still be subject to the Fire Code and the terms of private contracts (e.g. condominium corporation bylaws). Without provincial leadership on this issue, it is likely that the accommodation sector would face inconsistent regulation across the province frustrating operators and negatively impacting the guest experience. As B&B Associations, our primary concern with municipal regulation targeting private home sharing is that it could be unnecessarily applied to Hosted B&Bs. As is the case in many other jurisdictions, we believe that Hosted B&Bs should be exclude from any outright bans or limitations, as long as there is a regulatory framework in place setting out permit requirements and operating standards for B&Bs. We propose the adoption of a uniform definition of a permitted B&B in Ontario in order to avoid definition differences at the municipal level. Ontario would adopt the FOBBA definition of a B&B and restrict its use to complying operations. Municipalities would still have the option to pass zoning or B&B bylaws, using the Ontario B&B definition along with whatever restrictions the local municipality may feel to be required within its jurisdiction. This would allow municipalities to issue B&B permits and enforce local bylaws (zoning, parking, signage, etc.) and fire regulations. Quebec and the eastern provinces require provincial government registration and inspection to ensure that B&Bs meet operating standards. These requirements protect the guest and enhance the guest experience. We recommend that B&Bs in Ontario be required to become members of FOBBA (or one of the member associations of FOBBA). This would complete the journey towards self-regulation started in 1987 and ensure compliance with basic operating standards consistently across the province. The FOBBA star rating would be optional for those B&B who wish to participate in that program

7 5 from a marketing standpoint. B&B operating standards and inspections would be the sole responsibility of FOBBA, not the municipalities. In order to implement these recommendations, we request that the province pass legislation defining a Permitted Bed & Breakfast as a B&B member of FOBBA operating in compliance with FOBBA s definition of a B&B and FOBBA s operating standards. Furthermore the legislation would direct municipalities to use the FOBBA B&B definition in any relevant municipal bylaw. Businesses could not refer to themselves as B&Bs unless they were in compliance with such legislation. Enforcement to protect guests would come firstly through the requirement to join FOBBA or one of its member associations; secondly, through municipal bylaw enforcement; and finally, provincial notification of FOBBA and the relevant municipality whenever a business licence is issued to a business identifying itself as a B&B. These changes to the meaning of a permitted B&B in Ontario will directly impact the guest experience by ensuring that all operations marketed as B&Bs meet guest expectations about the type of accommodation, the services and meals provided and the standards under which we expect B&Bs to operate. Guest safety is also ensured by mandatory registration and compliance with provincial regulations and municipal bylaws. Only when we have a common understanding of a permitted B&B will municipalities be able to develop regulations to address concerns about other forms of private home sharing. Finally, these changes will move Ontario closer to the types of B&B regulatory structures currently in existence in Canada s eastern provinces (Quebec and the Maritimes) helping us ensure that we meet the expectations of Canadian guests from outside Ontario. We request a meeting to discuss our proposals and next steps. Please contact either Doug Frost (president@fobba.com) or Don Matthews (vp@fobba.com).

8 6 FOBBA Who We Are History of FOBBA FOBBA is the professional association representing the Bed & Breakfast industry in Ontario. Members agree to adhere to a high set of consistent standards defining cleanliness, comfort, quality, safety and hospitality. FOBBA was formed in 1987 as a response to the efforts of the hotel lobby of that day to eliminate B&Bs as an accommodations option in Ontario. Their view was that B&B should not exist as unregulated providers of short-term accommodation and should be subject to all the same regulations as hotels and motels. This view is similar in many ways to the current discussions about the sharing economy and private home sharing. B&Bs, in fact, are the original form of private home sharing. A compromise between the provincial government and industry was reached with the formation of FOBBA in 1987 to set operating standards for the B&B industry and implement a public complaints system. These actions satisfied the parties and no further government action was taken. However, there was no mandatory requirement implemented for B&Bs to join FOBBA. As a consequence most B&Bs operating in Ontario today do not belong to FOBBA and many do not comply with the FOBBA B&B definition or its operating standards. FOBBA Today FOBBA today has approximately 100 direct B&B members and three local association members (Fergus/Elora, Stratford and Niagara-on-the-Lake). Together we represent approximately 280 B&Bs. As an industry association FOBBA has several functions including: 1. Setting operating standards and ensuring compliance through our quality assurance system. This system includes ensuring that the B&B meets the agreed B&B definition (see below), and basic (Level 1) operating standards. All B&B members are also subject to an independent Level 2 amenities-based inspection which results in the awarding of a star rating (5 star system). 2. Delivering member education and development through our annual conference and resource materials available on the FOBBA website.

9 7 3. Assisting members market themselves by using the star rating as a differentiating factor. Each member has a webpage on the FOBBA website to promote their B&B with link to their own websites and booking engines. 4. Promoting the FOBBA brand with the travelling public and driving traffic to the FOBBA website. 5. Providing members with marketing opportunities through our alliance with Resorts of Ontario ( ROO ). B&Bs can participate in specific ROO digital marketing programs aimed at both the local and international markets. 6. Advocating B&B industry views on a variety of issues. These in past have included the Fire Code, swimming pool regulations, safe drinking water regulations, and now the sharing economy. B&B Definition There is currently no standard provincial definition of a B&B in Ontario. Some municipalities have passed B&B containing definitions. Although similar, there are many variations. As municipalities consider the need to regulate short-term accommodation, FOBBA believes that it would be very helpful to have one provincial B&B definition used by all. FOBBA defines a B&B as follows: An owner-occupied, private, residential dwelling that is the owner s principal residence, and in which the owner has control of the environment. It provides temporary accommodation not exceeding 28 consecutive days, and amenities and services auxiliary to guest accommodation, including the preparation and service of breakfast for an all-inclusive fee. One of the key requirements is that the B&B be the owner s primary residence. FOBBA B&Bs are all hosted. An onsite host in control of the environment eliminates many of the concerns raised about unhosted short-term accommodations, such as noise complaints and property damage. Hotels and motels which provide a breakfast cannot be B&Bs are they are not primary residences. As commercial operations, they misrepresent themselves by using the term B&B. A FOBBA member B&B must provide breakfast. This is an important part of the guest experience. We are very concerned with the number of so-called B&Bs who simply provide short-term accommodation.

10 8 FOBBA Quality Assurance Program (standards, inspections and ratings) A FOBBA Inspected and Approved Bed & Breakfast is committed to meeting, maintaining and exceeding FOBBA standards. FOBBA s Code of Ethics is as follows: 1. All FOBBA Bed and Breakfast hosts are required to provide: A high standard of cleanliness Friendly guidance and assistance to guests about local attractions and places of interest Provisions for the safety protection of guests consistent with regulatory guidelines Quality furnishings and linens in guest rooms An adequate number of bathrooms, none shared with hosts, with quality fixtures and sufficient hot and cold water supply A breakfast of consistently high quality, which is included in the room rate 2. All hosts shall have a published, reasonable deposit and cancellation policy 3. All hosts are required to carry and prove adequate liability insurance. 4. Hosts will register their business name in accordance with the laws of the province of Ontario and obtain a Master Business License number, keeping it current every five years. 5. All hosts shall provide accommodation, services and meals consistent with their own advertising. 6. All hosts shall respond reasonably, responsibly and promptly to guest complaints or concerns if and when they arise, either verbally or in writing as appropriate. All hosts agree to comply with the complaints process of the FOBBA Executive regarding the resolution of any complaints reported to FOBBA. 7. All hosts agree to implement the recommendations of the complaints committee. 8. Failure to implement the recommendations of the complaints committee will result in withdrawal of the Federation Certificate of Membership.

11 9 9. FOBBA members understand and support the principles and values expressed in our Five-Year Strategic Plan, which is available to any interested party on request. FOBBA has developed detailed operating standards and procedures which form the basis of our inspection system. A copy can be found in Appendix A. Members of FOBBA and its local member associations (Fergus/Elora, Stratford and Niagara-onthe-Lake) are subject to a Level 1 inspection which is designed to ensure compliance with operating standards. Copies of the Level 1 inspection forms are included in Appendix B. FOBBA members are also subject to a Level 2 amenities-based inspection which establishes their star rating on a five star scale. B&Bs who belong to a local association, but are not full FOBBA members, are not currently subject to this requirement. A copy of the inspection form is included in Appendix C. Level 2 inspections are carried out by Frontline Global, an independent professional inspection company. While all FOBBA inspected B&B s attain the basic level, from there various additional facilities and features affect the star rating, based on what is important to most B&B visitors. While every FOBBA member is unique in their own way, here is a summary of what the ratings represent to our valued guests. Basic Clean, with simple furnishings, meeting all basic quality standards. Moderate With furnishings and facilities above the basic standards. Comfortable Well appointed, above average facilities and some amenities. Superior Excellent quality furnishings, wide range of amenities and services; private or ensuite facilities available. Luxury Exceptional quality and décor; an extensive array of first class services and facilities; all guest rooms with ensuites.

12 10 B&B Industry in Ontario The B&B industry in Ontario is currently quite fragmented. There is no agreed B&B definition and no requirement to belong to FOBBA or adhere to FOBBA s operating standards. Members of FOBBA and local associations in Fergus/Elora, Stratford, Niagara-on-the-Lake and Muskoka do adhere to FOBBA operating standards. That may represent approximately 300 B&Bs, yet there are over 1,500 B&Bs listed in Ontario on BBCanada.com. Many of these operations would not comply with the FOBBA definition or standards and many are not hosted. There are other B&B associations in Ontario, but they are primarily local marketing associations with no agreed standards or inspection processes in place. In an effort to find out more about the B&B industry in Ontario, FOBBA and BBCanada.com complete an industry survey in late The report summarizing the results is included in Appendix D. At that time there were almost 2,000 Ontario B&Bs listed on BBCanada.com. Since then the number has decreased. This decline primarily reflects closings and retirements. As the chart below indicates, the decline is spread across the province. Region RTO South Western Ontario Niagara Falls & Wine Country Hamilton, Halton & Brant Huron, Perth, Waterloo & Wellington Greater Toronto Area York, Durham & Hills of the Headwaters Bruce Peninsula, S. Georgian Bay & L. Simcoe Kawarthas & Northumberland South Eastern Ontario Ottawa & Countryside Haliburton Highlands to the Ottawa Valley Muskoka, Parry Sound & Algonquin Park a North East Ontario b North Central Ontario c North West Ontario Total 1,954 1,584

13 11 There were 409 survey responses received from across the province (20% response rate), with all RTO s represented. Key findings are summarized below. B&B Profile 2/3 have operated for less than 10 years Operate as a spousal partnership in 70% of the cases 90% have 4 or fewer rooms 50% are located in the countryside, 90% outside of a larger community (note that there are only 54 B&Bs listed in the GTA) 90% of operators live on the premises 70% have less than $30,000 in revenue, 25% have less than $10,000 in revenue 25% are planning on retiring from the business within the next 2-3 years Guest Experience Guests come in all ages, but the range most prevalent High proportion (20%+) of returning guests Prefer B&Bs over other types of accommodations; more personalized / friendly Location, setting and absence of other accommodation in the destination also cited as factors in selecting a B&B Highlights of guest experiences included breakfast, guest conversations, features of the setting or house and amenities B&B stay is generally tied to something else in the area whether it be a recreational pursuit, family event or theatre festival (among others) Marketing 75% use some form of online booking service Print advertising is less important but still used for rack cards and in targeted publications (E.g. local directories of event promotions) 72% have their own website Approximately 50% use social media (Facebook or Twitter), but many are looking for more training Only 30% package their B&Bs with other local tourism products or promotions 75% felt that the most valuable form of marketing was online (listings, booking services, websites, social media, etc.)

14 12 Issues A variety of issues were raised including: Increasing regulation (e.g. municipal, fire, zoning, taxes) Accessibility legislation Regulatory reaction to AirBnB Increasing costs (taxes, booking fees) Technology changes & social media Changing guest expectations As the revenue statistics above indicate, many B&Bs are very small home-based business. While this personalized atmosphere is what attracts many guests, these operations cannot afford significant compliance or marketing costs. It may be for this reason that small B&Bs have not been willing to join FOBBA or local B&B associations. It is essential that this reality be kept in mind in developing a regulatory framework.

15 13 Growth in Private Home Sharing Issues & Concerns Private home sharing has experienced rapid growth in recent years facilitated by the emergence of internet booking sites, such as Airbnb. It has been estimated that there are over 11,000 host listings in Ontario alone. This rapid growth has led to a number issues and concerns that regulators, at both the provincial and municipal levels, must consider including the impact on job creation and existing businesses, new investment, regulatory compliance, taxes, neighbour concerns, criminal and noise complaints. As well, many in the hotel/ motel industry feel that private home sharing creates an uneven playing field and leads to the avoidance of taxes and other public safety regulations. These issues and concerns have been well-documented elsewhere. The question is whether and how governments at the local or municipal level should respond. We will outline our thoughts below, but wish to state very clearly that hosted B&B should be excluded from any regulatory reaction. We appreciate that this may mean tightening up the provincial rules around what qualifies as a permitted B&B. We believe that booking sites, such as Airbnb, are not in themselves the issue. They can be viewed as an innovative or disruptive force that will lead to change in an existing industry. Many traditional B&Bs consider such sites to be a good source of bookings. The primary issue is the protection of the guest, the guest experience, and respect of the neighbours and the community in which the accommodations operate. This should be the focus of any new initiative in the accommodation sector.

16 14 Current Regulatory Framework for B&Bs in Ontario Provincial At the provincial level, there are no specific rules targeting B&Bs. However, B&Bs must comply with provincial laws and regulations in a variety of areas including the Building Code, the Fire Code, Business licences, Health & Safety and Small drinking water systems. On occasion provincial regulations have been adapted to take B&B concerns into account. For example, swimming pools at B&Bs with 5 or fewer suites are exempted from Regulation 565 (Public Pools) if signage is posted. A bed and breakfast is exempt from the provincial food premises regulation unless it can accommodate more than ten guests at one time. If it is eligible for inspection under the Food Premises Regulation O. Reg. 562/90, the food preparation and service area(s) would be rated under Safe Food Counts. The Fire Code is a major consideration for B&B operators. It does not specifically mention B&Bs, but B&Bs with 2 or more rooms for 4 or more guests, come under section 9.3 for boarding, lodging and rooming houses. A B&B with 4 or more suites may be subject to all or part of section 9.9 (Hotels). Some municipal fire departments regularly inspect B&Bs, but most do not. The inspection process seems more common in those municipalities who have introduced B&B bylaws and may also conduct municipal inspections. Municipal Some Ontario municipalities have passed bylaws specifically applicable to B&Bs, but many have not. Some permit B&Bs, others do not. There is no agreed standard provincial definition of a B&B. The result is much inconsistency across province. Over the years, many municipalities have contacted FOBBA to better understand the industry when drafting bylaws. In one instance FOBBA membership was a requirement in the bylaw. While FOBBA has not completed a full provincial bylaw review, we have included an overview of what is known to us about various municipal rules applicable to B&Bs in the following appendices: E Niagara-on-the-Lake F Stratford G Other Ontario Municipalities

17 15 Niagara-on-the-Lake and Stratford have the broadest regulatory framework in place, so we have provide more detail about them. As is very evident from even a cursory review of the various B&B definitions, there are substantial differences in several key areas including: The need for the host to be present and live in the dwelling The need to provide breakfast Limits of the number of bedrooms Limits on other activities Need for permits and annual licenses The more detailed rules obviously exist in municipalities where tourism is significant economic driver. In our view municipalities are best placed to deal with property use bylaws and local enforcement. While that should remain in place, it would be advantageous to have all municipalities use a common B&B definition. In general, the municipal bylaws and requirements focus on zoning, fire, building permits and property use. They do not stray into the area of B&B operating standards. This is reasonable, as municipal officials are not experienced with B&B operations. FOBBA s operating standards and inspections can fill this role and be a key factor in differentiating B&Bs from other forms of short-term accommodation.

18 16 Regulatory Framework for B&Bs/ Tourist Accommodations in Other Provinces We have not completed a detailed review of regulations applicable to various forms of short-term accommodation in other jurisdictions. The following briefly summarizes how B&Bs and tourist accommodations are regulated in other provinces. The majority of B&Bs list their properties on BBCanada.com, so the number of listing provides some information about the size of the industry and its distribution within Canada. Quebec Province # of B&Bs Alberta 277 British Columbia 573 Manitoba 39 New Brunswick 111 Newfoundland 146 Nova Scotia 183 Ontario 1,584 PEI Quebec Saskatchewan Nunavut NWT Yukon 23 Under provincial law, tourism accommodation operators in Quebec are required to have an official classification certificate Total 3,592 and display the sign at the main entrance of the establishment or in the location used to welcome or register tourists. The classification certificate serves as authorization to operate an establishment and is valid for 24 months. The Corporation de l industrie Touristique du Quebec (CITQ) has the mandate of managing the classification program for seven classes of accommodation including hotels, tourist homes B&Bs, resorts, youth hostels, educational institutions and other tourism accommodation establishments. B&Bs are defined as establishments that offer, for an all-inclusive price, accommodation in rooms in a private residence where the operator resides and rents a maximum of 5 rooms receiving a maximum of 15 persons, including breakfast served on the premises. Note that the CITQ database currently lists 1,161 B&Bs licensed in Quebec. This greatly exceeds the 530 listed on BBCanada.com. The CITQ visits and classifies (on a 5 rating star system) all establishments for which it is responsible every two years, with the exception of educational institutions, which are classified every four years. Quebec has taken a leading role in opposing the growth of unregulated short-term accommodation. Owners who frequently rent out their properties through sites such as Airbnb must now register and obtain certificates from the CITQ.

19 17 Maritimes Tourist accommodations in both Nova Scotia and PEI are licensed and inspected by the provincial tourism ministries. There are also provincial B&B associations that promote their own codes of conduct and standards, but membership is not mandatory given the existence of the government inspections. Many B&Bs also choose to be rated by an independent rating company called Canada Select. New Brunswick has business registration requirements and offers a star rating program through Canada Select called Experience Select NB. In Newfoundland, the Tourism Board is leading the effort to elevate the quality of tourism services and attractions available in the province. By establishing common minimum standards, industry partners are aiming to promote tourism organizations that provide quality travel experiences and assist tourism services and attractions improve the way they operate. In the future, these standards must be met in order for tourism services and attractions to participate in provincial marketing and development initiatives, qualify for membership in Hospitality Newfoundland and Labrador (HNL) and participate in partnership/ membership activities with regional destination management organizations. Western Canada The western provinces do not appear to have provincial licensing or rating requirements for B&Bs. However, various municipal zoning bylaws would impact B&Bs, similar to those in place in Ontario. There are provincial B&B associations in place, but membership is not mandatory. Member B&Bs are subject to inspections, but are not star rated. For example, the Saskatchewan B&B Association has established standards and inspects all members. B&Bs are awarded a Black Rooster logo that identifies them as being accredited. The British Columbia Bed & Breakfast Innkeepers Guild was formed in 1993 for education, marketing and representation purposes. Member inns must pass its Quality Assurance Inspection Program in several areas: guests' safety and security, property cleanliness, housekeeping, food preparation areas, and hosts' attention to service and hospitality. Members display the Rest Assured logo. The British Columbia Bed & Breakfast Innkeepers Guild defines a B&B inn as a property that: is situated on residentially or agriculturally zoned land is the principal residence of the owner/operator, who provides personalized hospitality

20 18 is licensed as a Bed & Breakfast inn by the appropriate licensing authority in the community/region serves breakfast included in the room rate is residential or agricultural in character We note that there is growing concern in BC about private home sharing and the collection of taxes. The BC Chamber of Commerce has called for provincial policies that will level the playing field and wants Airbnb to collect and remit sales taxes and destination marketing fees. Vancouver city staff is considering the impact of Airbnb on the rental market. The Alberta Bed and Breakfast Association (ABBA) is a not-for-profit association whose sole purpose is to further the bed and breakfast industry in Alberta by promoting high standards, cooperative marketing and government liaison. All member B&Bs must undergo a rigorous inspection to qualify for membership. The Alberta inspection form is somewhat similar to the Level 1 inspection completed by FOBBA and reflects the same standards of operation. While Alberta B&Bs must pass the inspection in order to qualify for membership in ABBA, they are not star rated. The Manitoba Bed and Breakfast Cooperative is an association of Manitoba B&B operators working together to provide high quality experiences to their guests. Through ongoing professional training and regular inspections (every 4 years by an independent inspector), accredited member hosts adhere to their recognized quality assurance program. B&Bs do not receive a star rating.

21 19 Regulatory Framework for Private Home Sharing in Ontario There are many forms of short-term accommodation offered throughout the province including hotels, motels, B&Bs, cabins, campgrounds and private cottage rentals. Many of these are subject to regulation at the provincial and municipal levels. The key question is whether and to what extent regulations should apply to private home sharing. The first hurdle is a definitional issue. What do we mean by private home sharing? It is basically all forms of short-term rentals outside of commercial operations already subject to regulation. Therefore it should exclude hotels, motels, permitted B&Bs, campgrounds and cabins. However, it would include private single dwelling cottage rentals along with private homes, condominium units, etc. Some have suggested that private home sharing be permitted without regulation for limited periods per year for example, no more than days per year. We do not agree with this approach as it is both unenforceable and it does not address legitimate concerns around the protection of the guest, the guest experience, and respect of the neighbours and the community in which the accommodations operate. How then should they be regulated? Some municipalities, such as Niagara-on-the-Lake, Stratford and Wasaga Beach already have zoning and permit processes in place in order to regulate short-term accommodation. The issue/concern in those locations is the ability of bylaw enforcement to track down and stop illegal accommodations. Bylaw officers respond to complaints, but rarely proactively target an issue for investigation. We believe municipalities are best positioned to develop regulations and enforce bylaws. While the province could suggest an approach, it is really up to the individual municipalities to determine whether the issue demands their attention at the local level and how best to proceed. We believe that it would be prudent for municipalities to implement a licensing process to ensure compliance with local zoning and the Fire Code. These are essential from a guest protection standpoint, no matter the length of the rental. Mandatory registration will also assist with local bylaw enforcement and collection of a variety of taxes.

22 20 Proposed Regulatory Framework for Permitted B&Bs We have suggested above that permitted B&Bs be excluded from new rules or regulations applicable to private home sharing. At the present time however, we have no common provincial definition of a Bed & Breakfast. Some municipalities have included their own definitions in zoning and other bylaws. Other municipalities have no specific rules in place. The term bed & breakfast has a traditional meaning as the offering of short-term accommodation in a private residential dwelling, including the service of a breakfast. Unfortunately the term is also used by commercial establishments, such as hotels, who may include breakfast in the price of a room. Also, not all B&Bs are hosted by the owners and quite often the owner is not present. The absence of the host is a key factor leading to some of the negative issues arising from private home sharing. We believe it would be quite helpful to both the travelling public and B&B hosts to establish a province-wide definition of a B&B. We submit that it should be the definition used by FOBBA which is: An owner-occupied, private, residential dwelling that is the owner s primary residence and in which the owner has control of the environment. It provides temporary accommodation not exceeding 28 consecutive days, and amenities and services auxiliary to guest accommodation, including the preparation and service of breakfast for an all-inclusive fee. This definition would be provincially-mandated requiring its use in all relevant municipal bylaws (e.g. zoning, permits, etc). Municipalities would still have the ability to apply a variety of restrictions to B&Bs within their zoning bylaws. Such restrictions could presumably include # of guest rooms, signage, parking, permit requirements, licensing & renewal requirements, etc. Effectively, municipalities could carry-on as they now do, but the basic meaning of a B&B in the province of Ontario would be uniform. Other forms of private home sharing that do not meet the B&B definition would not be able to refer to themselves as B&Bs. The provincial business license system would also reflect this single B&B definition. The second requirement to be a permitted B&B in Ontario should be membership in FOBBA. This requirement will ensure that all B&Bs meet the operating standards and Code of Ethics of FOBBA thereby enhancing the guest experience and positively impacting tourism in Ontario. Local municipal inspections, where they exist, do not currently address operating standards outside of bylaw compliance, nor should we expect them to. All B&Bs that are members of FOBBA or one of its local member associations (such as Stratford and Niagara-on-the-Lake) must currently comply with our operating standards and are subject

23 21 to a Level 1 inspection. This basic membership requirement would be applied to all B&Bs in Ontario. FOBBA would continue to offer an enhanced membership to those B&Bs who wished to be starrated and participate in other FOBBA marketing/membership programs. We recently polled our membership about this two-tier membership structure (basic and enhanced) and received their support for the change. FOBBA s guest complaints procedures would apply to all Ontario B&Bs and be more highly visible to the public through the FOBBA website and print brochure. These changes to the meaning of a permitted B&B in Ontario will directly impact the guest experience by ensuring that all operations marketed as B&Bs meet guest expectations about the type of accommodation, the services and meals provided and the standards under which we expect B&Bs to operate. Guest safety is also ensured by mandatory registration and compliance with provincial regulations and municipal bylaws. Only when we have a common understanding of a permitted B&B will municipalities be able to develop regulations to address concerns about private home sharing. Finally, these changes will move Ontario closer to the types of B&B regulatory structures currently in existence in Quebec and the eastern provinces. This change will help us ensure that we meet the expectations of Canadian guests from outside Ontario.

24 22 Appendix A - FOBBA Standard Policies and Procedures Definition of a Bed & Breakfast: An owner-occupied private residential dwelling that is the owners principal residence and in which the owner has control of the environment. It provides temporary accommodation not exceeding 28 consecutive days, and amenities and services ancillary to guest accommodation, including the preparation and service of breakfast for an allinclusive fee. The standards set forth below are designed to ensure that a high level of safety, comfort, cleanliness, hospitality and ethics is provided by member B&Bs of the Federation of Ontario Bed and Breakfast Accommodation. They are intended to recognize and respect the diversity and the variety of styles of B&B accommodations, and to meet the expectations of B&B travelers. General Compliance with Prevailing Laws: FOBBA members agree to adhere to the laws of Ontario, and to regulations relevant to operating a small business. The Exterior Local Environment: The area in which the B&B is located must be attractive, desirable and safe. The establishment and surrounding grounds must be attractive and consistently well maintained. Parking areas, walkways and entrances must be safe and well illuminated. Parking: Convenient parking must be available on or near the premises; alternatively, the lack of same must be clearly advertised. The Interior Cleanliness: All interior space including public areas, guest rooms, bathrooms, and dining areas must demonstrate a high standard of cleanliness, be consistently well maintained and provide a pleasant atmosphere. Excellence in housekeeping and maintenance throughout are of primary importance and lack thereof will disqualify a B&B for FOBBA membership regardless of other fine features or amenities offered to guests. Daily refreshing of rooms and private bathrooms is considered required standard procedure. Shared bathrooms should be refreshed more frequently, as required. Fire and Carbon Monoxide Protection: The B&B premises should comply with all local, Version provincial and federal fire regulations. There shall be a minimum of one smoke detector on each floor or more as per code, fire extinguishers on each floor and in the kitchen. An emergency evacuation plan should be posted in each guest room which should be pointed out to guests, along with emergency exits.. A working flashlight should be visible and available

25 23 in each room in the event of a power failure. A carbon monoxide detector is required in all new homes according to the Ontario Building Code is strongly recommended in all B&Bs. Drinking Water: B&Bs with private drinking water systems (i.e. who obtain their drinking water from a non-municipal source) must comply with provincial regulations governing drinking water systems in effect while in operation. Climate Control: Each guest room must have adequate heating and ventilation equipment in consideration of the local climate and this equipment must meet current safety codes. FOBBA recommends adequate heating to ensure comfortable temperatures that conform to provincial regulations. Extra blankets should be available. Maintenance: Guest beds must be made every day unless specifically refused by the guest, or clearly stated in advance that this service will not be provided unless requested. Bathrooms must be cleaned daily or more frequently if necessary. Towels and linens should he changed at least every third day; all trash containers must be emptied daily. Additional housekeeping should be provided as needed. Guest Rooms: Each guest room must have a pleasant decor and quality furnishings. Adequate space must be provided for guests to move freely about the room and comfortably store their personal effects. Windows must be equipped with suitable coverings. A lock from inside the room is required. Hosts personal belongings must not be stored in guest rooms. Beds: Good quality, comfortable beds in top condition are a must. Sofa beds or cots cannot be used as primary beds in a guest room. Bedding must include mattress pad, top and bottom sheet, pillow, pillow case and adequate coverings, all of which must be in top condition and free from soil. Linens must be changed after departure of each guest. Furnishings: Furnishings must include a chair, a nightstand or shelf conveniently located next to each bed, storage for clothing and a waste basket. Good illumination is required. Bathroom: There must be an adequate number of bathrooms. In the case of shared bathrooms, no more than two bedrooms may share one bathroom. Floors, walls and fixtures must be kept to a high standard of cleanliness. Ample amounts of hot water must be available at all times. Good illumination is essential. Shared or private bathroom doors must have an inside lock or latch. Each guest must be supplied with at least one large bath towel, hand towel and washcloth. A waste basket, toilet paper, tissues, a water glass or paper cup and individually wrapped soap or a container of liquid soap must also be available. Each bathroom must be equipped with the following fixtures of high quality and standard size: sink toilet

26 24 tub, shower or both, with non-skid device well illuminated mirror convenient electrical outlet (ground-fault as per code) adequate space for guest toiletries fixtures for hanging towels and bath robe Guest bathrooms may not be shared with hosts. Common Room: A common room (parlour, lounge or similar, either for dedicated guest use or shared with hosts) must be available to guests. Breakfast: The kitchen/breakfast area must be kept clean, well maintained and comply with high standards of sanitation and hygiene (according to local Health Unit standards). Food quality, preparation and presentation must be at a consistent high quality level. A full or continental breakfast must be offered for each day of a guest's stay and be included in the room rate. The type of breakfast must be established when reservations are placed. Unless by prior agreement, breakfast will be prepared for the guest(s). Continental Breakfast: A minimum breakfast to consist of hot beverage, cereal/bread/pastry and juice. Full Breakfast: A complete breakfast to include all of the above plus a hot entree (i.e. eggs, pancakes etc.) General: All guest rooms available for Bed & Breakfast use must meet all specific FOBBA requirements for guest rooms and must be available consistently for B&B guests and not for general boarders or members of the family. Un-hosted facilities or those for permanent boarders are not considered bed and breakfast accommodation and are not eligible for membership in FOBBA. Bed & Breakfasts are considered private, principal residences, and hosts must live at the premise. Owner/operators must permit periodic inspections by FOBBA representatives. Membership will not be extended to establishments that refuse to be inspected. Guest Policy: Members of FOBBA are expected to welcome all guests without discrimination. Individual policies such as adult-oriented or pet-free are acceptable. Rates: FOBBA will not list any B&B which refuses to declare accurate rates. Rates and taxes must be made known to guests at the time of reservation. Deposits and Cancellation: Deposit and cancellation policies must be made known to guests at the time of reservation. Deposits and cancellation policies must be reasonable. Establishments that do not a have a cancellation policy will not be eligible for listings in media produced or maintained by FOBBA.

27 25 Guest Services: Owner/operators or staff must be available on the premises. They must be courteous, present a good appearance and operate on an ethical, business-like basis while providing conscientious attention to guest service. Insurance: B&Bs must carry insurance to cover their premises and business, and public liability consistent with accepted business practices (minimum coverage - $2 million). Note that regular home ownership insurance does not cover B&B guests! Specific policy provisions must be included so verify with your insurer. Guest Security: All reasonable precautions must be employed to secure the personal safety of guests and the protection of their possessions from damage and/or theft. Complaints: Complaints from guests must be handled quickly and in the spirit of cooperation. If the complaint cannot be dealt with satisfactorily the guest must be given contact information for the FOBBA complaints committee. Lack of cooperation with FOBBA in resolving complaints will be cause for membership disqualification. Cancellation of Membership and Refund Policy: Should an applicant decide not to proceed with FOBBA membership prior to completion of the inspection, FOBBA will refund 50% of the membership fee paid at time of application. Refunds or credits do not apply for members of FOBBA who close their operations or otherwise withdraw or are asked to withdraw from the organization during a membership term. FOBBA membership is not transferable. Membership certificates remain the property of FOBBA and must be returned on request, or upon the sale or close of the business. Certificates and Use of Logos: Each member shall promptly be informed by a Director of their admission as a member and shall receive a certificate stating that the holder is a member of the corporation. Certificates remain the property of the corporation, and shall be required to be returned to the corporation upon member resignation, non-renewal, disqualification, sale or closure of the business. Membership in the corporation is not transferable and may not be assigned by the owner/operator of the member property to any new owner. Logos, whether digital or print, will be supplied to members for marketing use. Specialized logos may also be offered to Introductory Members or Member Associations at the discretion of the Board.

28 Appendix B - FOBBA Level 1 Inspection Form 26

29 27

30 Appendix C - FOBBA Level 2 (star-rating) Inspection Form 28

31 29

32 30

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34 32

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36 34

37 35

38 36 APPENDIX D FOBBA 2015 INDUSTRY SURVEY

39 37 Federation of Ontario Bed & Breakfast Accommodation Hospitality Lives Here Ontario Bed & Breakfast Industry Survey 2015 Summary of Results March 2015

40 38 Executive Summary Ontario s first-ever Bed & Breakfast Industry Survey was concluded in the first week of January, 2015, and is a joint initiative between the Federation of Ontario Bed & Breakfast Accommodation (FOBBA) and BBCanada.com. The purpose of the survey was to better understand the profile of B&Bs operating in Ontario, their unique features, guest experiences, marketing practices and the key issues they face. A link to the 38 question survey was sent to approximately 2,000 Ontario-based B&Bs as registered in the BBCanada.com database. Results were compiled and reported by The Resource Management Consulting Group, and analyzed by FOBBA. There were 409 responses from across the province (20% response rate), with all RTOs represented. Key findings are summarized below. B&B Profile 2/3 have operated for less than 10 years Operate as a spousal partnership in 70% of the cases 90% have 4 or fewer rooms 50% are located in the countryside, 90% outside of a larger community 90% of operators live on the premises 70% have less than $30,000 in revenue, 25% have less than $10,000 in revenue 25% are planning on retiring from the business within the next 2-3 years Guest Experience Guests come in all ages, but the range most prevalent High proportion (20%+) of returning guests Prefer B&Bs over other types of accommodations; more personalized / friendly Location, setting and absence of other accommodation in the destination also cited as factors in selecting a B&B Highlights of guest experiences included breakfast, guest conversations, features of the setting or house and amenities B&B stay is generally tied to something else in the area whether it be a recreational pursuit, family event or theatre festival (among others) Federation of Ontario Bed & Breakfast Accommodation

41 39 Executive Summary Marketing 75% use some form of online booking service Print advertising is less important but still used for rack cards and in targeted publications (e.g. local directories of event promotions) 72% have their own website Approximately 50% use social media (Facebook or Twitter), but many are looking for more training Only 30% package their B&Bs with other local tourism products or promotions 75% felt that the most valuable form of marketing was online (listings, booking services, websites, social media, etc.) Issues A variety of issues were raised including: Increasing regulation (e.g. municipal, fire, zoning, taxes) Accessibility legislation Regulatory reaction to AirBnB Increasing costs (taxes, booking fees) Technology changes & social media Changing guest expectations Federation of Ontario Bed & Breakfast Accommodation

42 40 How many years have you been operating your current B&B business? Answered: 406 Skipped: 3 Approximately 2/3rds of respondents have been operating for 10 years or less. Only 8% have operated for more than 20 years. Federation of Ontario Bed & Breakfast Accommodation

43 41 How many bedrooms in total are rented at your B&B? Answered: 405 Skipped: 4 Approximately 2/3rd s of B&Bs operate with 2 or 3 bedrooms and 90% operate with 4 rooms or fewer. Room limits are reflected in many of the municipal bylaws in Ontario. Those with more bedrooms either operate where no bylaws exist or they conform with regulations applicable to hotels and inns. This result is a very different profile to the standard B&B in the US which may offer rooms. This response does raise the question as to what should be allowed in Ontario. Do current bylaws prevent the emergence of larger B&Bs or inns? Should standardized municipal bylaws be pursued? Federation of Ontario Bed & Breakfast Accommodation

44 42 Which of the following best describes the setting of your B&B? Answered: 403 Skipped: 6 It may be surprising that half of B&Bs are located in the countryside, outside of a community. Fewer than 10% are located in large communities. The reason for this result comes through in the responses to later questions about why people stay at B&Bs. Guests value the rural setting as a getaway/vacation destination, and other accommodation options (hotels/ motels) may not be readily available. Federation of Ontario Bed & Breakfast Accommodation

45 43 In which RTO is your B&B located? Answered: 409 Skipped: 0 Several years ago, the province was divided into 13* tourism regions, with a Regional Tourism Organization (RTO) created for each one. Responses were received from all 13 RTOs. The analysis shows respondents are principally clustered in a few of the RTOs located outside major urban centres. 19% of respondents did not know which RTO they belonged to. However, because they were asked to identify their regional municipality, we were able to associate all respondents with their correct RTO. * Region 13 (Northern Ontario) is divided into 3 separate subregions, a, b and c. Federation of Ontario Bed & Breakfast Accommodation

46 44 Is your B&B open year round? If not, please indicate months of operation. Answered: 406 Skipped: 3 About 85% of B&Bs responding operate year-round. 10% operate only during the peak summer months and early fall. The remainder (5%) are closed in the winter months. Although most B&Bs remain open yearround, they are also likely to have a peak season, which could be winter. The results indicate that B&B rooms are available year-round, and that there is likely some capacity to fill. From a marketing or packaging perspective, this represents an opportunity. Federation of Ontario Bed & Breakfast Accommodation

47 45 What percentage of your guests fall into the following age ranges? Answered: 382 Skipped: 27 While B&Bs see guests of all ages, respondents reported the following ranges: Age Bracket % of Guests in the Bracket % of Responses Under % 91% 30s 0 20% 75% 40s 10 30% 71% 50s 20 40% 60% 60s 0 30% 58% Over % 86% The typical Bed & Breakfast visitor is years old, travels for a variety of reasons and is specifically looking for a B&B experience. There was a high level of agreement that the under 30s and over 70s were not a large part of the market. The 50-something demographic appears to be the single highest frequency visitor. Federation of Ontario Bed & Breakfast Accommodation

48 46 What percentage of your guests are repeat visitors? Answered: 369 Skipped: 37 Responses to this question were quite varied. Approximately 1/3rd of respondents said their percentage of repeat visitors was higher than 30% reflecting the quality and nature of experience that the guest received. The mean average for repeat visitors among survey respondents is 28%. The median average is 20%. % Repeat Visitors % of Respondents 0 10% 34% 10 30% 34% 30 50% 20% 50 70% 5% over 70% 7% Federation of Ontario Bed & Breakfast Accommodation

49 47 Please provide an estimate of what percentage of your guests come from the following within Ontario and outside of Ontario Answered: 390 Skipped: 19 Not surprisingly, over 55% of respondents indicated that more than half their guests were from Ontario. Guests from the rest of Canada make up 10 30% of guests for 61% of B&Bs. Guests from outside Canada range from 0 20% for 65% of respondents (USA), and 75% (Europe). Another ways to say this: 75% report that guests from Europe make up 20% or less of their business 65% report that guests from the USA make up 20% or less of their business 87% report that guests from the rest of Canada make up 30% or less of their business Federation of Ontario Bed & Breakfast Accommodation

50 48 From which of the following international countries do you host the most guests? Answered: 383 Skipped: 26 Virtually all B&Bs have hosted international guests. The most frequently mentioned locations were the US, UK and Europe. Many other countries were also mentioned in the other category. What are you doing to attract international guests? Federation of Ontario Bed & Breakfast Accommodation

51 49 Which of the following reasons do guests most often give when asked why they stay at a B&B rather than a hotel/motel? Answered: 386 Skipped: 23 Questions 10 and 11 explored the whole B&B experience. Why do guest stay at B&Bs and what makes the experience memorable? Multiple answers were possible with More personalized/ friendly coming out on top. The most common other themes found in the reasons for staying at a B&B other than at a hotel or motel were: Location (close to family, rural setting, lake setting, theatre festivals, wineries, etc.). Something in the area is attracting the guest. B&Bs need to align their marketing around the reason guests visit the area. Meeting other guests, breakfast conversations. Another example of the atmosphere found at a B&B. Cleanliness. Standards are essential for the B&B industry and can easily be harmed by poor operators. Trip Advisor ratings. Guests do research; they come with an expectation based on your public profile, whether Trip Advisor, FOBBA rating or you website. Limited alternate accommodation in the area. This is one of the reasons that B&Bs flourish outside urban centres. Things to do. Similar to location, people are attracted to your area for a reason. This fact should influence your marketing decisions. The cost of a room does not appear to be a significant consideration in the decision to stay at a B&B over a hotel. Other factors are more important. We cannot conclude from this whether guests perceive B&B rooms as more or less expensive than hotels. Federation of Ontario Bed & Breakfast Accommodation

52 50 Which key feature of your B&B makes it a memorable experience for your guests? Answered: 377 Skipped: 29 This question about the B&B experience was very open-ended with no suggested responses. Many of the answers provide in #10 also appeared in the responses to #11. However, focussing on the experience, the most common responses included: Location/ setting Personalized, friendly hosts, overall experience Amenities (architectural / historic features, pool, spa, hiking trails, lakefront, etc) Breakfast and conversations Guests are clearly looking for something memorable and have high expectations around quality, friendliness and unique features. The importance of the breakfast cannot be understated. The image of the B&B industry depends on all operators adhering to these high expectations. Operators should also partner with others in their area to deliver the unique experiences important to so many guests. Federation of Ontario Bed & Breakfast Accommodation

53 51 Which of the following on-line booking services did you use this year? Answered: 381 Skipped: 28 The responses show that 75% of B&Bs use some form of online booking services. Somewhat surprisingly, 25% report using no online booking system at all. Many guests today prefer to book online, but may follow it up with a phone conversation to plan their visit. Without any form of on-line booking, potential guests may go elsewhere. BBCanada.com has the highest reported use of a booking service. An equal percentage use a system customized to their website, Booking.com, or Other (25%). One quarter of respondents consider Trip Adviser to be a booking system, even though it is technically not, while 13% make use of AirBnB. Results show that respondents use more than one booking system. On average, hosts use two booking services for their property. Federation of Ontario Bed & Breakfast Accommodation

54 52 Which of the following methods of print advertising did you use this year? Answered: 377 Skipped: 32 Although 61% of respondents produce a hard copy brochure or rack card, the trend away from print advertising is evident in the responses. B&Bs report using print advertising developed by local tourism or B&B associations. The objective is to associate your B&B with something connected to the reason guests are visiting your area. Numerous examples of media were reported including: Visitor guides/ maps Local event brochures (festivals, bike tours, guidebooks, etc) Chambers of Commerce tourism publications Local or regional magazines Print advertising opportunities for B&Bs are seemingly endless, but they can be expensive and may not result in new guests. Limited, targeted print advertising seems to be the favoured approach. One out of 5 respondents (21%) use no print advertising whatsoever. Federation of Ontario Bed & Breakfast Accommodation

55 53 Do you have specific dedicated website for your B&B? Answered: 378 Skipped: 31 72% of respondents have a website; 28% do not. Your website is your opportunity to tell your story and market yourself to guests. Without this opportunity, your web presence is limited to online listings or booking services (where the absence of a link to your own website may cost you potential guests). The issue for small businesses is balancing the cost and technological challenges of a website with the benefits it provides. Federation of Ontario Bed & Breakfast Accommodation

56 54 What form of social media do you currently use to promote your B&B? Answered: 373 Skipped: 36 Social media is used by approximately half of the respondents. The primary platform is Facebook with lesser usage of Twitter. Many B&B operators are intrigued by the prospects of social media as it does connect to potential guests and the costs are quite low (mainly time). The survey indicated a high level of interest among respondents in learning more about social media. Federation of Ontario Bed & Breakfast Accommodation

57 55 Q16 Which groups do you work with from a marketing perspective? Answered: 375 Skipped: 34 As expected many of the respondents work with local B&B associations and tourism groups to market their B&Bs. Surprisingly, almost 22% indicate that they work with no one. The other comments highlighted a number of specialized groups that really focus on the experience that B&B guests are seeking. These include biking & hiking groups, ski clubs, golf courses, wineries, theatre festival, music festivals, etc. RTOs appear not to be a major factor in B&B marketing, with only 20% reporting a relationship with their RTO. Federation of Ontario Bed & Breakfast Accommodation

58 56 Of the following local tourism offerings, which one(s) do you package (combined rate or discount) with your B&B? Answered: 370 Skipped: 39 This question focussed on how many B&B try to package their accommodation with other events or tourism offerings available in their area. Almost 70% package with no one. This is one of the single most surprising answers provided in the survey. Packaging is an opportunity to associate the B&B with one of the reasons the guest is visiting the destination and therefore represents true experiential marketing. Better still, costs may be minimal. Opportunities exist here for the B&B industry. In addition to the suggested answers, other packaging partners included wine tours, spa/ massage, sports operators (golf, skiing, yoga, tours) and cultural organizations (theatres, museums, art galleries). Federation of Ontario Bed & Breakfast Accommodation

59 57 Of all the different ways to promote and advertise, please comment on which one(s) generates the most business for your B&B? Answered: 362 Skipped: 44 This was an open-ended question seeking the one form of advertising that generates the most business for the B&B. The overwhelming answer (75%) was online advertising and marketing. Many different forms were mentioned including websites, listing/booking sites, Google and Trip Advisor. Very few mentioned social media but this may because B&B operators are still experimenting with it, and may not understand it. 20% answered word of mouth. This is the old-fashioned version of Trip Advisor, but it generates results that multiply. A positive guest experience and asking guests to refer your B&B to friends delivers results. Federation of Ontario Bed & Breakfast Accommodation

60 58 Approximately, how much do you spend yearly on marketing? Answered: 378 Skipped: 31 As small businesses, B&Bs have limited marketing budgets. Approximately 2/3rds spend less than $1,000 annually. To control costs, marketing has to be creative and targeted to the right audience. Many forms of marketing (e.g. packaging a promotion with local tour operator) can be very inexpensive. Perhaps noteworthy is that 37% spend less than $500, which can easily be used up with a single membership and a small hosted website. It is not clear from the question or from responses what people consider to be marketing. For example, are respondents including commission fees paid to booking services such as booking.com? This question merits further investigation. Federation of Ontario Bed & Breakfast Accommodation

61 59 Which of the following organizations inspect and rate your B&B? Answered: 382 Skipped: 27 Responses to previous questions clearly demonstrate that guests are looking for a high quality B&B experience and aren t afraid to talk about it on Trip Advisor or social media. While inspection does not necessarily guarantee high quality, it offers an assurance of it. Fewer than half of responding B&Bs report they are inspected or rated. Almost 23% of respondents misperceive Trip Adviser as an inspection and rating agency. Others cite inspections by AirBnB, BBCanada, Booking.com, Expedia as well as their local municipalities. There appears to be a tremendous gap in perception about what constitutes a rating/inspection and what is a booking engine, marketing website or referral system. A concern for the industry is that a lack of standards, ratings and inspections may put at risk the perception and reputation of the industry, or lead to the type of government regulation on short-term accommodation now being seen throughout parts of North America. Federation of Ontario Bed & Breakfast Accommodation

62 60 From your perspective, what is the most important issue facing the B&B industry today and into the future? Answered: 350 Skipped: 59 This question was meant to solicit views about issues relevant to the B&B industry. Answers were varied, but included the following: Government oversight, regulation (e.g. fire, health, short-term accommodation) Increasing guest expectations Poor hosts / bad experiences Aging population Rising costs (online booking fees, insurance, taxes, credit card fees) Effective marketing Air BnB Technology changes / social media While some of these comments reflect changing times, others are issues that could be addressed by an industry association such as FOBBA. In particular, the industry needs to make itself heard when impacted by regulations or threatened by low operating standards. Federation of Ontario Bed & Breakfast Accommodation

63 61 How concerned are you about keeping up with the regulations affecting your B&B? Answered: 343 Skipped: 66 The areas of higher regulatory concern included fire code issues and property tax assessment. At the last FOBBA conference, a representative from the Ontario Fire Marshall s office provide an overview of the regulations and explained why it may appear the rules are being applied unevenly across the province. In many cases, fire code and municipal bylaw issues may conflict and take time to resolve. With respect to property tax assessment, some B&Bs have reported assessments being made on the value of the B&B as a business instead of as a residential dwelling. Municipal bylaws vary across the province and some areas are taking action in response to problems created by short-term accommodation. This could threaten B&Bs. A dramatic example in the US were the actions taken in New York and Los Angeles that shut down or limit B&B operations in response to concerns about Air BnB. FOBBA continues to discuss local licensing, inspection and zoning issues with Ontario municipalities. Of least concern to respondents are small drinking water systems (which affect only well owners and is an issue that has largely been resolved since O.Reg 170/03), and HST. Federation of Ontario Bed & Breakfast Accommodation

64 62 Please indicate your interest level in the following educational topics to help improve your B&B. Answered: 342 Skipped: 67 Internet related-marketing was the top topic listed for further education. A close second was Social Media. A social media session was offered at the last FOBBA conference and more are planned. Other business related topics, such as tax matters, record keeping, HST and insurance are also of interest. Not surprisingly, of least interest as educational opportunities are How to Operate a B&B, and Housekeeping, probably because most B&B owners could give their own courses on these topics. Federation of Ontario Bed & Breakfast Accommodation

65 63 How interested would you be in an online seminar (webinar) on any of the education topics listed above? Answered: 347 Skipped: 62 Web-based learning via webinars is becoming increasingly popular, minimizing costs and travel time. Just over 30% of respondents were very interested in this form of learning, while 75% were very or somewhat interested. 24% were not at all interested. Federation of Ontario Bed & Breakfast Accommodation

66 64 Are you a current member of the Federation of Ontario Bed & Breakfast Accommodation (FOBBA)? Answered: 350 Skipped: 59 FOBBA currently has about 100 full members and would like to increase membership in order to better represent the industry. FOBBA members adhere to a set of operating standards and are both inspected and rated. This year, in 2015, FOBBA is updating its strategic plan to clarify its role and focus on matters most relevant to B&B operators. The answers provide to this question provide some insight into what operators may want from an association. The reasons for not joining are varied. Some are concerned about costs, even though annual membership is just $150. Others appear to be looking for a direct financial benefit. Belong to an Association that is a FOBBA member FOBBA is an industry association, not a booking service, although we are partnering with Ontario stakeholders on new marketing initiatives. FOBBA s principal role has been to represent the industry and uphold standards. Indicate reason for not renewing Federation of Ontario Bed & Breakfast Accommodation

67 65 Have you attended FOBBA conferences and were they useful? Answered: 347 Skipped: 62 While a minority of respondents have attended a FOBBA conference, those who did have found it useful. Annual conferences have been the primary means for B&B operators to share experiences/ issues, and participate in education sessions. Useful Not useful Conferences coincide with FOBBA s Annual General Meeting Federation of Ontario Bed & Breakfast Accommodation

68 66 In which of the following areas could FOBBA add value to your business or assist you as the operator? Answered: 301 Skipped: 108 FOBBA is a professional B&B industry association and does not compete with organizations (such as BBCanada.com) which directly market B&B accommodation. FOBBA does have an indirect marketing role through its inspection and ratings systems which are designed to promote member education and protect or inform the public, and through it s industry partners such as Resorts of Ontario. The answers to questions 27 & 28 provide some insight into what respondents feel FOBBA should be doing as an industry association. These will be considered as part of FOBBA s strategic planning update. The lack of staff resources to date has limited the scope of FOBBA s activities in past. Additional resources are being investigated and an announcement will be made not later than the beginning of April, Federation of Ontario Bed & Breakfast Accommodation

69 67 What best describes you as a B&B operator? Answered: 337 Skipped: 72 Almost 70% of Bed & Breakfasts are run as a spousal partnership. Women are the primary operator in 65% of cases. (29% of principal operators are men.) Almost 30% are single operators. The average ages of B&B operators are in the range. 2/3rds of primary female operators are between 55 and 64 years of age. Ages and genders of secondary operators correspond to this data. (eg. 30% of secondary male operators are between 55 and 64 years of age.) Federation of Ontario Bed & Breakfast Accommodation

70 68 As the operator of the B&B, do you live in the B&B? Answered: 338 Skipped: 71 Over 90% of B&B operators live at the B&B premises. This is a requirement of FOBBA membership and is also part of many municipal bylaws. Operators who life offsite are more common in the USA where B&Bs tend to be larger business operations, more akin to country inns. Federation of Ontario Bed & Breakfast Accommodation

71 69 Thinking about the next 2 years, do you expect your B&B business to: Answered: 341 Skipped: 68 Almost 60% of B&B operators expect their business to increase over the next few years. Only 3% expect a decline. This response is clearly optimistic about the future, and may or may not align with the tourism industry overall. The belief, however, is supported by the number of people within and reaching the predominant B&B visitor demographic. Sustained visitor growth will require investment, online marketing, creative local partnerships and experiential marketing. Federation of Ontario Bed & Breakfast Accommodation

72 70 Thinking about the future (2-3 years), do you currently have plans to cease operating the B&B? Answered: 335 Skipped: 74 Approximately 25% of B&B operators are thinking about retirement. B&B closures have recently reduced the number of long-term FOBBA members. Nevertheless, there are many new operators with approximately 2,000 B&Bs operating in Ontario. Federation of Ontario Bed & Breakfast Accommodation

73 71 Which of the following ranges best describes your annual gross B&B revenue? Answered: 316 Skipped: 93 The range in revenues provides a clear picture of the size of B&B operations in Ontario. They are very small, home-based businesses with 70% operating below the $30,000 threshold for registering to collect HST. The Mean Average gross income of respondents is between $20,000 and $25,000 per year. The Median gross annual income of respondents is between $15,000 and $20,000 per year. This coincides with the generally small number of rooms in most properties, and reported seasonality. This suggests B&Bs are not principal sources of income; rather they are ancillary to other income sources, whether from retirement or other, and are often a lifestyle choice. The nature B&Bs as small businesses is both a strength and a challenge. Its strength is delivering the personalized experience sought by so many guests. It also opens up a variety of interesting homes to tourists in locations where larger commercial accommodations may not be available. Weaknesses or challenges come from the limited budgets to market or expand the business. Maintaining standards and properties may also be a challenge for some in the face of rising operating costs. Isolation is also a risk. Small B&Bs should seek support from their peers through local B&B associations and FOBBA. Federation of Ontario Bed & Breakfast Accommodation

74 72 Are you registered to collect HST? Answered: 332 Skipped: 77 Just under half of respondents are registered to collect HST. This somewhat aligns with the revenue response in the prior question. Even B&Bs operating below the $30,000 revenue threshold may choose to register in order to recover input tax credits on their purchases, and it appears some have chosen to do so. Federation of Ontario Bed & Breakfast Accommodation

75 73 Do you have an Ontario business license? Answered: 330 Skipped: 79 Approximately 23% of B&Bs operate without an Ontario business licence. The on-line registration process is simple and the one-time (every 5 years) cost is low. A Master Business License is required by the province of Ontario unless a B&B is incorporated, or operates in the owners personal name. Learn more at Federation of Ontario Bed & Breakfast Accommodation

76 74 Do you have commercial liability insurance? Answered: 332 Skipped: 77 Over 90% of B&Bs carry commercial liability insurance. While no one likes to pay insurance premiums, it is too risky to operate a business offering services to the public without insurance. FOBBA has arranged a specialized B&B insurance package for B&Bs through Halpenney Insurance Brokers that operators without insurance may wish to investigate. Federation of Ontario Bed & Breakfast Accommodation

77 74 Appendix E Regulatory Regime in Niagara-on-the-Lake Bed and Breakfasts have existed for decades in Niagara on the Lake and are a valued resource of the tourism industry. They work with local businesses to enhance the customer experience and promote tourism. As a result, we feel that there is room for the co existence of Bed and Breakfasts/ Country Inns and their commercial counterparts (i.e. Hotels, motels, cottage rentals etc.). Definitions: Definitions play an important part in defining who falls into what category by making it definite, distinct and clear. While Bed and Breakfasts have been around for decades in Ontario, they now fall into the category of home sharing due to the fact they generally operate in a residential zoning and the Bed and Breakfast must be the owner s principal residence. The following definitions are part of Niagara on the Lake By Law no and are important to this issue as they represent the residential zoning and home Sharing category: Bed and Breakfast Establishment is defined as a single detached dwelling with no more than three (3) guest bedrooms for overnight guest lodging, where only breakfast is included, for the temporary accommodation of the traveling or vacationing public and includes the living accommodation of the residents of the dwelling. Such establishment shall be licensed by the Town of Niagara on the Lake and shall not include a restaurant, hotel, motel, boarding or rooming house, nursing home, or any home licensed approved or supervised under any general or special act. The principle use of the dwelling unit shall be for residential purposes and the bed and breakfast establishment shall be for ancillary use to the main residential use. Guest bedrooms shall not be suites. Country Inn means a residential use which is the principle residence of the owner/operator and host having more than three rented rooms providing lodging and only breakfast to overnight guests. Country Inns located in the agricultural zone district are restricted to a maximum of six (6) rented rooms. (A Country Inn shall only be permitted by way of a site specific zoning by law amendment and shall be subject to the same licensing requirements as Bed and Breakfast Establishments). Regulations Niagara on the Lake Bed and Breakfasts and Country Inns (which fall under the term home sharing ) are regulated by The Town of Niagara on the Lake under the Short Term Rental By Law As part of the licensing process, owners are required to ensure compliance with the following: a. Provisions of By Law ; b. Ontario Fire Code; c. Ontario Building Code; d. Property Standards By Law; e. Zoning By Laws;

78 75 f. Any other Town By Laws that may affect the status of an application. In addition to these requirements, owners are required to provide guests with outdoor amenity space to relax in, ample parking for the number of guests/ owners vehicles and liability insurance for short term rentals for a minimum of Two Million Dollars ($2,000,000.00). The Corporation of the Town of Niagara on the Lake must be listed on the insurance policy as an additional insured. These regulations help to ensure that the Town of Niagara on the Lake is able to maintain their vision for the town, provide fair playing field with commercial accommodations and enhance the customer experience with options to better suit traveler s individual needs. Taxation This is a key area that truly defines the difference between The Sharing Economy, and the Underground Sharing economy. Many of the Bed and Breakfasts operating in the Province of Ontario are operating their Bed and Breakfast as a business and as such have acquired a master business License and if applicable, a GST/HST registration number. These documents assist the government in tracking the Bed and Breakfasts business activity and ensure the applicable taxes are collected as it does for any other businesses operating in the Province. The sector of the Home sharing Economy that do not have their Master Business License and do not disclose their business activities on their taxes, are fuelling the Underground Sharing Economy and do not conform to working in a fair market with other businesses by tax evasion. Summary In today s busy world, there is room for the co existence of Bed and Breakfasts/ Country Inns and their commercial counterparts. Today s traveller has many options to choose from for accommodations that suit their individual needs. These choices can be Hotels, Motels, Inns, Bed and Breakfasts, Villas, Cottage or house rentals to name a few. Each choice has a different guest experience, however whether traveling for business or leisure, there is an accommodation choice to suit your needs and budget. Some key questions that arise when looking at the Home sharing Economy are: a. Is the business operating with a Master Business License and remitting taxes on business activity? b. Does the business conform to local By Laws? c. Does the Business help the Community and Province by promoting tourism? d. Is it unfairly competing with other businesses? e. Does it provide a positive guest experience? Additionally, when looking at ways to regulate the Home sharing economy, we would like to bring to your attention to areas such as Niagara on the Lake who already have a successful municipal framework in place. Having a common framework across the Province would ensure a fair playing field and set a standard for Home sharing accommodations.

79 76 SHORT TERM RENTALS (Bed and Breakfast Establishment, Cottage Rental, Country Inn, Vacation Apartment, Villa) LICENCING BY-LAW GUIDELINES 1593 FOUR MILE CREEK ROAD P.O. BOX 100 VIRGIL, ONTARIO L0S 1T0 P: F: All Short Term Rentals in the Town of Niagara-on-the-Lake must be licenced in order to operate. This package contains the following: Short Term Rental Application Form Sample Certificate of Insurance Pre-Inspection Checklist Sample Site Plan and Floor Plans Licencing By-law No Zoning By-law No. 4316AI-13 Official Plan By-law No PROCEDURE It should be noted that only complete applications will be accepted. 1. All applicants must complete the application form in full and return it to the Town Administration Office with the following: (a) (b) (c) PAYMENT Payment to The Corporation of the Town of Niagara-on-the-Lake (Fees are outlined in Schedule A of By-law ). SITE PLAN A clear and legible site plan of the property, drawn to scale, which includes: The exact location of the building with setbacks indicated from all property lines; and, The location and dimensions (in feet or metres) of the designated parking area with the required parking spaces clearly identified; and, The location and dimensions (in feet or metres) of the outdoor amenity space. FLOOR PLAN A floor plan, drawn to scale, for each floor of the building is required. This plan will clearly outline all exits and identify all bedrooms including guest bedrooms as well as private bedrooms. All other rooms shall be clearly labelled as to their use. For renewal applicants only: Please note that existing site plan(s) and floor plan(s) on file for your property, providing that they are still accurate, are sufficient for the purpose of your renewal application. Should you wish to make amendments, please include revised plans with your application.

80 77 (d) CERTIFICATE OF INSURANCE A certificate of insurance, from an insurance provider, is required and must clearly outline the following (see attached sample for further clarification): Policy number Policy expiration date The type of Short Term Rental (ie. Bed and Breakfast, Cottage Rental etc.) The property address of the Short Term Rental Full name of the insured A minimum of $2,000,000 coverage The Corporation of the Town of Niagara-on-the-Lake listed as an additional insured A signature from an insurance representative For renewal applicants only: Please note that the existing certificate of insurance on file for your property, providing that it is still in effect, is sufficient for the purpose of your renewal application. A copy of a valid certificate of insurance may be required should the certificate on file be expired. Please be advised that renewed certificates are to be sent to the Clerk s Department prior to the expiration date. Furthermore, notice is to be given upon cancellation. (e) LEASED PROPERTIES If the property is leased, a signed statement from the property owner must be attached to the application. The owner shall: 1.) Advise of his/her permission for the property to be licenced 2.) Ensure that the applicant is in a lease agreement that does not expire prior to the end of the licensing period 2. Upon receipt of a complete application and payment of the applicable fee, the Clerk s Department will forward the application to: By-law Enforcement Fire and Emergency Services (new applications only) Building Services for an internal review of the status of zoning and building permits (Applicants will be contacted if a building inspection is required). The Finance Department for an internal review of the status of municipal tax, water and hydro accounts (Applicants will be contacted should accounts be outstanding). Note: The Niagara Regional Public Health Department will only inspect and approve properties that contain five or more bedrooms (Country Inns only), operate a swimming pool or, are on a private water system. Town staff will forward the applicable documentation to the Niagara Regional Public Health Department on the applicant s behalf. Once notified, the Niagara Regional Public Health Department will contact the applicant to book an inspection, if required. 3. Once the licence has been issued, signs may be obtained from the Town s Customer Service Desk Bed and Breakfast Sign $28 refundable deposit Vacancy Sign $17 non refundable No Vacancy Sign $17 non refundable

81 78 THE CORPORATION OF THE TOWN OF NIAGARA-ON-THE-LAKE APPLICATION TO LICENCE SHORT TERM RENTALS For the licencing period beginning January 2016 NEW Application RENEWAL Application 1593 FOUR MILE CREEK ROAD P.O. BOX 100 VIRGIL, ONTARIO L0S 1T0 P: F: Note: In order to be considered for a renewal application, your operation must have been licenced in the previous licencing period (2015). Preferred Contact FULL NAME(S) OF PROPERTY OWNER(S) Contact # (Please choose only one) FULL NAME(S) OF PROPERTY OPERATOR(S)/MANAGER(S) (Only if applicable) FULL NAME OF LOCAL TOWN CONTACT (Only applicable if property operator(s)/manager(s) live out of Town) Please clearly indicate the license holder s name(s) as it is to appear on the license. PROPERTY ADDRESS HOUSE NAME (If applicable) Street No. Street Town MAILING ADDRESS Street No. Street P.O. Box# / RR# / Apt. # Town/City Province/State Postal/Zip Code Please check off the appropriate box for each of the following: Property is on Municipal Water YES NO Property includes the operation of a Swimming Pool YES NO Please indicate the year that the structure was built Property is Owned YES NO Note: If a property is leased, please include a signed statement from the property owner giving permission for the property to operate as a Short Term Rental For leased properties only: Statement of owner s consent # of Full Time Occupants N/A Please be advised that if the desired Short Term Rental property operates a swimming pool, is on a private water system or is desired to be a Country Inn, this application will be forwarded to the Public Health Department for approval.

82 79 Please check off the type of Short Term Rental that you are applying for PAYMENT OPTIONS: FEES: $ PER LICENCED GUEST ROOM PER YEAR Short Term Rental Type Permitted # of Bedrooms Total # of Bedrooms within the Structure Desired # of Bedrooms to be Licenced Site Specific Zoning By-law # *Only applicable for NEW applications* Bed and Breakfast 1-3 N/A Cottage Rental 1-3 N/A Vacation Apartment 1-3 N/A Country Inn 4+ Villa 4+ *Please refer to the attached by-laws for further guidelines and restrictions.* One-time payment Payment submitted with this application will cover the entire four (4) year licencing period ($ x # of licenced bedrooms x 4 = TOTAL) Please note that all applicants will be entering into a four (4) year licencing period. Annual payment Payment submitted with this application will cover the first year of the four (4) year licencing period. ($ x # of licenced bedrooms x 1 = TOTAL) An invoice will be sent out in October, prior to the next licensing year. THE CHART BELOW IS ONLY APPLICIBLE FOR BED AND BREAKFAST ESTABLISHMENTS AND COUNTRY INNS LIST OF ALL MOTOR VEHICLES USED AND/OR STORED ON SITE BY THE RESIDENTS Please advise the Clerks Department of any changes as they occur. Licence Plate # Colour Make & Model I (we) have read and understand all attached by-laws, requirements and the policy pertaining to the operation of a Short Term Rental, and I do declare that all of the information submitted with this application is true. By signing this form I give my permission for Fire and/or By-law inspectors, and if required, the Public Health Department, to enter the above named residence for the purpose of inspecting for compliance with the regulations. I understand that it will take a minimum of four (4) weeks for this application to be processed. SIGNATURE OF APPLICANT(S) DATE Note: All Short Term Rentals, including property address, owner(s), and the name of the establishment, licensed within the Town of Niagara-on-the-Lake, are posted to the Town s website ( FOR INTERNAL USE ONLY Date of Submission: Date/Time of By-law Inspection: Customer Service Representative s Signature: Amount Paid: $ Cheque Cash Debit Forms included with the Application: Site Plan Floor Plans Statement of owner s consent (only required if property is leased) Certificate of Insurance Other: Forward application to the Niagara Region Public Health Department for approval: YES NO

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84 81 SHORT TERM RENTALS (Bed and Breakfast Establishment, Cottage Rental, Country Inn, Vacation Apartment, Villa) PRE-INSPECTION CHECKLIST The checklist below will help you prepare for your Short Term Rental licencing inspection. This checklist outlines some of the basic requirements that need to be met in order to be licenced under the Town of Niagara-on-the-Lake By-law No , as amended. Please be advised that it is your responsibility to ensure all requirements under the applicable by-laws are met. All Short Term Rentals must meet all By-law requirements prior to receiving a license including but not limited to: Property Standards, Clean Yards, Fences, and Pool Bylaws. Pre-inspection Checklist ALL ROOMS FOR HIRE: Walls and ceilings are reasonably smooth and free from defects and holes that would reduce their effectiveness in a fire situation. Floor surfaces are reasonably smooth and do not unnecessarily contribute to a potential accident ex. nails sticking up, floor boards loose, ripples in carpets, etc. Electrical outlets and switches have adequate covers and electrical fixtures or lamps are provided. Operable window present for ventilation/light and equipped with a suitable insect screen. Access door provides privacy and operates freely without the use of a key to exit. ELECTRICAL PANEL: Breakers are operational and the breaker panel is labelled. FIRE SAFETY: All smoke alarms, either battery operated or interconnected, on every floor level and in every bedroom, if applicable, shall be in working order. Carbon monoxide detectors shall be in working order. Electrical cords are in good working condition All escape routes are clear of obstructions and easily accessible. Clothes dryer lint trap and exhaust is clean and lint free. All extension cords are used safely, not under carpets or across walking areas.

85 82 Portable space heaters are a minimum 3 feet away from combustible material. The furnace has been inspected and the filter replaced in the past year. The fire place chimney has been inspected and cleaned in the past year. All portable fire extinguishers with a minimum 2A-10BC rating shall be made available, visibly mounted on each floor area, shall be inspected and tagged annually. Any bedroom door with an automatic door closer must ensure that the door properly closes and latches properly. All exit signs shall be illuminated while the building is occupied with guests. Electrical panels shall be labelled and only be serviced by a licensed electrician. Sprinkler systems shall be inspected annually. Fire alarm systems shall be inspected annually. Establish rules for smokers. If you permit smoking inside, use large, sturdy ashtrays that can t be easily tipped over. Ashtrays should be emptied into a metal container, not the garbage can. If you use candles, keep them away from anything that can burn and place them in a safe, sturdy glass holder. Place them where they cannot be knocked over and blow them out when leaving the room. For clarification please call the Fire Department at ext LICENCING REQUIREMENTS: A copy of the Town approved floor plan with all exits marked on it posted in a conspicuous area. (The plan is not to be posted in a binder or folder). Daily register/guest form is current Rate card posted in a conspicuous place (not in a binder or folder) in each room for hire. MEANS OF EGRESS/EXITS: A safe continuous and unobstructed passage is provided from the interior of the dwelling to the outside at street or grade level is provided. PARKING AREAS: Kept in good repair and free of clutter (including the garage if used for parking) POOL AREAS: Gates are self-closing. Gates have locks. Pool is fenced in. STAIRS, PORCHES AND BALCONIES: All steps, handrails, guards, and landings are in reasonable good repair and will not likely create a hazard (ie. free of holes, cracks and other defects which may constitute an accident hazard). Stair treads or risers are in good condition. Stairwell is clear of clutter and provides for an unobstructed passage. Interior stairs with two or more risers have a handrail. Exterior stairs with three or more risers have a handrail.

86 83 UTILITY AREAS: Area around the furnace is free of clutter, waste combustibles, and flammable liquids. Hot water tank is free of rust and other visible defects. WASHROOMS FOR GUEST USAGE: Is separate from the owner s washroom. A water closet, basin and tub or shower is provided and are reasonably clean and in good condition. Fixtures are reasonably clean, impervious to water and capable of performing their intended function. Floors, walls and ceilings are reasonably smooth and clean (ie. free from mould and mildew). Operable window is provided for ventilation; or, where no window is present an exhaust fan and electrical fixture has been provided.

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