![Everything you need to know about Owner Occupied Short Term Rentals]()
An Owner Occupied Short Term Rental (OOSTR) is a home occupation in a dwelling unit within or accessory to a Principal Residence that is rented out by the Owner to a single group of the travelling public for a period of 28 consecutive days or less and is licenced by the City of Niagara Falls to carry out a business.
Everything you need to know about owner occupied short-term rentals
Do you have an additional dwelling unit on your property? Property owners are now allowed to rent out a dwelling unit on the same property as their principal residence as a short-term rental. This is permitted as part of a 14-month pilot project allowing for 100 licences with completion at the end of September 2026. Following this, Council will assess the success of the program and determine if it should be continued.
The City of Niagara Falls has created an Owner Occupied Short Term Rental Handbook for operators. It explains the rules, procedures, and best practices for running a legal OOSTR.
Apply for a licence
Before you begin
- Zoning: Confirm your location meets the zoning requirements by checking with the zoning team at [email protected].
Key zoning requirements include:- Being located within one of the following zones: R1A, R1B, R1C, R1D, R1E, R1F, R2, R3, R4 or TRM
- Being located a minimum of 150 metres from an existing OOSTR
- One parking space for up to two bedrooms and one additional space for three bedrooms (in addition to the required parking for the principal dwelling unit)
- The maximum number of bedrooms permitted is three
- The maximum number of guests allowed by the building code is six
- The rental must be within an additional dwelling unit
- Only one OOSTR is permitted per property
- Must be rented to a single group (not separate groups for each bedroom)
- The owner must have their principal residence on the property and be present for the duration of the rental period
- The owner must obtain a licence
- Building Permits: Ensure you have an established Additional Dwelling Unit. For building permit questions, go to the Building Permit Application Process page
- Check the OOSTR Handbook for everything you need to know about OOSTR’s
Application
Ensure your application is complete to help process it quickly.
Required application documentation includes:
- Proof of ownership (Deed or Land Transfer Documents)
- Proof of principal residence (Income Tax Notice of Assessment)
- Building permit number for established Additional Dwelling Unit
- Occupancy permit number
- Government issued ID
- Proof of Insurance for $2,000,000
- Copy of Standard Agreement – Renters Code, Noise By-law
- Certificate from the Electrical Safety Authority
- Site plan, including parking spaces
- Floor plan, including number of beds
- Parking management plan
- Municipal Accommodation Tax paperwork
- Fire inspection
Fees, fines and municipal accommodation tax
Fees
The initial cost of an OOSTR licence is $500, and annual renewal is $250.
Fines and penalties
In accordance with By-law 2021-57 and By-law 2025-033, it is illegal to:
- Own and operate an OOSTR in Niagara Falls without a valid licence
- Own or operate an OOSTR other than in accordance with the term and conditions of a licence, the terms and conditions of By-law 2021-57
- Advertise, promote, broker, or offer for rent an OOSTR without a valid licence
- No person shall, because of race, colour, creed, gender or sexual orientation, discriminate against any member of the public in the carrying on, conducting or operating of an OOSTR
- No person renting an OOSTR shall sublet the accommodation to another person or party, meaning the OOSTR contract is non-transferable
In accordance with By-law 2024-045, fine amounts are $1,000 per day.
Municipal Accommodation Tax (MAT)
OOSTR operators must register, collect and remit the MAT tax.
Visit our Municipal Accommodation Tax page to learn more.
Relevant by-laws
