Vacation Rental Units

A Vacation Rental Unit (VRU) is a short-term rental property intended for tourists and visitors (such as those offered through booking applications like Vrbo and Airbnb, etc.).

VRU’s are not permitted to operate in residential areas. It is also deemed an offence to own, operate, or list the property on a VRU booking platform without a license.

In Niagara Falls, VRU’s are only permitted to operate in designated Tourist Commercial (TC), General Commercial (GC) and Central Business (CB) zones (unless the VRU is located in a specifically zoned area to permit use) under By-Law 2018-92. View a map of the permitted VRU areas. For more information regarding the zoning of a specific location or address, please inquire with the City's Planning & Development department at [email protected]. 

Note that Vacation Rental Units are different than Bed & Breakfasts. The City of Niagara Falls has traditionally allowed for Bed and Breakfasts (B&Bs) in residential areas, however these properties differ from a traditional VRU as the owner of the property must live on site and be present when the travelling public is using the property. These units must also be licensed by the City. The City will be updating its bylaw(s) in order to ensure owner occupied VRUs and B&Bs are licensed and regulated effectively.

If your Vacation Rental Unit has three (3) or less bedrooms and is located in a designated Tourist Commercial, General Commercial or Central Business zone, it must be officially registered and licensed with the City.

The initial cost of a VRU license is $500 and renews annually for $250 on April 30^th. Operators must also collect and remit a Municipal Accommodations Tax (MAT).

Under By-Law 2018-104, the Municipal Accommodation Tax is calculated at a rate of $2.00 per night of occupancy of transient accommodation in accordance with Part XII.1 of the Municipal Act, 2001, S.O. 2001 c.25, as amended, and the Municipal Accommodation Tax Regulation O.Reg. 435/17, effective January 1, 2019. More information on the MAT can be found on the Municipal Accommodation Tax page.

Apply for a license

To fill out a VRU license application form, complete a Vacation Rental Unit (VRU) application form.

Required application documentation includes:

• Government issued ID
• Transfer/deed of the property
• Proof of commercial insurance
• Site plan
• Floor plan
• Parking management plan
• Municipal Accommodation Tax paperwork
• Building inspection if renovations or construction has been done to the property
• Fire inspection

To start the VRU licensing process, please email your completed application to: Debra Jones | Licensing Coordinator | [email protected] | 905-356-7521 ext. 4283

For a list of legal, licensed VRUs currently operating in Niagara Falls, visit the Rental Properties page.

The City of Niagara Falls is committed to making our community a welcoming and inviting place for visitors. However, we remain committed to balancing the needs of visitors with the safety and comfort of residents as it pertains to VRUs.

Enforcement of VRU’s is on a complaint basis only. If you are aware of a VRU operating illegally in your neighbourhood, click here and fill out this form to alert the City of Niagara Falls’ Municipal Law Enforcement team.  

Complaints are also accepted by a Municipal Enforcement Clerk at [email protected] or 905-356-7521 ext. 4253 OR 4341

Owning and operating a VRU in Niagara Falls in an unzoned residential area is strictly prohibited.

A first offence results in a fine of up to $50,000. A second offence, and each subsequent offence, results in a fine of up to $100,000 each time.

It is also illegal to advertise a VRU on a brokerage platform without a license, per By-Law 2021-99.

These fines are contained within By-Law 2021-57.

The City of Niagara Falls has developed a guide for VRU operators, outlining policies, procedures, and responsible business practices for operating a legal VRU. Click here to view the Vacation Rental Unit Handbook.