Vacation Rental Units

Vacation Rental Unit banner graphic

Dreaming of sharing your cozy home with travellers seeking the perfect getaway? Here, we'll walk you through how to license your vacation rental unit. Whether you're a seasoned host or just starting, we've got everything you need to make your rental the ultimate escape for guests.

A Vacation Rental Unit (VRU) is a short-term rental property for tourists and visitors (such as those offered through booking applications like Vrbo and Airbnb, etc.). VRUs are different from Bed and Breakfasts (B&Bs). In a B&B, the owner must live on-site and be present when the vacationers use the property. The owner does not live in a VRU.

The City of Niagara Falls has created a Vacation Rental Unit Handbook for operators. It explains the rules, procedures, and best practices for running a legal VRU. 

Apply for a business licence

Before you begin

  1. Zoning: Confirm your location is zoned for a VRU.
  2. Bedrooms: You can only operate a VRU with a maximum of three bedrooms.
  3. Building Permits: You do not need a building permit if you are not planning any construction.  However, you may need a permit if you plan to renovate or alter the building. Contact Building Services to learn more.
  4. Check the VRU Handbook for everything you need to know about VRUs.

Application

Ensure your application is complete to help process it quickly.

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

Please email your completed application to Debra Jones | Licensing Coordinator | [email protected] | 905-356-7521 ext. 4283

Fees, fines and the municipal accommodation tax

Fees

The initial cost of a VRU license is $500, and it renews annually for $250 on April 30th.

Fines and penalties

It is illegal to:

  • Own and operate a VRU in Niagara Falls in an unzoned residential area
  • Advertise a VRU on a brokerage platform without a license, per By-Law 2021-99.

Fine amounts:

  • First offence: up to $50,000
  • A second offence and each subsequent offence: up to $100,000 each time
  • These fines are contained within By-Law 2021-57.

Municipal Accommodation Tax (MAT)

VRU operators must register, collect and remit the MAT tax.

  • $2.00 flat fee per night of occupancy

Visit our Municipal Accommodation Tax page to learn more.

List of licensed VRUs in Niagara Falls

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

Report an illegal VRU in your neighbourhood

We are committed to making our community a welcoming place for visitors. We must balance visitors' needs with the safety and comfort of residents.

Enforcement of VRUs is only on a complaint basis. There are 3 ways to report an illegal VRU to the Municipal Enforcement team:

  1. Complete the online reporting form.
  2. Email [email protected]
  3. Phone 905-356-7521 ext. 8000

Zoning requirements for operating a VRU

VRUs are not permitted in residential areas but are allowed in the following 3 zones:

  • Tourist Commercial (TC)
  • General Commercial (GC)
  • Central Business (CB)

View a map of permitted locations for Vacation Rental Units

Questions?  Check with the zoning section at [email protected] or call 905-356-7521 ext. 4330.

Relevent bylaws

VRU owners must follow the rules of all applicable bylaws, including: