Tiny Township is a picturesque community located north of Barrie between Lake Huron and Georgian Bay.
Like most picturesque communities, it is struggling to strike a balance between permanent residents, semi-permanent residents, cottage owners, and tourism operators.
In 2022, the Township passed a new bylaw to restrict short-term rentals of less than seven days.
The bylaw limits short-term rental (STR) rentals to no more than 92 combined days per year, sets a minimum rental period of six consecutive days per booking between April 15 and October 15, and restricts the number of people allowed to sleep in a rental.
Going forward, the municipality is capping the number of STRs at 300.
Annual inspections are required as part of the licensing requirements, among the regulations.
The Legal Challenge
The Tiny Township Association of Responsible STR Owners challenged the bylaw, arguing that the Township “implemented a regime that is extremely restrictive and overly harsh. In my view, the regulations are designed to effectively regulate STRs out of existence. They represent a severe impact on our member’s property rights that prevent them from making use of their properties as STRs.”
They argued the regulations were ‘in effect a zoning by-law which can only be done through the Planning Act,’ saying the cap of 300 STRs went beyond licensing powers of the Municipal Act.
The bylaw does not regulate where STRs can operate. Therefore, it is not a zoning bylaw, the Court ruled.
The Decision
Municipal bylaws can only be quashed for “illegality.” Municipal bylaws benefit from a presumption of validity as the legal standard of review.
Superior Court Justice Howard Leibovich ruled the bylaw is not an “illegally disguised zoning by-law” that is tied to municipal powers to create bylaws “respecting the health, safety and well-being of persons” and to license businesses to achieve these goals.
“The role of the court is not to second guess the policy decisions made by the Township,” Justice Leibovich writes. “The role of the court is to determine whether the by-laws are rationally connected to legitimate municipal objectives.”
The full ruling is on CanLII: Tiny Township Association v Township of Tiny, 2025 ONSC 1578
Production Details
v. 1.0.0
Published: April 28, 2025
Last updated: April 28, 2025
Author: Joey Coleman
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v. 1.0.0 original version