Local government short-term rental regulation efforts

Local governments in Australia and Canada are actively developing and reviewing policies to regulate short-term rentals (STR) to balance tourism needs with residential housing stability.

In Cairns, Australia, the Regional Council has rejected recent Airbnb applications in residential areas while working to finalize a new planning policy. Councillor Matthew Tickner noted that the industry has operated with “limited oversight for 14 years” and expects a new strategy to establish clearer benchmarks.

In Canada, regulatory approaches vary by municipality. In Whitehorse, the city council postponed a vote on a bylaw that would restrict short-term rentals to an operator’s primary residence, citing concerns over administrative readiness and potential tax compliance issues. Meanwhile, the Lake Cowichan town council is considering a policy to streamline STR approvals to combat a local accommodation shortage. Mayor Tim McGonigle indicated that current site-by-site authorization is “cumbersome, expensive, and unsustainable for staff.” The town aims to expand lodging options to support local businesses while ensuring regulations do not disrupt the long-term rental market or vacancy rates.