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How things have changed in the 19 years have been running the Bed and Breakfast. As one time Niagara on the Lake was one on the only municipalities with bylaws and requiring B&Bs to be licensed, now most tourist areas of Canada have them. The reason is of course the number of vacation rentals that have popped up across the country. Most of the bylaws have been to curb the vacation rental not the Proper B&B. The bylaw that most areas want is that it must be the owner’s primary residence. Not an issue with Bed and Breakfasts.
When buying a Bed and Breakfast in the Niagara Region, be aware of the bylaws that govern the business. As previously written on this website, each area is governed by different bylaws. In Niagara Falls, the focus is on fire protection, in Niagara-on-the Lake it is parking and numerous other items. Over the past couple of years the Bed and Breakfast Association has been working with the Town of Niagara on the Lake to ensure that the bylaws are fair and enforceable. There is nothing worse than running your B&B properly and your neighbour breaking the bylaws or even worse not getting a license. In Niagara on the Lake and Niagara Falls if you sell rooms for Short Term accommodation you MUST be licensed. The number of people who say to me "I am not going to run a B&B I am just going to AirBnB" I do not need a Licenses. WRONG. You need to get a license. The Cost of the fine is $500 per night that they can figure you have sold rooms. In Niagara Falls you get a cease and dismiss letter.
The Town of Niagara on the Lake makes changes to the bylaws every 4-5 years. These changes mildly affected the Bed and Breakfasts but for the most part the (vacation rentals/homes) are affected. Here are some of the changes for bed and breakfasts:
1) Licenses are now renewed every 4 years (changed from 2 years). Historically we paid every other year for a 2 year cycle but were inspected annually. Now we renew every 4 years and are inspected once every 4 years for bylaws and every other year for fire inspection.
This was a big change as the process was long with over 200 properties having to be inspected every year. In order to put this in place the area was divided into 4 sections, all B&Bs on the same cycle in that area.
2) Requirements.
Floor Plans: We have always had to submit floor plans, but now they need to be more professionally done. Not really an issue if the property you bought gave floor plans as part of the listing.
Electrical certificate: The property must be inspected every 4 years by a licensed electrician.
Gas Inspection: All gas appliances (including fireplaces, stoves, hot water tanks, furnaces) must be inspected by a licensed gas technician. All houses are supposed to get their furnace inspected each year.
3) Insurance. We have always had to have a $2Million rider on our home insurance for the Bed and breakfast, we now have had to add the Town on the policy. This has affected many B&Bs that purchase insurance from the same company that they have prior to moving here (I am one of those). However there are a couple of local insurance companies that are aware of the Bed and breakfast business in the area and are able to accommodate this request. (At one time the Town wanted to increase this to $5M, we fought and won - YEAH)
3) Definition of a Bedroom was added. This is interesting and as of yet I cannot how it affects bed and breakfasts; however it will have a major issue on cottages.
The end result has been very little for existing business. The issue is what happens when a house is converted into a B&B. This will be interesting; will the town be harsher on the existing by-laws (parking)?
Bosley Real Estate,
Trish Badham, Sales Agent
Cell 905-329-1563
Office 905-468-8600
Email: trish@Boselyrealestate.com
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