If you own a cottage near Huntsville, you have probably heard that the Town has tightened its short-term rental rules. The rules make sense once someone lays them out, but they are spread across a by-law, a licensing page and a tax page. Here they are in one place, with the dates that matter this fall and winter.

This is general information, not legal advice. The Town of Huntsville has the final word, so please confirm details with them before you apply, renew or advertise.

Do you need a licence?

If you rent out rooms or a whole cottage in Huntsville for 30 days or less, yes. The Town's Short-Term Rental Accommodation (STRA) program exists to make sure rentals are safe and meet fire and building code standards.

You also cannot advertise a short-term rental without a licence. A listing that goes live before the licence is issued is itself a problem.

The 250-licence cap and the one-year ownership rule

Two 2025 changes reshaped the rules:

• A cap of 250 licences. Licences are issued first come, first served. If the cap has been reached, new applicants have to wait until November 1 to apply.

• One full year of ownership before you apply. In your first year of ownership you can use the cottage yourself or rent it for 30 days or longer, but not short term.

Licences do not transfer. A licence expires when the property is sold, so a buyer starts from scratch, including the one-year wait. If you are thinking about buying in Huntsville with rentals in mind, plan your first year around this.

There is also a location rule. Short-term rentals are only allowed in areas of the Community Planning Permit By-law that permit them. Since September 2025, new STRAs are no longer allowed in the Urban Low Density Precinct (UR1). Existing UR1 rentals can carry on, even through a sale, but lose that protection if the property goes more than two years without operating as a licensed STRA. If you are not sure which precinct your property is in, ask the Town before you do anything else.

Key dates: renewals and new applications

Every Huntsville licence expires on December 31 of the year it was issued. Here is the calendar:

• November 1: renewal applications open for licences in good standing.

• December 31: renewals submitted by this date are considered before any new applications. This is the date that protects your spot under the cap.

• After December 31, up to the first full weekend in February: late renewals are still accepted, but they join the queue with new applications for any licences that are left.

• After the first full weekend in February: a late renewal is denied, and the property has to apply again as a new application, at new application fees.

• January 1: new applications open for any remaining licences. To get a licence for that year, a new application has to be fully complete, including the on-site inspection, by October 31.

The Town says new applications take about six weeks on average to be issued. An application that is not completed within five months of submission is rejected, so start early and keep it moving.

If you already hold a licence, put November 1 to December 31 in your calendar now. Under a cap, a missed renewal is the easiest way to lose your place.

Fees

The Town's published 2026 fees are:

• New application: $750 for a principal residence, $1,000 for a secondary residence

• Renewal: $375 for a principal residence, $750 for a secondary residence

The Town sets these fees and can change them each year, so check the licensing page for the current year before you apply.

What to have ready for your application

Applications are submitted online through the Town's Cloudpermit system. For a new application, the Town asks for:

• Proof of ownership and property information

• Property management information

• Proof that the applicant is at least 18

• A certificate of insurance, with the rental clause highlighted

• Links to your online listings

• A written waste disposal plan telling renters how to handle garbage and recycling during and after their stay

• A floor plan, a site plan and a fire plan. The Town posts samples on its licensing page.

A few more items from the by-law catch owners by surprise:

• Septic systems 25 years or older need a site report from a qualified septic professional describing the current state of the system. Reports more than 12 months old are not accepted.

• A signed MAT return form and proof that the property is in good standing are part of the application.

• The application fee has to be paid before the on-site inspection can be booked.

Renewals ask for a shorter list, including your licence number, insurance, listing links and the number of bedrooms and occupants.

The site inspection

Once your paperwork is accepted, you arrange an on-site inspection with the Town. The inspector checks the cottage against your documents, including:

• Bedrooms and sleeping areas

• Fire safety equipment. The by-law requires an ABC fire extinguisher in any cooking area and a BC or better extinguisher on each floor.

• Waste disposal

• Parking

• Exits

• General upkeep

The Town's safety tips also call for working smoke and carbon monoxide alarms outside each sleeping area and on every storey.

Running your rental within the rules

Getting the licence is half the job. These rules apply every time guests are there:

• Occupancy: two people per approved guest room, to a maximum of 10. Rooms with pullout couches or murphy beds count as guest rooms. Children under 4 are not counted as occupants, and daytime visitors are not counted.

• Only rent approved rooms: you can only rent and advertise the rooms shown on your approved floor plan.

• Honest listings: your listing cannot show more guests than your licence allows, and it cannot invite guests to "ask about" bringing more people.

• Parking: one parking space per guest room, on a hard surface such as gravel or pavement.

• A responsible person: someone the Town can reach within 30 minutes, who can be on site within 60 minutes if there is an emergency or a by-law problem.

• Information for guests: post the licence on the outside of the main entry door, and leave copies of the Noise, Fireworks and Burn by-laws, the site plan showing parking, the floor plan with exits, and the Renter's Code of Conduct.

• Tell the Town about changes to your approved information or plans within 7 days.

Complaints and strikes

Neighbours can report problems to the Town's 24-hour hotline. The Town's licensing page says a licence will be revoked if three valid, non-concurrent complaints are lodged within two years.

The by-law also uses a strike system that lasts two years. Some offences count double. Advertising more guests than your licence allows, or renting a room that was not approved, counts as two strikes, and the Town can revoke a licence at three. Under a cap, a revoked licence may not be easy to get back.

The owners who do well keep it simple: clear house rules, quiet hours, a garbage plan guests follow, and someone local who answers the phone. If garbage is a worry, we wrote about what happens when guests get it wrong, and the system that fixed it.

Don't forget the Municipal Accommodation Tax

Huntsville charges a 4% Municipal Accommodation Tax (MAT) on stays of less than 30 days. It applies to the accommodation charge only, not cleaning fees or deposits. Short-term rental owners report and remit quarterly, by April 30, July 31, October 31 and January 31.

One thing many owners miss: the Town says Airbnb does not currently collect Huntsville's MAT. You need to set it up on your listing and send it in yourself.

How Homeseeker helps Huntsville owners

We are a local cottage rental management company, and Huntsville is one of the areas we know well. For owners who want help, we can:

• Walk you through whether your property is eligible, including the ownership rule and your precinct, before you spend money on an application

• Help you pull together the application checklist, including the waste disposal plan, listing links and renewal reminders, so nothing slips past a deadline

• Set up your listings so the guest count, approved rooms and house rules match your licence

• Look after guest communication, house rules, quiet hours and garbage instructions, so small issues do not turn into complaints

• Coordinate cleaning and turnovers, and keep an eye on the cottage between stays

For more on what cottage owners are asking this year, from boathouses to succession planning, see our Top 10 Questions Cottage Owners Are Asking in 2026.

This article is general information, not legal or tax advice. Rules, fees and cap availability can change, so always confirm current requirements with the Town of Huntsville before you buy, apply or advertise.