Wainfleet drops the hammer on short-term rentals

Scott and Joanne Wilson thought they had their retirement all figured out. In 2021 the lifelong Burlington residents bought a lakefront property in the Township of Wainfleet, a perfect spot just 60 minutes down the road. A place they could use as a family cottage until they were ready to finally retire and move there permanently. 

With only a few years to go before retirement they decided to list the home as available for short-term rentals in an attempt to help carry the costs and cover the renovations that would eventually be required. For two-and-a-half years things went according to plan, they raised their growing family in Burlington and made plans for the big move to Wainfleet.  In March 2024 their carefully crafted plans began to unravel and before they knew it the family dream took a nightmarish twist.

That’s when the Wilson’s received a registered letter from the Township notifying them that they were in contravention of its new Short Term Rental bylaw (STR) and giving them until April 4th to come into compliance, or face alarming penalties. On April 6, 2024, each of the Wilsons received their first fine from the municipality for $10,000. According to Wainfleet, the bylaw stipulated that each property owner be fined individually for operating a short-term rental without a license. Since both Scott and Joanne are listed on the property title, they each initially received a $10,000 fine. Just a week later, both were hit with an additional $15,000 fine, followed by two further fines of $20,000 each in subsequent months. Within four months their debt to the Township soared to $90,000, with interest accruing daily.

The Township of Wainfleet has instituted a Short Term Rental bylaw that has severe fines for violating the rules.

(Township of Wainfleet)

The bylaw in question was instituted on July 18, 2023, establishing for the first time the need for all short-term rental operators, such as Bed and Breakfasts and Airbnbs, to obtain a license to legally operate within Wainfleet. It outlines the processes and restrictions for obtaining a license and lists the penalties and fines for non-compliance. It does not list a readily discernible purpose for the bylaw.  

The fine for operating a short-term rental (STR) without a valid license is steep: $10,000 per owner for the first offense, $15,000 for the second, and $20,000 for each violation thereafter. With penalties this severe, it's clear how the Wilsons quickly found themselves in a life-altering predicament—one they fear could ultimately cost them their home.

In an interview with The Pointer, Scott Wilson explained that he and his family were unaware of the Township’s new regulations until it was too late. He maintains that they only found out about the bylaw when they received the notification in March.

He provided the Township with an email on April 1, explaining his family's intention to move into their Wainfleet home in May and to cease any further short-term rentals. In the email, he disclosed the pre-contracted rental dates he felt obliged to honour and assured the Township that no additional bookings would occur after these. Wilson also requested a meeting, hoping to engage Township staff in resolving the situation.

He felt confident that this proactive disclosure would lead to a cooperative solution, taking into account what he saw as his legal and ethical duty to fulfill existing rental agreements. The pre-booked rentals included a family from France and a dragon boat race team from Seattle that wanted to stay together during the competition.

“It would have been awful to cancel the accommodation of a team shortly before their event,” he said. He assumed a practical, common-sense solution would be considered by the Township and a fair resolution could be achieved. 

It turns out the Township was not in a mindset for discussion or cooperation.

Scott Wilson outside his home in Wainfleet.

(Ed Smith/The Pointer)

Wilson’s initial contacts with the Township began with the bylaw enforcement division. According to him, their response was not just unhelpful—it bordered on disrespectful. Instead of engaging in a dialogue, the enforcement officials took the information Wilson had provided openly about his upcoming rental bookings as an admission of guilt and used it to cite him multiple times for bylaw violations. There was no attempt to discuss or negotiate. Wilson felt shut down, with no opportunity for a constructive exchange. For Wilson, the situation reached a critical point during a phone call on April 19. During this call, and already facing $20,000 in fines, he was informed by Township staff that his outstanding fines would be transferred to his property tax account. If the fines remained unpaid, they warned, the Township would initiate procedures to seize his home to cover the debts.

Believing there was still a chance to resolve the matter, Wilson escalated his concerns to senior Township staff. In this meeting, he fully disclosed his remaining rental commitments and reiterated his intention to stop all rentals once these pre-contracted obligations were met. As he later explained to The Pointer, “I did not know the law, and did not pretend to know the law; I just knew the bylaw seemed very harsh, and that there must be room for discussion when something like this happens.” He left the meeting feeling hopeful, believing Township management understood his position and would work with him to find a fair solution.

That optimism was short-lived. Despite what appeared to be a receptive audience among senior staff, no resolution materialized, and the fines continued to accumulate. Wilson’s hopes for a cooperative solution faded as he realized the Township’s enforcement process remained rigid, leaving him with escalating penalties and no clear path forward.

The Township of Wainfleet, in a statement on its website, asserts that it made substantial efforts to inform the public about the development of the new bylaw, stating it provided regular updates over two years through its website and social media. Wilson does not contest that the Township may have posted these updates while they were creating the bylaw, but points out that he doesn’t follow the Township’s social media feeds or website. He explains that he only became aware of the new regulations after receiving a notice in March and subsequently researching the bylaw himself.

The Township of Wainfleet relies on Ontario’s Administrative Monetary Penalties (AMPs) program, which grants municipalities the authority to manage minor bylaw infractions internally. This system was developed to streamline the resolution of local issues, such as bylaw compliance, by reducing pressure on provincial courts and creating a faster, more accessible pathway for addressing disputes. Before AMPs, citizens had the option to contest fines through the judicial system, allowing for an independent review. However, with AMPs in place, municipalities themselves handle both the imposition and adjudication of fines, effectively centralizing the process within local governments.

Wilson believes this shift in authority has unintended consequences, particularly regarding fairness and transparency. He argues that removing judicial oversight leaves residents without an impartial avenue for appeal, creating an imbalance of power. Since the municipality has the discretion to enforce and resolve its own fines, citizens must rely on the very body imposing the penalties to review their disputes—a situation Wilson views as inherently biased and susceptible to misuse. For residents like him, the lack of access to an independent judicial review represents a significant drawback in the program’s current structure, undermining the fairness that AMPs initially aimed to provide.

Wilson clarifies that, while he supports the AMPs program in principle—especially its objective to address minor bylaw issues locally and reduce court congestion—he feels its implementation has gone astray. He recounts feeling shocked when Township staff informed him that he could not appeal his fines in a traditional court of law; his only recourse was within the Township’s internal processes. To Wilson, this restriction is deeply concerning. He explains that without an independent judicial review, he has little confidence in an unbiased hearing conducted either by municipal employees or by a Township-appointed paralegal reviewing his case.

With few options left and a strong determination to seek justice, Wilson took his situation public, launching an advocacy campaign with far-reaching impact. He founded a nonprofit organization called the Wainfleet Association of Responsible Short Term Rentals (WAR-STR), where he serves as President.

WAR-STR’s mission, as stated on its website, is to “defend the rights of property owners and stakeholders in Wainfleet by challenging unjust regulations, empowering individuals to take legal action, and fostering a community of support and advocacy.”

To fuel this initiative, WAR-STR set up a GoFundMe campaign to gather funds for anticipated legal challenges against the Township. The organization has also produced several videos to raise awareness and build support, and it has begun recruiting participants for a proposed class-action lawsuit. As of November 7th, ten individuals had joined the class action, with an eleventh expected to sign on shortly. Through these actions, Wilson aims to rally local support and challenge what he perceives as unjust and overreaching regulations affecting property owners in Wainfleet.

On July 17, the Township of Wainfleet received official notice that it was being sued by the Wainfleet Association of Responsible Short Term Rentals (WAR-STR), which had initiated legal proceedings to challenge the Township’s short-term rental bylaw. The application from WAR-STR seeks a court order to quash the bylaw, either partially or entirely, on the grounds of "illegality and unreasonableness." In addition to seeking costs, the application includes a request for other legal remedies, as counsel deems appropriate.

The lawsuit argues that several aspects of the bylaw overreach reasonable enforcement and cross into punitive measures. It points to the provincial guidelines for Administrative Monetary Penalty (AMP) systems, which emphasize that penalties should be set at levels necessary to ensure compliance—not as a form of punishment.   

The initial draft of the Wainfleet bylaw, presented to Council on February 21, 2023, proposed fines of $1,500 for a first offense of operating a short-term rental (STR) without a license and $2,000 for each subsequent violation. However, during council discussions, the proposed fines began to rise. When councillors suggested amounts far beyond the original recommendation, Lindsay Earl, Manager of Community and Development Services, advised caution, reminding them that “under the AMP’s provision, penalties should not be punitive in nature, so starting at $5,000 and going up to $20,000 may be a bit high.” Nevertheless, Council persisted in pushing for steeper penalties.

Their intent seemed well reflected by Councillor Joan Anderson, who stated that Council must ensure “those who are not operating a safe rental, both for themselves and their neighbors, are subject to severe penalties and fines.” Despite this strong stance, the meeting concluded without a final decision on the fine amounts. Council revisited the issue in a closed session on July 6, 2023, and, at an open meeting on July 18, passed the bylaw with fines ranging from $5,000 to $20,000.

Laurel Duquette and her husband own a cottage in Wainfleet and have joined the lawsuit started by Wilson. In an online video she describes how the couple, living on limited pensions, rented their cottage to families for two weeks each year—only to families, only two weeks per year—using the income to cover property taxes.

In May, when Duquette learned of the Township’s new restrictions, she decided to close her Airbnb listing altogether to avoid potential issues. She only briefly reconsidered the idea in June, reaching out to Airbnb for help with a possible listing. After a “1-2 hour” discussion and work session with a representative, she ultimately chose not to pursue it, and the listing was permanently deactivated.

Duquette speculates that a Township bylaw officer must have seen her listing during this short working session when it was visible, even though it was never open for bookings. She points out that when the bylaw officer tried to locate the listing later he could not find it. She says that is not surprising as it was no longer accessible, it had been closed since mid-May. According to her you were never able to make a booking, reservations were blocked and had never been unblocked. Nevertheless, a few days later she received a $10,000 fine for "advertising on Airbnb without a license."

She goes on to describe how her neighbours told her that the bylaw officer had “come around to them” asking if she was renting her place (they all told the officer she was not), taking pictures of her car and her home at the same time. Duquette says “It really was truly a reign of terror.”

In response to questions from The Pointer Wainfleet Mayor, Brian Grant, stated that”

“The Township established the administrative penalty amounts with careful consideration of the relevant legislation. A small number of STR operators have started a court challenge to the bylaw, including the administrative penalty amounts, which the Township will fully defend.”

 A statement on the Townships website claims staff worked closely with experts on the regulation of STR’s in Ontario and is confident of the legality and legitimacy of the bylaw.  Asked by The Pointer who the experts were they worked with the Mayor responded:

“Township staff consulted with municipal colleagues who have similar issues and experience, as well as legal counsel, to develop the bylaw, after receiving extensive input from stakeholders including STR operators and residents impacted by STR operations.” 

Although Grant did not specify which municipalities the Township had consulted in developing its short-term rental bylaw, there are notable similarities between the Wainfleet bylaw and one recently implemented in nearby St. Catharines. Both bylaws include provisions for fining each listed property owner of an unlicensed STR, effectively doubling the fine for a property with both spouses listed on the documents. While Wainfleet’s fines started at $10,000 and climbed from there, St. Catharines set its daily fines at $1,000 per owner, per day. Like Wainfleet, St. Catharines relied on social media, its website, and local radio for public notification, which property owners later argued was inadequate. Unsuspecting citizens in St. Catharines were shocked to be served fines in the many thousands of dollars with no knowledge that a new bylaw had even been passed.  Wainfleet’s monetary penalties have managed to bypass St. Catharines by a significant order of magnitude. The St. Catharines bylaw came into effect eight months prior to Wainfleet’s. 

A series of fines handed to the operator of a bed and breakfast in St. Catharines.

(Ed Smith/The Pointer Files)

In St. Catharines public outcry over the heavy handed implementation led the city to halt the proactive issuance of penalties and re-evaluate the bylaw. The council has since tasked staff with revising the regulation and creating other options for Council to consider, although they do claim there are no mechanisms for undoing the damage the bylaw has already done.  

The growing backlash in both cities underscores broad questions about how municipal AMP programs can balance effective enforcement with reasonable and fair treatment of citizens and begs the question whether local councils can be trusted with such overwhelming powers. 

To quote Scott Wilson, “What country is this happening in?  Because it doesn’t feel like the Canada we know.”

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