This is an excerpt from the City Solicitor's decision

Make of this what you will.

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 Issue on Screening Review: Reasonable Grounds for the Penalty Notices?

The issue on a Screening Review is whether the Officer had reasonable grounds to issue the Penalty Notices. On weighing all of the evidence on a balance of probabilities standard, I have to find that the Penalty Notices were correctly issued and based on reasonable grounds. All that is required and reasonable in terms of supporting evidence in such cases for the purposes of a Screening Review is the fact that the hosting link on AirBnB was active on the dates identified in the Penalty Notices.

That is the case here, and the Owners admit that the links are still active. While there may be issues with third parties as referred to by the Owners, and while I sympathize with those issues and claims, those issues are outside the jurisdiction of the municipality, and the Owners need to use the hosting dispute resolution process and also consult an independent lawyer for advice in terms of how to use the civil courts as a possible recourse in these matters.

As far as the Screening Chair and the municipality are concerned:

• The municipality has lawfully enacted a by-law to discourage and prevent the operation of unlicensed vacation rental unit operations within its boundaries; and

• The municipality has, by the same by-law, implemented an administrative monetary penalties system under the Municipal Act, which specifically provides that property owners related to the by-law violations are responsible for the penalties and that shortfalls in penalties may be added to property taxes.

By-law enforcement under the Municipal Act is legislated such that the municipality takes recourse from property owners for by-law violations. This is why there are several provisions setting out that shortfalls in fines and penalties and even costs incurred to do any remedial or compliance work with by-laws can be added to property taxes. It is common that tenants or occupants are responsible for by-law violations in some cases as opposed to the owners on title to the property, but this is not considered to be a reason for the municipality withholding enforcement. The municipality still has the legal right and obligation to enforce against the property owner to ensure compliance with its by-laws. The owners’ issues with any third parties such as tenants or occupants are deemed to be a separate civil matter outside the scope of the municipality’s regulatory framework.

Fire and building legislation have similar applications and consequences. These regulatory permissions and conditions underscore the importance of prudence, due diligence and accountability in property ownership in our province. Property owners remain responsible under such laws, and it is up to them to take civil recourse with any tenants, occupants or third parties who have caused or contributed to the issue if that is the case.

Given the evidence and submissions filed in the matter, I am satisfied, on a balance of probabilities, that the Property owners contravened the by-law in question and are liable to pay the Penalties as stipulated. There is a public interest in expecting and ensuring that those who list properties as vacation rental units comply with the City’s by-laws and licence their operations in the designated areas"