Residential rental licences

Residential rental units in low-rise (under 3 storeys) buildings require an annual licence. 

If you think someone is renting without a licence submit a complaint online or contact the bylaw department at 519-747-8785.

Short term rentals, like Airbnbs, require a residential rental licence if they are located in a low-rise residential building.

Full details are in the rental licensing bylaw page.

On this page

1. Short-term rental licence
2. First time applicants
3. Learn what class of licence you need for your rental
4. What you need to renew
5. Application and renewal process
6. First time application fees
7. Renewal fees

Short-term rental licence

Beginning January 2025 Waterloo requires a rental licence for short-term rentals like Airbnbs and Vrbo, or any other third party or private bookings for short-term rentals. Enforcement will begin in May 2025 to allow residents to comply with our new regulations. 

Who needs a short-term rental licence:

• a person renting their house or lived space for 30 straight days or less on advertised platforms like Airbnbs and Vrbo
• they reside within the rental unit
• buildings that require a rental licence:
  • apartment buildings under three stories that have more than four units
  • single detached homes
  • duplexes
  • townhouses

If you meet the above requirements, you will need to apply for a short-term rental licence. You cannot operate a short-term rental unit that is not occupied by the owner.

What happens if I don't comply:

• owners face a fine of $400 on the first offence
• owners face a fine of $800 on the second offence
• owners who don't live in their short-term rental licence by April 30, 2025 must discontinue operations

Someone applying for a short-term rental must apply for a ‘Class B’ rental licence.

For assistance with your application, reach out to rental@waterloo.ca 

First time applicants

If you're applying for the first time, complete the required documentation:

1. Application form (PDF)
2. Electrical system inspection form (PDF)
3. Gas or oil heating appliance inspection form (PDF) and/or Declaration of no gas or oil fuelled appliances (PDF)
4. Insurance declaration (PDF)
5. Owner authorization (PDF)
6. Floor and parking plans (can be hand-drawn provided they are to scale, see Section B of the application form for further details)
7. Proof of ownership by transfer agreement of deed (see Section B of the application form for further details)
8. Corporate Ownership (if the property is owned by a corporation), dated within the past year. Articles of Incorporation or Corporate Profile Report are acceptable
9. Police criminal record check within 12 months of application date

If you have questions about document requirements or would like a sample application, contact 519-747-8785 or rental@waterloo.ca.

Watch our video on everything you need to know on residential rental licences

Learn what class of licence you need for your rental

You will need a licence that falls under one of the following classes.

• Class "A" Licence is for a typical rental unit not covered by other licence classes. This class of licence typically applies to single detached, semi-detached, duplex, triplex, townhouse, secondary units, and basement units. This class limits bedrooms to a maximum of four per unit. 
• Class "B" Licence is for an owner-occupied unit, including short-term rentals. Limits short-term rentals to 275 days per year and a maximum of 30 days per rental. This class limits bedrooms to a maximum of four.
• Class "C" Licence is for large rental units with five or more bedrooms with shared kitchens and bathrooms operating as boarding or lodging houses. Compliance with fire and building codes is required. 
• Class "D" Licence is for recognized lodging houses that were previously licensed under older regulations. These licences are limited to properties already approved for this use and cannot be renewed if allowed to lapse. 
• Class "Z" Licence is for units within buildings with four or more horizontally separated dwelling units, but that also do not meet the full definition of an apartment building.

What you need to renew your licence

You will receive a renewal notice in the mail before the licence expiry date. You must submit an up-to-date gas or oil heating appliance inspection (PDF) or declaration of no gas or oil-fueled appliances (PDF) and insurance declaration form (PDF) every year.

You must submit an updated police criminal record check and electrical system inspection form (PDF) every five years.

How to obtain a police record check

• a police record check is required for each property owner and applicant if not an owner.
• if the property is owned by a corporation, a record check is required for all shareholders owning more than 30% of the corporation, each director and officer of the corporation
• the check needs to be dated within 12 months of the application submission date
• you can obtain one at using the Sterling Backcheck online service or your local police service

Application and renewal process

First time application fees

Renewal Fees

Late licence renewal fees applications are subject to a $50.00 late fee.