My wife Janna and I operate a short-term accommodation on our property in Prince Edward County. I'm not writing this as someone who has studied the market from the outside — I'm writing it as someone who has lived it, navigated the licensing process, dealt with guests, managed the calendar (well, mostly Janna), and figured out what actually makes the difference between a good STA and a great one. If you're thinking about buying or already own property in PEC and want to understand how STAs work here, this is the honest version.
Inside our STA on the homestead — reclaimed wood ceiling, lime plaster walls, polished concrete floor. The space tells the story of the property.
The Two Types of STA Licence — and Why It Matters
In Prince Edward County, there are two types of short-term accommodation licences, and understanding the difference is the most important thing a buyer or prospective operator needs to know.
Primary Residence STA — This applies to a property where you, the owner, live for more than six months of the year. Within this category there are two sub-types:
Category A: you're on-site year-round and can rent a suite or portion of your home while you're present. Category B: you're on-site for most of the year but can rent the entire property for up to 45 days annually while you're away. This is what Janna and I operate — a suite on our primary residence property that we rent while continuing to live here.
Secondary Residence STA — This applies to a property that is NOT your primary residence: a cottage, investment property, or second home rented entirely to guests. Here's the critical detail: the County stopped issuing new secondary residence STA licences on September 20, 2022. If you're buying a property and hoping to run it as a full secondary STA, a licence is not something you can apply for from scratch — the only path is purchasing a property that already has one.
The Grandfathered Secondary Residence — What Transfers, What Doesn't
A licensed secondary residence STA in PEC carries what's called "legal non-conforming" — or grandfathered — status. When that property is sold, the new owner can apply to continue operating under that licence. This makes those properties meaningfully more valuable than comparable unlicensed ones, and it's something buyers should be actively looking for if STA income is part of their plan.
But grandfathered status is not unconditional. To apply for the licence as a new owner, you need to establish that the use has continued — which means demonstrating rental receipts within the past 24 months. If the property has been sitting empty or has been used only as a personal retreat without documented guest stays, the grandfathered status may be at risk.
There are also physical conditions: the floorplan of the building must remain the same as when the original licence was granted. New bedrooms cannot have been added without proper permits and documentation. And the property still has to comply with current Fire Code, Building Code, life safety, and insurance requirements — grandfathered doesn't mean exempt from safety standards.
Getting Licensed as a Primary Residence — What's Actually Required
If you own your primary residence in PEC and want to operate a short-term accommodation on the property, you can apply for a primary residence STA licence. The process involves proving that the property is your principal residence — driver's licence, tax documents, utility bills in your name at that address — and meeting the County's fire and safety requirements.
On the safety side, expect to address things like: smoke and carbon monoxide detectors in all sleeping areas, fire extinguisher accessibility, proper egress from guest sleeping areas, and depending on the size and configuration of the unit, a fire inspection may be required. These aren't onerous if you're starting fresh and build them in from the beginning — they become expensive if you've already finished a space that doesn't meet code.
Insurance is its own conversation. Standard homeowner's insurance does not cover short-term rental activity. You need a policy that specifically includes STA or vacation rental use — talk to your broker before you list your first guest, not after.
The Municipal Accommodation Tax — Collect It, Remit It
All STA operators in Prince Edward County are required to collect and remit a 4% Municipal Accommodation Tax (MAT) on every stay under 30 consecutive days. This applies to hotels, motels, inns, B&Bs, and short-term vacation rentals equally — there's no exemption for small operators.
In practice, this is straightforward: you add the 4% to your nightly rate as a separate line item (most booking platforms handle the calculation automatically), collect it from guests, and submit it to the County on the required schedule. Failing to register as a MAT collector and remit is a compliance issue — don't skip this step.
The revenue from the MAT is split: half goes to the municipality for tourism infrastructure, and half goes to tourism marketing organizations that promote the County to visitors. In 2025, the County collected over $1.5 million in MAT. Your guests are contributing to the very marketing that brings more guests — it works in your favour.
What You Can Actually Earn — Honest Numbers
PEC is one of the stronger short-term rental markets in Ontario. The tourism draw is real, the peak season is long by rural standards, and guests who come here tend to spend well. But the income varies enormously depending on your property type, location, quality of presentation, and how well you manage your pricing and calendar.
August is peak — expect your highest rates and near-full occupancy if your listing is well-optimized. February is the low point. Spring and fall have been getting stronger as shoulder-season tourism grows in the County, driven by wineries, cycling, and the arts scene. A well-run waterfront or unique-concept property can command premium rates year-round.
Don't let the top numbers set your expectations without accounting for costs: platform fees (typically 3–5% on Airbnb), cleaning between stays, regular maintenance, supplies, and if you're not managing it yourself, property management runs roughly 10–12% of gross revenue. Run the actual math before you buy.
What Running It Well Actually Looks Like
The STAs that consistently outperform are not the nicest properties — they're the best-run ones. A clean, well-photographed, accurately described mid-range property with a responsive host and glowing reviews will outperform a beautiful property with poor communication and inconsistent cleaning every single time.
Photography matters more than almost anything else. Your listing photos are your storefront. Hire a professional or take the time to learn good interior photography — natural light, wide angles, styled spaces. Guests are scrolling dozens of options and making split-second decisions. Flat, dark, cluttered photos lose bookings to average spaces with great photos.
Pricing is dynamic, not set-and-forget. Tools like PriceLabs or Wheelhouse connect to your listing and adjust nightly rates based on local demand, events, seasonality, and competitor pricing. If you're manually setting a flat rate and leaving it, you're leaving money on the table in peak periods and losing bookings in slow ones.
Cleaning is your reputation. Guests will forgive a creaky door or an aging appliance — they will not forgive a dirty space. Establish a reliable cleaning team, do walkthroughs, and have a protocol for quick turnovers. This is where good STA operations get built or broken.
The guest experience beyond the booking. Clear check-in instructions, a thoughtful welcome, a local guide with your honest recommendations for restaurants, beaches, and wineries — these things generate five-star reviews. In PEC especially, guests want to feel like they're getting insider access to the County. You live here. Use that.
Details matter. The plaster texture, the hanging plants, the natural light — guests notice and photograph what makes a space feel different from a hotel room.
"The STAs that consistently outperform are not the nicest properties — they're the best-run ones."
Key Things to Know Before You Start
- No new secondary residence licences — the only way to operate a full STA on a non-primary residence is to purchase a grandfathered property
- Primary residence STAs are still available — if the property is your principal residence, you can apply to rent a suite or the whole home (up to 45 days/year)
- Grandfathered status transfers — but requires current licence, documented rental history in the past 24 months, and compliance with fire/safety codes
- 4% MAT is mandatory — register as a collector, add it to your nightly rate, and remit it to the County on schedule
- STA income is taxable — track your revenue and expenses carefully; deductions are available but so is CRA scrutiny
- Standard homeowner's insurance doesn't cover STAs — get the right policy before your first guest arrives
- Photography, pricing, and cleanliness are the three variables most within your control and most predictive of your results
- Contact PEC directly — rules evolve; always verify current requirements at sta@pecounty.on.ca or 613-476-2148 ext. 2050
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