Sarnia council has passed a bylaw regulating short term rentals, like Airbnbs.
The new regulations include a provision requiring primary residents to live in the properties at all times.
Councillor Mike Stark said short term rentals will be treated as businesses now and have restrictions imposed on them just as any other business would.
"Now the issue is whether we're too restrictive, or not, and it would be my hope that a year from now, we'll get a calculation of whether or not our regulations are in fact to oppressive and if they are maybe they need to be changed," said Stark.
Existing rentals will be grandfathered and allowed to continue operating without a primary resident.
Councillor Dave Boushy felt it was a good compromise.
"Unless we have these regulations, we're going to have the same problems that other communities have," said Boushy. "I think it's fair for us, for the community and it's fair for the operators."
Real Estate Broker Sean Ryan didn't agree.
"It's good for us, but bad for competition because it's going to raise prices," said Ryan. "I don't like it. I think it's bad for business. I think it's bad for transient workers. I think it's bad for companies that want to bring business here, there's not going to be anywhere for people to stay."
Council decided February 10 to start charging short-term rental operators fees and tax.
The initial license cost, which includes a property standards inspection and fire inspection, is $370.
It's expected the city will also start collecting the four per cent tax on the accommodations this month or next.
Operators have until June 30 to register their rental.