OTTAWA -- Ottawa city council has voted in favour of new regulations to limit the use of short-term rentals, such as Airbnbs.

Hosts of short-term rentals will only be allowed to rent out their primary residences or cottages under the new rules. Hosts must also acquire a $110 host permit licence from the city to rent out their property.

Corporations would not be allowed to obtain short-term rental permits and if a condo corporation, landlord, or social housing provider has registered an objection with the city, permits would not be issued for those properties.

Violations of the bylaw could result in fines for both guests and host of up to $100,000 each day that an offence occurs and the city could suspend or revoke a host permit for violating the bylaw.

Council also passed a motion capping the number of people who can stay overnight in a short-term rental property at 10 people, down from the original 16 or 32, depending on the floor plan of the unit.

Coun. Diane Deans had originally moved the motion with a limit of eight people, but it was raised to 10 following debate.

"When someone invests in usually their single largest investment in their lives, their home, they expect to live next door to neighbours, not a turnstile of people coming in and out each weekend," Mayor Jim Watson said Wednesday.

Calling Airbnb and other platforms "disruptors", Watson said he believes the new rules strike a "reasonable compromise."

"Individuals can use their primary residence on an Airbnb platform, but we have to put in some reasonable limits," he said. "Having 25 or 30 people in one sports team moving next door to you for a weekend tournament is not reasonable but someone who wants to take a vacation and travel to our beautiful city has an option to stay at someone's home."

Councillors approved the new rules Wednesday, but Couns. George Darouze and Scott Moffatt dissented on the motion to cap the number of people who can stay in a short-term rental overnight at 10.