The city of Toronto has changed their short-term rental regulations for vacation rental and Airbnb hosts, providing a new framework that hosts will need to comply with in 2020. The city is planning on implementing the new regulations for vacation rentals in various phases, with registration for short-term rental operators beginning in spring of 2020. Prospective short-term rental operators and hosts will have three months to register once registration opens. You can find more information about the regulation on the city’s website.
This article provides a comprehensive look at Toronto’s new short-term rental regulations, so that Airbnb and vacation rental hosts in Toronto can host while being compliant with their local regulations.
Summary of Toronto’s Short-Term Rental Regulations
- A property owner can only host a short-term rental in their principal residence.
- In order to offer a short-term rental, one must register with the city of Toronto and pay an annual registration fee of $50.
- An entire home can be short-term rented for a maximum of 180 nights per year.
- A property owner can short-term rent up to three bedrooms or their entire residence.
- Those hosting short-term rentals are responsible for a 4% MAT (Municipal Accommodation Tax) on rentals less than 28 consecutive days.
- Tenants and those living in secondary suites or laneway houses can also offer short-term rentals as long as they are renting their primary residence.
Toronto’s Airbnb Regulations for Hosting Vacation Rentals
The city of Toronto defines a short-term rental as the renting of any rooms or entire units for short periods of less than 28 days. Although the city of Toronto is awaiting decision from the Local Planning Appeal Tribunal, the general rules around short-term rentals have been largely decided.
Under the new rules, Torontonians will only be able to host short-term rentals in their principal or primary residence, with homeowners and tenants both able to participate. People living in secondary suites can also host short-term rentals as long as the secondary suite is their principal residence. In order to host short-term rentals, Toronto residents will need to register with the city and pay an annual fee of $50 to the city. Along with this, hosts will be responsible for a 4% Municipal Accommodation Tax (MAT) on all short-term rentals they host.
When registering, vacation rental hosts will need to provide the city with their contact information and address along with details of the short-term rental. Hosts will also need to provide the name and telephone number of an emergency contact person who will be available 24 hours a day during rental periods. The city of Toronto will also require that hosts keep all records of short-term rental activity which will need to be provided to the city upon request.
Hosts renting their entire home while they are away will only be able to rent their entire home for a maximum of 180 nights per year. While there is no limit of nights for renting private rooms, a host can only rent up to three bedrooms if they are renting multiple rooms in their residence. Hosts will also need to ensure that their property is located in a residential zone, or the residential component of mixed-use zones.
We cannot guarantee the accuracy of the regulations discussed in this article. Regulations often change on a regular basis, and we advise you to research the current regulations for your location. While we do our best to keep the information in this article updated, if you find an error, omission, or something that needs an update, please let us know.
Useful Links Related to Short-Term Rentals in Toronto
You can find more information about short-term rental regulations in Toronto at the links below. You’ll also be able to sign up for electronic updates on the city’s website, so that you can be notified as soon as the regulations are updated and put into place.
City of Toronto – Short-Term Rentals: https://www.toronto.ca/community-people/housing-shelter/rental-housing-standards/short-term-rentals/
City of Toronto – Licensing and Registration of Short-Term Rentals: https://www.toronto.ca/legdocs/municode/toronto-code-547.pdf
About Keycafe
Keycafe is a technology company modernizing business key management with a cloud-connected SmartBox and accompanying key management software.
In addition to a global Public Network of over 1000 locations for Airbnb users, Keycafe’s Enterprise Solution enables businesses in any industry to manage key access for staff and customers.
