Toronto to enforce short-term rental bylaw starting next month

Aug 25 2020, 10:09 am

City of Toronto announced that registration of short-term rentals will launch on September 10 as they begin to enforce the new bylaw.

On Tuesday, the City said a new online registration system will launch for short-term rental operators who are renting their homes on a short-term basis for a period of less than 28 consecutive days.

Beginning September 10, short-term rental operators will need to start registering with the City in order to operate in Toronto.

“Registration is a necessary first step to allow the City to effectively administer the new rules applicable to short-term rentals,” the release says.

According to the City, people who are currently renting their home on a short-term basis must be registered by December 31. After this date, all new operators will be able to register on an ongoing basis and must register prior to short-term renting their homes.

In Toronto, short-term rentals are regulated by the City’s zoning bylaws and the Licensing and Registration of Short-Term Rentals bylaw:

  • City bylaws permit short-term rentals across Toronto in all housing types in residential zones and the residential components of mixed-use zones.
  • People can short-term rent their principal residence only. This is the residence where they live and where the address is used for bills, identification, taxes or insurance.
  • Both homeowners and renters in any housing type (e.g., house, apartment, or condominium) are allowed to short-term rent their home.
  • People can rent up to three bedrooms in their principal residence for an unlimited number of nights per year or their entire home for a maximum of 180 nights per year.
  • People can host a short-term rental in a secondary suite (e.g., a basement apartment) or a laneway suite as long as the suite is their principal residence.

It’s important to note that people can short-term rent their homes in Toronto only if they are a registered operator, and a valid City-issued registration number must be included in all advertisements and listings.

“Registered short-term rental operators will need to start collecting and remitting the four per cent Municipal Accommodation Tax (MAT) on a quarterly basis starting January 1, 2021. More information on how to collect and make the MAT payments will be provided in fall 2020,” the release adds.

The City also requires short-term rental companies to obtain a licence from the City in order to carry on business — like Airbnb, Expedia and Booking.com.

The City says they are currently working with short-term rental companies on the licensing process and that more information is available on the City’s website.

Over the next few months, the Toronto staff will educate the public on the rules, get operators to register their short-term rentals, and work with companies to ensure compliance with the licensing rules.

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