Toronto just implemented some new short-term rental regulations for short-term rental platforms and short-term rental operators.
The short-term rental market in Toronto is currently seeing an abundance of supply. It is all because of the lack of international students, as well as far fewer immigration than we’d typically be seeing due to COVID.
Another reason for the increased short-term rentals is that the tourism industry is dead, and with it, so is the Airbnb rental market.
No wonder the other short-term rental companies also have to follow such new regulations on hosting short-term stays in the city of Toronto.
Short-Term Rental Bylaw (PG24.8)
As per the legislation, the city of Toronto will permit short-term rentals if the property is a primary residence .
Well, the primary residence is where a person lives and pays the bills.
One should register their listing on Toronto’s portal if they host their primary property. Hosts who are unable to register their listings must explain why they should be exempted. Moreover, the property cannot be offered for accommodation on a short-term basis if it does not have a valid registration number.
The registration process of AirBnB
The city’s municipal licensing asks short-term rental owners to enroll as a part of new rules to monitor certain short-term rental sites such as Airbnb, Expedia, etc.
Airbnb hosts have to complete the following information to register their Airbnb unit:
- Contact Information
- Details of the condo building available for short term rent
- Telephone Number as well as details of an emergency contact, if open the entire day
- Government-issued ID like a Photo ID card
- Lastly, a payment of 50 dollars through a valid credit card
This is mandatory for the operators who accept only short-term rental reservations and not long-term tenants.
Post-Submission of Documents
After submitting the documents, the city of Toronto will verify the applications. If the application is accepted, you will get a registration number through email in five working days. After that, you may update the contact details to the listing. If the city declines the request, the municipality will reach you and ask you to justify granting the registration.
Principal and Secondary Residence
You can use your principal residence as their primary or secondary suites. But, for that, you have to fulfil the building as well fire code requirements. Notably, people cannot provide their secondary properties as short-term rentals such as:
- An Investment Property
- A vacation home
Investment properties and ghost hotels are not included in the principal residence category. For rentals less than or about 28 nights, the Toronto government imposes a 4 per cent Municipal Accommodation Tax (MAT). Airbnb would pay tax on a quarterly basis.
As soon as you list your condo as a short-term rental, you have to add the following to it:
- Your Registration number
- Your Guests information
- An Emergency number
- An Emergency exit plan
The city could also ask you to provide detailed information. For instance, you have to mention the kind of rental, the number of nights leased, plus the amount charged.
Short-term rental operators can now lease up to three bedrooms in their primary unit for a limit of 28 days each stay.
At the same time, the residences that do not fit in the “up to three rooms” scheme of the Toronto city are not primary. In addition, an owner can only lease an entire unit for 180 nights every year.
The market for modest flats in high-rise residential complexes is generally the most popular flat category for Airbnb rentals.
Crime and partying are valid concerns for Airbnb short-term condos on rent. For instance, the Ice Condos just on the waterfront area received 311 accusations about short-term rentals the previous year.
A pressing concern has resulted in new Airbnb zoning bylaws to aid in providing affordable homes in the city.
Consequently, these city new rules will screen out property owners who have been making money illegally by marketing “ghost” residences.
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