Toronto AirBNB Condo Rules

As an active participant in Toronto’s real estate market, I’ve watched recent changes in short-term rental regulations unfold with interest. The city has introduced new rules for short-term rental operators like Airbnb, reshaping the landscape for condo owners, renters, and investors alike. These changes come as a response to the pandemic’s effects on tourism and rental supply, leading to an abundance of short-term rental options across the city.

But what exactly do these new regulations mean for Toronto’s short-term rental market?

Let’s dive into Toronto’s Airbnb rules to understand their implications and learn how hosts can stay compliant in this evolving environment.

Quick Summary

• Nearly 70% of Toronto's Airbnb listings are located in areas with no hotel presence, offering more affordable stays in diverse neighborhoods across the city.
• In 2023, over a third of Airbnb listings in Toronto were for private rooms, with hosts typically sharing their homes for approximately 50 nights per year.
• Rental prices across different neighborhoods within Toronto vary, suggesting varying rental market dynamics within the city.

Understanding Toronto’s Short-Term Rental Bylaw (PG24.8)

The city of Toronto allows short-term rentals only if the property is the host's primary residence, meaning the place where they regularly live and pay bills.

Key Regulations

• Primary Residence Only: A host’s property must be their primary home to qualify for short-term rental use. Secondary properties, such as vacation homes or investment properties, do not qualify.
• Registration Required: All hosts must register their short-term rental on Toronto’s online portal and obtain a registration number. Listings without this number are non-compliant and may be removed from platforms like Airbnb and Expedia.
• 4% Municipal Accommodation Tax (MAT): Hosts must pay this tax on all short-term rental income. Airbnb remits this tax quarterly on behalf of hosts.

These rules aim to curb the rise of “ghost hotels” and prioritize housing for full-time residents, addressing affordability concerns and managing the growth of Toronto’s short-term rental market [1].

How to Register an Airbnb in Toronto

The city’s Municipal Licensing and Standards department now requires hosts to register as part of its oversight of short-term rentals.

Registration Process

Hosts need to submit:

• Contact Information: Including a valid phone number and 24/7 emergency contact.
• Property Details: Information about the condo building and unit.
• Government-Issued ID: Such as a photo ID.
• $50 Registration Fee: Payable via credit card.

Upon submission, applications are reviewed by the city, and hosts receive a registration number within five business days if approved. This number must be displayed on all listings.

Pro Tip: Hosts who cannot register must provide a valid reason for exemption.

Regulations on Principal and Secondary Residences

Toronto’s regulations distinguish between primary and secondary residences, with strict guidelines around what constitutes each type.

• Primary Residence: The host’s main home, which can be used for short-term rentals within the city’s restrictions.
• Secondary Residence: Properties like investment homes or vacation houses cannot be rented short-term.

Short-term rentals are capped at 180 nights per year for entire units. Hosts can also rent up to three rooms within their primary residence on a short-term basis, limited to stays of 28 days per guest.

These rules help regulate Toronto’s short-term rental market, ensuring that housing remains available to long-term residents and preventing abuse of the Airbnb platform.

Compliance Checklist for Toronto Hosts

To ensure your listing stays compliant with Toronto’s short-term rental regulations, include these essential details in your condo’s profile:

1. Registration Number: Display your Toronto registration number prominently on your Airbnb listing.
2. Emergency Information: Provide guests with emergency contact details.
3. Safety Plans: Include an emergency exit plan for guest safety.

Note: Hosts must be prepared to share additional information with the city upon request, such as rental type, number of nights, and rates charged.

Potential Impact on Toronto’s Real Estate Market

Toronto’s new Airbnb regulations are shaping the future of short-term rentals across the city:

• Affordable Housing: By limiting short-term rentals to primary residences, Toronto aims to increase the availability of affordable housing units for long-term renters.
• Reduced Partying and Crime: Stricter guidelines help reduce neighborhood disturbances often linked to Airbnb properties. For instance, in 2022, the Ice Condos near Toronto’s waterfront received 311 complaints related to short-term rentals.
• Elimination of “Ghost Hotels”: These rules target unregistered properties that operate as full-time Airbnb listings, removing illegal rentals from the market.

This new regulatory framework could gradually stabilize Toronto’s rental market, fostering a balance between short-term rentals and long-term housing needs.

Toronto’s Evolving Rental Landscape

Toronto’s short-term rental rules provide clearer boundaries for hosts while promoting a balanced rental market. Condo owners considering Airbnb listings must now navigate these updated requirements to remain compliant and protect their investments.

Whether you’re a prospective Airbnb host or a current condo owner in Toronto, staying informed on these regulations is key to successful short-term rental management.

Check out Precondo for the latest real estate updates.

References:

1. https://www.airbnb.com/help/article/2158