Toronto Airbnb Legislation Delayed Until Next August

New Rules have not yet come into effect for short-term rentals in Toronto due to an impending appeal.

Last December City Council approved the regulation of short-term rentals in Toronto. The new rules require individuals and short-term rental companies to obtain a license and to register with the City and pay a Municipal Accommodation Tax (MAT) of 4 per cent. However, the City’s zoning bylaw amendments to permit short-term rentals as a use have been appealed to the Local Planning Appeal Tribunal (LPAT). The LPAT had scheduled a hearing this past August. At the hearing it was determined that two days was insufficient time for the proceedings and a five-day period would be more appropriate. For that reason, the LPAT hearing was adjourned and re-scheduled for August 26, 2019.The City’s regulations for short-term rentals?will not?come into force until after the appeal decision is reached. 

Here are the new rules although they are not yet in effect: 

• Short-term rentals are permitted across the city in all housing types in residential and the residential component of mixed-use zones.
• People can host short-term rentals in their principal residence only – both homeowners and tenants can participate.
• People can rent up to three bedrooms or entire residence.
• People who live in secondary suites can also participate, as long as the secondary suite is their principal residence.
• An entire home can be rented as a short-term rental if owner/tenant is away – to a maximum of 180 nights per year.
• People who rent their homes short term must register with the City and pay $50.
• Companies such as Airbnb must become licensed and pay a fee of $5,000, plus $1/night booked through the platform.
• People doing short-term rentals must pay a 4 per cent Municipal Accommodation Tax (MAT) on all rentals that are less than 28 consecutive days.
• Companies such as Airbnb can enter into voluntary agreements to collect the MAT on behalf of those associated with their company.

City of Toronto: Short-Term Rentals

Airbnb: Listings for Toronto