Update on Short Term Rental Regulations

On December 7, 2017, and January 31, 2018, City Council approved regulations for short-term rentals in Toronto. The new rules, which require short-term rental companies to obtain a licence and short-term rental operators to register with the City and pay a Municipal Accommodation Tax (MAT) of 4 per cent, were set to come into effect on June 1, 2018. However, the City’s zoning bylaw amendments to permit short-term rentals as a use were appealed to the Local Planning Appeal Tribunal (LPAT).

On November 18, 2019 the LPAT issued a ruling that dismissed the appeals and upheld City Council’s adopted zoning bylaw amendments for short-term rentals. The short-term rental zoning bylaw amendments are now in force. The amendments permit short-term rentals, (any rental that is less than 28 consecutive days), across the city in principal residences. Within their principal residence, people can rent up to three rooms or their entire home.

With this decision, the Licensing and Registration Of Short-Term Rentals Bylaw has also come into force. The City is moving forward with the implementation of the bylaw, as adopted by City Council. Once the licence and registration system is built, short-term rental companies will be required to obtain a licence and operators will be required to register with the City and pay the MAT of 4 per cent.

More information on City’s short-term rentals is available at  toronto.ca/shorttermrentals