Toronto short-term rental regulations in 2022

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As of September 10th, 2020, the city of Toronto launched a new registration system with which short-term rental hosts are obliged to comply. First of all, a short-term rental was redefined to mean a residential property rented out for payment for less than 28 consecutive days. All short-term rental operators are required to register with the city of Toronto and remit a 4% Municipal Accommodation Tax (MAT) on all rental properties. To register for the license, the host must prove that the property is their principal residence.

What is a primary residence? Good question!

According to the Toronto city website:

  1. “You are only allowed to short-term rent your principal residence.
    1. This is the residence where you live and the address you use for bills, identification, taxes and insurance.
    2. You can only have one principal residence at a time, therefore you cannot legally run more than one short-term rental.
  2. You can be a homeowner or a renter in any housing type, for example house, apartment or condominium, etc.
    1. You should ensure that you are allowed, by your condominium or landlord, to short-term rent your residence.
  3. You can rent up to three bedrooms in your principal residence for an unlimited number of nights per year or the entire home for a maximum of 180 nights per year.
  4. Your home must be in a residential area in the city.
    1. If you are a Bed and Breakfast (B&B) operator, you can continue to operate under existing zoning permissions for “tourist homes”.
  5. You can host a short-term rental in a secondary suite or laneway suite, as long as the suite is your principal residence.
    1. A secondary suite is a self-contained and separate living accommodation where food preparation and sanitary facilities are provided for the exclusive use of the occupants. This is located within a larger house (for example, a basement apartment).
    2. A laneway suite is a self-contained residential unit located on the same lot as a larger house, and generally located in the rear yard. A laneway suite must be next to a public laneway.
    3. If you reside in the main portion of the house, you are not permitted to separately short-term rent the secondary suite or laneway suite.”

Who is allowed to register their property?

According to the Toronto city website:

  1. “To short-term rent, you must be:
    1. 18 years or older
    2. using your principal residence in Toronto
    3. able to demonstrate that you live at your principal residence

Homeowners

  1. As a homeowner you can short-term rent your principal residence only. This is the home where you live and the address you use for bills, identification, taxes, and insurance.
  2. If you have an insurance policy, you should understand the implication of operating a short-term rental. You may wish to ask your insurance company about the appropriate insurance product for short-term rentals.

Tenants

  1. As a tenant you can short-term rent your home as long as it is your principal residence.
  2. You should be aware of your responsibilities under the Residential Tenancies Act and your lease agreement with your landlord.

Multiple individuals living in the same home

  1. If you are living in the same home with other individuals (for example, as two tenants), then each one of you may register the same home as your short-term rental, as long as the home is your principal residence.
  2. As short-term rental operators, each one of you is responsible for ensuring that your entire home is rented to a maximum of 180 nights per year.
  3. If your entire home is rented out for more than 180 nights per year, then each operator at your home may be charged with an offence under the bylaw.”

How do I need to register?

The city of Toronto accepts online registrations. You can register online on the official website: https://secure.toronto.ca/webapps/short-term-rental/registration/

In order to complete the registration, you will need the following:

  1. “government-issued identification (ID) which include your address
    1. only Ontario Driver’s Licence or Ontario Photo Card Opens in new window are accepted (more information below)
  2. contact information and address
    1. your name and address on the registration must match your government-issued ID
  3. details of your short-term rental, including description of the type of building your rental is located in and which parts of the home you will short-term rent
  4. name and telephone number of an alternate (emergency) contact who will be available 24 hours a day during rental periods.”

Please keep in mind that Airbnb hosts must provide this registration number when first registering their property on the Airbnb website. Before StayPro starts managing your Airbnb property, you are expected to have submitted your registration number to Airbnb already. For more information, you can check the Toronto - Airbnb Help Center.

Before you start, StayPro will also need your name and telephone number and a diagram of exits from the building in case of emergencies. You may update this information on your user account.

How do I pay the registration fee?

According to the Toronto city website:

  1. “You are required to pay a registration fee of $50 every year, which is subject to an annual increase. This is a non-refundable registration fee and is valid for one year from the time your registration has been approved. Fees can be paid using only a valid credit card.
  2. Debit cards, Visa Debit or Visa gift cards are not accepted by the online registration system. The registration fee is subject to an annual increase.
  3. Please note that you are not eligible to register a short-term rental if your registration was denied or revoked in the last 12 months.”

Since we do not update the article in real time, please make sure that the information is still applicable. StayPro advises that you do your own research as this article is not comprehensive, and does not constitute legal or tax advice.

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