Toronto Short-term Rental Regulations 2025

Toronto is known for its competitive short-term rental market. As one of the most popular tourist destinations in Canada, many homeowners recognize the earnings potential of renting on short-term rental channels, like Airbnb, which will ensure you far outperform regular long-term renting.

This begs the question: how do you become an Airbnb host in 2025?

StayPro is an experienced Airbnb management company based in Toronto that has been navigating this market for years. As a StayPro rental advisor, I stay well-informed on any news and changes that affect short-term rentals in any capacity. To help you out, I have compiled the answers to your frequently asked questions.

Do I need a permit?

Short answer: yes! If you want to rent to a guest for 27 days or less, it is essential to get a permit. In fact, due to the city of Toronto’s relationship with platforms like Airbnb, even publishing a listing is impossible without a valid permit.  

Is requiring a permit a bad sign for the Toronto market?

No! Toronto has had mandatory permits for many years now, during which the short-term market has continued to flourish. While it can be cumbersome to go through the process of obtaining a permit, it does eliminate a lot of competition. In an oversaturated market, having a permit will actually help law-abiding hosts.

Who is allowed to register their property?

According to the Toronto city website:

• “To short-term rent, you must be:

  • 18 years or older

  • using your principal residence in Toronto

  • able to demonstrate that you live at your principal residence

Homeowners

• 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.

• 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

• As a tenant you can short-term rent your home as long as it is your principal residence.

• 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

• 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.

• 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.

• 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.”

Is this information up-to-date? Will it change soon?

These outlined regulations are fairly new, so it is unlikely they will change anytime soon, because they are quite new. In October 2023, I attended a bylaw meeting during which the city and various Airbnb hosts discussed many of the changes currently listed here. To learn more about this meeting, please read this blogpost on the topic. Although future changes are possible, it’s expected that the current regulations will remain in effect for the foreseeable future.

How do I register?

The permit application process is easy to do online through the city of Toronto’s official website.

Before you begin, please note that you will need the following:

• Government-issued identification (ID) which clearly shows your Airbnb property as your primary residence

  • Please note that only a Ontario Driver’s Licence or Ontario Photo Card are accepted (more information below)

• 2 Additional pieces of documentation

  • As of September 30, 2024, you will need 2 more documents proving your primary residence.

  • Examples: 

    • utility bills (i.e. internet, phone, hydro)

    • purchasing and rental agreements

    • vehicle insurance and/or registration

    • notice of assessments

    • related employment and/or financial statements

• Contact information and address

  • Please note that your name and address on the registration must match your government-issued ID and it must match the name on your property ownership documents.

• 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

• 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?

You will pay the registration fee as the last part of your application process. According to the Toronto city website, starting January 1, 2025, the registration fee will increase to $375.00. It’s important to note that this amount is non-refundable. No matter if your application is approved or denied, this amount must be paid to the city. When inputting your payment method, please note that Debit cards, Visa Debit or Visa gift cards are not accepted by the online registration system. 

What if my application is revoked?

If the application is approved, you will be able to rent your property as a short-term rental for 1 year, with a simple renewal process after that. If revoked, you will not be able to re-submit the application for 12 months. For this reason, StayPro cautions all hopeful hosts to be careful when inputting their information and/or considering professional management which will guide you through the process.

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.