A short-term rental company is any company facilitating or brokering short-term rental reservations online and receiving payment for this service (such as Airbnb and Booking.com). All short-term rental companies are required to obtain a licence before they can operate in Toronto.
Companies facilitating or brokering short-term rental reservations online and receiving payment for this service need licences to operate in Toronto.
Sole-proprietors, partnerships, or corporations can also apply for a short-term rental business licence. Regardless of size, all companies must be licensed and comply with the fees and data-gathering requirements set out in the bylaw.
A licence is not required if the company does not facilitate the reservations of short-term rentals. For example, if a small property management company is collecting fees on behalf of short-term rental operators but not facilitating reservations, the company does not require a licence.
In order to be licensed, a short-term rental company must:
Download the application for short-term rental business licence to view the application submission checklist and list of required documents.
All applicants must provide the following documents and completed forms:
Note: First and last names must match on all identification provided to the City. The City does not accept Health Cards as a form of identification.
In addition to the documents and forms listed above, short-term rental companies must provide the following information:
*Note: Companies based in another country still need to provide an Ontario address as part of the licensing process. This is because the City needs to ensure that there is an address of record in case any legal documents or letters need to be served.
Applicants are required to pay a one-time licence application fee of $5,321.85 and an ongoing fee of $1.06 for every short-term rental night booked through the company.
In addition to the documents, forms and information needed from all applicants, sole-proprietor and partnerships need to submit the following:
In addition to the documents, forms and information needed from all applicants, corporations need to submit the following:
If the president, director or officer of the corporation is not able to apply, a designate may apply on their behalf. In addition to the items identified above, the delegate must also provide:
Copies of government issued ID for each person listed on Form 2 do not need to be notarized.
Short-term rental companies are required to send records to the City on a regular basis, using a secure, electronic transfer method that is approved by Municipal Licensing and Standards.
The Data Sharing Agreement (DSA) describes the types of data and personal information that may be exchanged between a short-term rental company and the City under the bylaws. The agreement also sets out the requirements regarding the transfer, storage, and protection of that data.
Download a summary of the DSA to view a general outline of the City’s agreement with short-term rental companies. This summary is just for information and does not form part of the agreement. It is the responsibility of the companies to review the full agreement. Download a copy of the full DSA.
For a copy of the questionnaire, please contact email@example.com. When the completed security questionnaire is received, it is submitted to the City’s information and security office for review and follow-up. If complete information is provided, the review should be finalized within two to three weeks. The City will also work with the company to complete a data exchange test and ensure that all processes conform with the DSA.
Companies need to share and upload data on a monthly basis so that the City can review the data. The City will then invoice the company on a quarterly basis for the ongoing fee of $1.06 for every short-term rental night booked through the company.
Currently data is transferred to the City using Comma-Separated Values (CSV) files and uploaded to a City server. In the future, data transfer will move to an Application Programming Interface (API).
Please review the information in the sections above on who can apply, regulations for companies, the application requirements and the Data Sharing Agreement.
Applicants can download the application for short-term rental business licence and email firstname.lastname@example.org to receive instructions on how to submit via secure file transfer.
Applicants are required to pay a one-time licence application fee of $5,321.85 and an ongoing fee of $1.06 for every short-term rental night booked through the company. The application fee is subject to an annual increase and is non-refundable.
Unfortunately, fees cannot be reduced as the fee is set out in the bylaw.
Once a complete application is received, staff will review the forms and documents and send an invoice number for the application fee. Additional information about the Data Sharing Agreement will also be shared.
Registered short-term rental operators are required to collect and remit a four per cent (4%) Municipal Accommodation Tax (MAT) on a quarterly basis.
Short-term rental companies can sign a Voluntary Collection Agreement with the City of Toronto to collect and remit the MAT on behalf of operators. Operators using these companies to list short-term rentals will still need to file MAT reports online.
If short-term rental companies choose not to sign a Voluntary Collection Agreement with the City, then operators using these companies to list short-term rentals, will need to file their MAT report online and collect and remit the MAT themselves.
Learn more about how operators need to collect, file and pay the MAT themselves or via short-term rental companies.
Residents can contact 311 to submit a complaint about a short-term rental company. If there is a complaint or information about a possible violation, Bylaw Enforcement Officers investigate, educate and/or take enforcement actions.
The goal is to resolve issues and ensure that short-term rental companies are following the bylaw. Each issue is addressed on case-by-case basis to make sure reasonable, fair and appropriate actions are taken. For example, in some cases the issue may be resolved through education. In other cases, further enforcement action is required.
If a short-term rental company does not comply with the bylaw, they are guilty of an offence. If they are issued a ticket and convicted, they may have to pay a fine for the offence set out in the table below.
If the company is issued a summons to court and convicted, they may have to pay a fine up to $100,000 or a daily fine of up to $10,000 for each day the violation continues. In addition they may have to pay a special fine for economic gains from the bylaw violation. If it is a corporation, every director or officer may have to pay a fine of no more than $100,000.
|Failing to licence a short-term rental company||1000|
|Advertising, facilitating or brokering an unregistered short-term rental||1000|
|Failing to remove a listing for an unregistered short-term rental||1000|
|Failing to keep complete transaction record for 3 years||1000|
|Failing to keep record of removed short-term rental listing||1000|
|Discriminating based on enumerated ground||500|
|Refusing to serve a person accompanied by a service animal||500|
|Failing to notify the City of a change in licensing information||400|
|Failing to report non-compliance with screening criteria||300|
|Making a threat or reprisal for participation in a public process||300|
|Making a threat or reprisal against unlicensed business||300|
Short-term rental company licences must be renewed annually. The application fee of $5,321.85 is one-time and there is no yearly renewal fee.
A renewal notice, identifying any documents required to renew the licence, will be mailed to the address on file. Companies need to renew licence within a grace period of 90 days.
If a short-term rental company fails to renew its licence according to the bylaw, the licence will be cancelled, and the company will have to reapply.