Note: Changes in the short-term rental rules has come into effect on June 30. More changes will come into effect on September 30 and January 1, 2025. For more information, please visit Short-Term Rental Operators/Hosts.
If you have a complaint about a short-term rental you can submit a service request online at http://www.toronto.ca/311/, or contact 311.
In Toronto, all short-term rentals must comply with the Licensing and Registration of Short-Term Rentals Bylaw. The rules require short-term rental companies to obtain a licence and short-term rental operators to register with the City and remit a Municipal Accommodation Tax (MAT) of six percent.
Definition of short-term rental
A short-term rental is all or part of a dwelling unit rented out for less than 28 consecutive days in exchange for payment. This includes bed and breakfasts (B&Bs) but excludes hotels, motels, student residences owned or operated by publicly funded or non-profit educational institutions.. It also excludes other accommodations where there is no payment.
Short-term rental company/platform
A short-term rental company is any company facilitating or brokering short-term rental reservations online and receiving payment for this service (for example, Airbnb and Booking.com). All short-term rental companies are required to obtain a licence to operate in the City of Toronto.
Short-term rental operator/host
Short-term rental operators are people renting their homes or rooms on a short-term basis, for a period of less than 28 consecutive days. These operators need to be registered with the City of Toronto. Learn more about the rules and register online.
Summary of the regulations
You are only allowed to short-term rent your principal residence.
- This is the dwelling unit where the operator ordinarily resides and the address you use for bills, identification, taxes and insurance. For clarity, an operator’s principal residence shall not include more than one dwelling unit.
- A dwelling unit is a separate or self-contained living accommodation for a person or person living together as a single housekeeping unit in which both food preparation and sanitary facilities are provided for the exclusive use of the occupants of the until and includes a secondary suite, laneway suite, garden suite or similar accommodation.
- Only one registration will be allowed per dwelling unit.
- You can be a homeowner or a renter in any housing type, for example, house, apartment or condominium, etc.
- You must ensure that you are allowed, by your condominium or landlord, to short-term rent your residence.
- You can choose between registering as either an entire-unit short-term rental operator (i.e. short-term renting your entire home) or as a partial-unit short-term rental operator (i.e. short-term renting only rooms in your home) for the duration of your registration period.
- If you register as a partial-unit short-term rental operator (i.e. short-term renting only rooms in your home), you can only advertise and short-term rent one fewer bedrooms than the number of bedrooms available in your principal residence. Partial-unit rental operators cannot rent out the entire dwelling unit at the same time.
- An entire-unit rental is a short-term rental in which renters occupy the entire dwelling unit or all the bed-sitting rooms within a dwelling unit.
- No operator who holds a registration to operate a partial-unit rental shall advertise or rent a property as an entire-unit rental.
- No operator who holds a registration to operate an entire-unit rental shall rent a property for more than 180 nights per calendar year, regardless of whether the property is rented as an entire-unit or partial-unit rental.
- You can rent up to three bedrooms at the same time in your principal residence for an unlimited number of nights per year.
- Your home must be in a residential area in the City.
- If you are a Bed and Breakfast (B&B) operator, you can continue to operate under existing zoning permissions for "tourist homes"
- You can host a short-term rental in a secondary suite or laneway suite, as long as the suite is your principal residence.
- 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.
- If you reside in the main dwelling unit of the house, you are not permitted to separately short-term rent additional dwelling units or laneway suite.
- You need to post a physical copy of the emergency contact information and exit diagrams prominently in your rental for the duration of the guest's rental period.
- Licensed multi-tenant house operators are prohibited from applying for a short-term rental registration.
Registration requirements for short-term rental operators
Short-term rental operators (people short-term renting their homes) are required to register with the City of Toronto. Registration and payment for short-term rentals need to be completed online.
- You will need to post your City-issued registration number in all advertisements.
- You are required to collect and remit the six percent Municipal Accommodation Tax (MAT) on a quarterly basis.
- Even if you did not book any short-term rentals in a given quarter, you must still file a MAT report online.
- You must include a separate amount identified as Municipal Accommodation Tax on every invoice, receipt, bill or similar document.
- You need to provide the City with information, including:
- contact information and address
- details of short-term rental
- name and telephone number of an alternate contact who will be available 24 hours a day during rental periods
- A Government-issued identification (Ontario Driver's Licence or Ontario Photo Card) is required to demonstrate that the short-term rental is your principal residence and that you are over the age of 18.
- Your name and address on the registration must match your government-issued identification.
- You will need to keep records of short-term rental activity and provide them to the City upon request.
- You will be asked to submit, upon request, at least two documents in additional to your government-issued identification to provide additional evidence of principal residence.
- You may be asked to attend an in-person interview with the City to present information or documents that may be required to evaluate your eligibility to be issued a short-term rental registration.
- The City will have the authority to conduct annual inspections of all registered short-term rentals.
- Your operator registration will be tied to your principal residence address. When a registration is revoked, you will not be able to apply for a new registration for one year and no other person will be able to apply for a registration related to your address for one year.
- A person shall not be entitled to apply for or hold a registration, and Municipal Licensing and Standards shall refuse to issue or renew a registration where, in the year prior to the date of the application, a registration related to the dwelling unit for which the person seeks a registration was cancelled or revoked.
Learn more about the rules, how to register online and registration fees.
Registration renewal requirements for short-term rental operators
Your registration is valid for one year from when your application is approved. Please renew every year on that same date or up to six (6) days in advance. A notice of renewal along with instructions will be emailed to you before your registration renewal date.
To continue short-term renting your home in Toronto, you must renew your registration online and pay a renewal fee using a credit card.
Learn more about how to renew your registration online.
Licensing requirements for short-term rental companies
Short-term rental companies (such as Airbnb and Booking.com) are required to be licensed by the City of Toronto.
- Licensees are required to ensure that all listings have valid registration numbers.
- Upon licensing, short-term rental companies need to provide a process for removal of listings that do not have valid registration numbers, and a procedure for dealing with problematic operators and responding to complaints.
- Short-term rental companies are required to keep records of short-term rental activity for a minimum of three years and provide them to the City as requested.
Learn more about the rules and how to apply for a licence.
Filing and paying the Municipal Accommodation Tax (MAT)
Registered short-term rental operators must file a Municipal Accommodation TAX (MAT) report, even if the MAT as collected by short-term rental company or if not tax was collected. Operators can file a new report or replace a previous report, if adjustments are needed.
The MAT payment is due on a quarterly basis, within 30 days of the end of each quarter. You must file a MAT report online for each reporting period, even if you did not rent out your short-term rental or if you opted to have your short-term rental company collect and remit the MAT on your behalf
It is your responsibility to ensure that the correct amount of MAT is remitted to the City. The City may revoke your short-term rental registration or deny registration renewal if you fail to file and remit the MAT.
Learn more about how to file your MAT report online and remit your MAT through your financial institution.
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