An Enforceable Strategy to Regulate Short-Term Rentals in Toronto

Across Toronto, an increasing number of properties are being marketed as short-term rentals through online booking platforms such as Airbnb. Short-term rentals have become a significant issue in Ward 15 and throughout the City, where bookings are arranged completely online and visitors often do not meet their landlords face-to-face.

In some communities, short-term rental properties have been used to host loud events and can attract unwanted behaviours that pose safety concerns in quiet, residential neighbourhoods.

In 2017, City Council adopted a by-law to better regulate short-term rentals in Toronto. Unfortunately, the by-law was appealed to the Province's Local Planning Appeal Tribunal (LPAT) by a group of Airbnb landlords and thus did not immediately come into force.

In the absence of a by-law, it has been challenging to regulate short-term rentals in the City. Over the past year, Councillor Robinson has worked closely with Municipal Licensing and Standards staff, Toronto Police Services (TPS), and local residents to mitigate the impacts of any problematic properties in Ward 15 neighbourhoods.

This month, the City received notice that the appeal was dismissed by the LPAT. This is a positive outcome for Ward 15 residents as it enables the City to officially implement a by-law that will regulate short-term rental properties.

The new by-law will only permit short-term rentals in a primary residence. All short-term rental companies will be required to obtain a license, and individual operators will have to register with the City and pay a Municipal Accommodation Tax (MAT) of four percent. Contravention of the by-law can result in fines of up to $100,000.

More information on implementation, timelines, and logistics will be available in December.

If you are interested in receiving updates about the short-term rental registry and licensing program, you can sign up through the City's webpage for Short-Term Rentals.