Regulating and Enforcing Short-Term Rentals

Over the last five years, an increasing number of properties across Toronto have been marketed as short-term rentals through online booking platforms such as Airbnb. As a result, short-term rentals have become a significant issue in Ward 15 and throughout the City, in some cases being used to host loud events which can attract unwanted behaviours that pose safety concerns in quiet, residential neighbourhoods.
 
In 2017, City Council adopted a bylaw to better regulate short-term rentals in Toronto through measures such as only permitting short-term rentals in a primary residence, and making it mandatory for short-term rental companies to obtain a license. Unfortunately, the bylaw was appealed to the Province's Local Planning Appeal Tribunal (LPAT) by a group of Airbnb landlords and 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, I've worked closely with Municipal Licensing and Standards staff, Toronto Police Services (TPS), and local residents to mitigate the impacts of problematic properties in Ward 15 neighbourhoods on a case-by-case basis.
 
Last fall, the City received notice that the LPAT dismissed the appeal. This decision was a positive outcome for Ward 15 residents as it enables the City to implement the by-law and impose regulations on short-term rental properties. While there have been delays resulting from the COVID-19 pandemic, the City has been working to implement these regulations. In September, the short-term rental registration portal officially launched in Toronto.
 
As of September 10, short-term rental operators renting their homes for less than 28 consecutive days are required to register with the City to legally operate in Toronto. This first step will enable the City to effectively regulate and administer the new rules applicable to short-term rentals.
 
Individuals who are currently renting their home on a short-term basis or planning to do so must be registered by December 31, 2020. New operators will be able to register on an ongoing basis and must register before renting their home.
 
Registered operators will be issued an identification number which must be included in all advertisements and listings. Short-term rental operators will need to start collecting and remitting the four percent Municipal Accommodation Tax (MAT) on a quarterly basis, beginning January 1, 2021. The City will also require short-term rental companies, including - Airbnb, Expedia, and Booking.com - to obtain a license to conduct business in Toronto.
 
Over the next few months, the City will educate the public on the rules, encourage operators to register, and work with companies to ensure compliance. In the meantime, staff will continue to respond to short-term rental issues on a complaint-basis. Torontonians are encouraged to contact 311 to report problems related to short-term rentals, such as excessive noise and waste disposal issues.
 
If you are interested in receiving updates about the short-term rental registry and licensing program, you can sign up on the City’s website.