Toronto’s Short-Term Rental Regulations Are Now In Effect

Condominium corporations that are trying to control the extent of short-term leasing in their buildings should be familiar with the new regulations in effect for the City of Toronto.

It is important that corporations are aware that only primary residences can be used for short-term rentals. If someone is renting out a unit in the corporation on a short-term basis, then the corporation will want evidence that the unit is registered with the City of Toronto and confirm that the individual leasing the unit, for short-term use, resides in the unit.

Here are the Toronto Regulations dealing with short-term rentals in the City of Toronto.

Chapter 547 of the Toronto Municipal Code (the "Regulation"), which regulates the licensing and registration of short-term rentals in the City of Toronto, is in effect as of September 10, 2020. The Regulation can be read in its entirety https://www.toronto.ca/legdocs/municode/toronto-code-547.pdf.

The City of Toronto's Short-Term Rental Registration system is now open as well. The Short-Term Rental Registration system can be accessed here.

Who Must Register and When?

▪ Short-term rental operators must register with the City in order to operate in Toronto.

▪ 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.

▪ To continue short-term renting, current operators must be registered by December 31, 2020.

▪ Future operators will be able to register on an ongoing basis but must do so before short-term renting their homes.

Key Points in the Regulations:

▪ Individuals are only allowed to short-term rent their principal residence.

▪ This is the residence where an individual lives and the address they use for bills, identification, taxes, and insurance.

▪ Individuals can only have one (1) principal residence at a time, therefore individuals cannot legally run more than one (1) short-term rental.

▪ Pursuant to the Regulation, subject to any restrictions in a condominium's governing documents, condominium units may be used to short-term.

▪ Individuals can rent up to three (3) bedrooms in their principal residence for an unlimited number of nights per year, or the entire home for a maximum of 180 nights per year.

▪ The home being used to short-term rent must be in a residential area in the city.

Residents can contact 311 to report issues related to short-term rentals, such as noise, waste, and concerns that people are renting homes that are not their principal residence.