Changes coming to short-term rental operations like Air BnB

The following rules are coming into effect beginning September 10, 2020

Mandatory Registration for Toronto Short-Term Rental Units

Short-term rental operators in Toronto who rent out properties for periods of less than 28 days will have to formally register with the City of Toronto starting September 10, 2020.

People Currently Renting Their Home

Those who are currently renting or planning to rent their home on a short-term basis must be registered by December 31, 2020.


  • People can short-term rent their homes in Toronto only if they are a registered operator.
  • A valid City-issued registration number must be included in all advertisements and listings.
  • Registered short-term rental operators will need to start collecting and remitting the 4% Municipal Accommodation Tax (MAT) on a quarterly basis starting January 1, 2021.
  • The City will also require short-term rental companies to obtain a licence from the City in order to carry on business in Toronto.

Zoning Bylaws

  • City bylaws permit short-term rentals across Toronto in all housing types in residential zones and the residential components of mixed-use zones.
  • People can short-term rent their principal residence only. This is the residence where they live and where the address is used for bills, identification, taxes or insurance.
  • Both homeowners and renters in any housing type (for example, house, apartment, or condominium) are allowed to short-term rent their home.
  • People can rent up to three bedrooms in their principal residence for an unlimited number of nights per year or their entire home for a maximum of 180 nights per year.
  • People can host a short-term rental in a secondary suite (for example, a basement apartment) or a laneway suite, as long as the suite is their principal residence.
  • The City continues to respond to short-term rental issues on a complaint basis. Residents can contact 311 to report issues related to short-term rentals, such as noise, waste, and concerns if others are renting homes that are not their principal residence.

Read full City of Toronto Press Release here.

With Toronto launching the regulations, the rest of the GTA can also expect changes coming to short term rentals in their markets soon.

Our Two Cents as a Realtor Team active in the Square One Condo Market

The changes coming to short term rentals is overall a positive move aimed at regulating this growing market.

We feel that Air BnB has its own pros and cons.

Many investors who are looking to buy an apartment unit to ultimately use it to generate income, prefer condominium buildings where Air BnB is allowed. Most condominium corporations these days do not allow Air BnB or short term rentals. However, there are a handful of condominium buildings in the GTA, particularly in Downtown Mississauga where there are three or four buildings which allow condo unit owners to run an AirBnB operation. AirBnB and short-term rentals numbers are not as high in Mississauga as compared to Toronto.

One of the major issues with Air BnB buildings is wear and tear due to guest traffic

This is because more people are coming in and out of these buildings more than they would in a standard condominium building . This can result in fast wear and tear of not only the suites, but also the common elements like elevators, lobby, flooring etc. Air BnB sort of companies are well organized and screen guests before providing the accommodation. In general things go smooth and it is a safe operation which is done good for itself overall.

Another issue is potential illegal activity threat

There are also instances where suites like Air BnB or other short-term rentals are used for illegal activities.

So are Buildings that allow short-term rentals a “no go” for investors?

Basically, there are two type of investor clients. Most of our investors want to shy away from short-term or Air BnB kind of buildings. But there are a handful of investors who would like to invest in such buildings where they can put up their units as an Air BnB accommodation. It really comes down to the level of comfort for each investor.

If you are looking to invest in a condo in Mississauga or elsewhere in the GTA, contact us to discuss various builder new & resale options. We will do the math for you & discuss it with you to show you what makes sense, based on price, appreciation, rental potential & your expected return on investment (ROI). Whether you are an active or a passive landlord investor, we have you covered.

We have been successfully doing this for our investor clients for more than 17 years. While do not get involved in helping clients run a short-term rental, but help you secure good tenants with a regular lease term of 1-2 years. We even offer our a la Carte Property Management Service exclusively for our own investor clients. When it comes to investing in real estate, no question is big or small. And there is no better time than now to invest!

So pick up your phone or fill out the form below to Schedule Your one-on-one Investor Buyer Session with us.

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