Toronto, Canada

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City Ordinance for Short Term Rentals in Toronto

Navigating the rules around short term and vacation rentals in Toronto

Summary of City: Toronto is at the beginning of its regulatory journey with short-term rentals. Currently, in the city, short-term rentals are unregulated, operating free from zoning, licensing and taxation constraints. The number of units available has grown exponentially, creating a shortage of affordable permanent housing units. In addition, there are a growing number of concerns, particularly in downtown Toronto, surrounding noise, safety, the availability of affordable housing, the impact on the hospitality industry, and on municipal and provincial tax revenues. In order to address these issues, and backed by the hotel workers union, the city has proposed new regulations, which would mandate that hosts can run a short-term rental only in their principal home.

Main Takeaways:

  • Short-term rentals are currently unregulated, but new regulation is in the works.
  • The new regulation would limit short-term rentals to the principal homes of hosts.
  • Another part of the regulation is that hosts as well as short-term rental companies would have to register with the city.

The City of Toronto is considering its first short-term regulations to deal with the decrease of affordable housing and the increase of complaints of noise and other disturbances, especially in the downtown area. In fact, rental prices in Toronto have increased approximately 30 percent in the last five years, and part of this is due to the dwindling number of units available for long-term rent in Toronto. Vacancy rates for condo-apartment rentals are at one percent — the lowest they’ve been in seven years. The regulations would require that hosts register with the city and would bar any short-term rentals that aren’t located in primary residences; the proposed regulations don’t require any verification of primary residence, only a “self-declaration.” According to the City, the new regulations would remove some 3,200 short term rental units.

The group FairBnB coalition, created by Hotel Union workers, are in favor in regulating the industry and say they are pleased with the rules, but believe they could go farther by including fines and more verification tools. Those who oppose the regulations include those who operate spin-off businesses, such as those who manage short-term rentals for hosts are too busy to do so themselves and those who store luggage before and after visitors use short-term rentals

Is my STR legal?

Currently, short-term rentals are unregulated in the City of Toronto

    • Click here to view our nation-wide regulation map that lays out all of the legislation in each major city and the procedures to take to ensure your STR is legal.


City of Toronto City Council Members:


Esienburg, R. (2017, July 20). Canada: Pumping the Breaks: New Regulations Aim to Limit the Impact of Short-Term Rentals in Toronto. Retrieved from`ogether+with+ride+sharing+has+been+the+explosion+in+vacation+rental+by+owner+services+led+most+prominently+in+Canada+by+Airbnb


Jeffords, S. (2017, June 18). Toronto’s AirBnB regulations should be stricter: Coalition.  Retrieved from

Martin, S. (2017, June 18). Proposed short-term rental rules could be bad for spin-off businesses, entrepreneurs warn. Retrieved from

Subramanian, V. (2017, June 12). Toronto Vs. Airbnb. Retrieved from