On December 7, 2017 Toronto City Council passed new by-laws to regulate the short-term accommodation rental industry, allowing rentals only in principal residences. Secondary suites will not be permitted. This means that the commercial side of Airbnb’s hosts, running multiple suites and homes will no longer be allowed to operate.

“The new by-laws are a significant step forward for Toronto and sets a framework for other municipalities to follow,” said Terry Mundell, President & CEO of the Greater Toronto Hotel Association. “Limiting short-term rentals to principal residences with the enforcement mechanisms will eliminate the commercialization of the home sharing economy, a major win for the Toronto’s hotel industry.”

All short-term rental operators must now register and become licensed with the City of Toronto on an annual basis in order to rent or advertise in any Airbnb or similar short-term rental platform. Operators are also required to post the registration number on any advertisement, invoice or contract related to the short-term rental. Furthermore, a cap of 180 nights per calendar year will apply to all short-term accommodation rentals.

Platforms, such as Airbnb will be licensed by the city and held to strict enforcement regimes with fines up to $100,000 for non-compliance. The platform will be responsible for removing shortterm rental listings that do not comply with the new rules. The new by-laws will come into effect June 1, 2018.

Toronto City Council will be considering the level of taxation that will be applied to the home sharing economy at Toronto’s Executive Committee and City Council Meeting on January of 2018.

The Greater Toronto Hotel Association (GTHA) together with the Ontario Restaurant Hotel & Motel Association’s (ORHMA) have actively participated in the consultation process with the City of Toronto on short-term accommodation rentals and will continue to advocate on behalf of our members on this important issue.

For more information, please refer to the City of Toronto’s Licensing and Registration Regulations for Short-Term Rentals.