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How New Rules for Toronto’s Short Term Rental Scene Will Impact Landlords

Posted by Deanna Allegranza on November 25, 2019
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Are big changes coming to Toronto’s Airbnb scene?  According to the City of Toronto, we’ll know more in December. 

New Ruling

On November 18th, LPAT upheld the decision by City Council to regulate short-term rentals in Toronto. 

Who is LPAT?

The Local Planning Appeal Tribunal (LPAT) is an adjudicative tribunal that hears cases and makes decisions on land use planning issues and other matters. 

So what exactly does this mean?  Basically, the City will have the right to regulate short-term rentals across the city. 

Key Points of the New Rules

Short-term rentals are permitted across the city in all housing types.  People can host short-term rentals in their principal residence only, and both homeowners and tenants can participate.  People can rent up to three bedrooms or an entire residence, and people who live in secondary suites can also participate in providing it is their principal residence.  An entire home can be rented for short term rental if the owner or tenant is away— to a maximum of 180 nights per year.  People who rent their homes short term must register with the City and pay $50. 

Companies such as Airbnb must pay a one-time license application fee of $5,000 plus $1 for each night booked through the company.  People doing short-term rentals must pay a 4% Municipal Accommodation Tax (MAT) on all rentals less than 28 consecutive days.

The City has not announced how it intends to enforce the new rules, but we’ll stay tuned for more information. 

The jury is still out on whether this will help with the issue of affordability, and whether it will increase the supply of Toronto rentals.  I’m mixed on whether this will have a measurable impact on whether Landlords return their secondary suites to the long-term rental market.  I guess only time will tell!

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