Inter-jurisdictional Research

In early 2018 Toronto City Council passed a comprehensive system of STR regulation including the following:

• rental of all or part of a dwelling unit for sleeping accommodations for any less than 28 consecutive days is considered short term,

• short-term rentals are permitted across the city in all housing types,

• people can host short-term rentals in their principal residence only – both homeowners and tenants can participate,

• people can rent up to three bedrooms or entire residence,

• people who live in secondary suites (basement or loft apartments and the like) can also participate, as long as the secondary suite is their principal residence,

• an entire home can be rented as a short-term rental if owner/tenant is away – to a maximum of 180 nights per year,

• The platform must pay a registration fee with the City and remit $1.00 per rental per night to the City, and

• people who rent their homes short term must register with the City and pay $50.

Shorty after the passing of the above regulations, an appeal was filed to the Local Planning Appeal Tribunal (LPAT). The appeal was brought forward by a number of individuals, as well as companies, who currently participate in the STR market as hosts. The group of appellants took issue with regulations preventing them from renting out multiple properties or self-contained suites as well as potential related changes to the zoning bylaw. The case was heard on November 18, 2019 the LPAT issued a ruling that dismissed the appeals and upheld Toronto City Council’s adopted regulatory amendments for short-term rentals. While it was thought that this ruling would set precedent and would lead to most municipalities creating similar regulatory regimes, this has not been the case.

As noted, municipalities across Ontario have implemented many different types of regulatory measures in order to best serve their communities. The below offers a brief outline of what some comparator municipalities have chosen to do in regards to regulation.

Table 1: Summary of STR Regulations Within Other Municipalities

Oakville

Short-term accommodations are permitted in most housing types A short-term accommodation host must be the principal resident (does not apply to second unit located on the same lot) One additional parking space is required A short-term accommodation operator must obtain a town business licence for $237/year Companies such as Airbnb must also be licensed with the town at a cost of $44,500 Must obtain certificate of occupancy