American tourist hubs have led the charge in placing parameters on the ability of users to advertise short-term rentals on sites like Airbnb. In 2010, New York State amended its Multiple Dwelling taw (MDL) to make it illegal to rent out an entire apartment (unhosted rentals) on Alrbnb for less than thirty days. This law was passed, among other reasons, to address concerns that Airbnb listings had the effect of limiting the availability of long-term rentals. It is also illegal in New York to advertise a short-term rental prohibited by the MDL, with violators facing penalties ranging from 51,000 to $7,500. In San Francisco, strict guidelines on Airbnb hosts include the requirement that hosts live in the unit for at least 275 days out of the year; unhosted units cannot be rented out for more than ninety days out of a year. Importantly, short-term rental hosts are required to obtain a permit, a business license, and pay bi-annual fees. Hosts arc also required to purchase liability insurance for their hosting activities and charge renters a 14% 'Transient Occupancy 'Fax, payable to the city. 

Canada Following Suit?

Municipal governments across Canada are feeling the pressure to address the alleged negative impact of short-term rentals via platforms like Airbnb. For example, the City of Vancouver has proposed licensing short -tenn rentals of less than thirty days, but only for houses declared as primary residences. Only homeowners that dwell in the home can operate a short-term rental arrangement. Plans have moved forward to bring this regulation into effect in 2017.

On April IS, 2016, the Province of Quebec became the first Canadian jurisdiction to officially regulate short-/term rentals. Anyone renting out a property for no more than 31 days on a regular basis must secure a license similar to a hotel and charge renters up to 3.5% in taxes. The Quebec short-term rental regulation excludes from licensing requirements properties rented on an 'occasional basis" but floes not define what the term means. 7 Presumably, this was done to avoid licensing for owners who, for example. rent out their cottage for a week in the summer. Violators of the law can be fined anywhere from $500 to 850,000.

Toronto Regulation 

Toronto, the most populous Canadian city and key tourism destination, has remained relatively silent on regulation initiatives until recently. Toronto's short-term rental operators have been thriving in a regulatory grey zone, with short-term rentals lacking a definition. The landlord-tenant relationship in the Province of Ontario is regulated by the Residential Tenancies Act (http://www.entariocallaws/stattne/06r17)(RTA). Traditional businesses that provide short-term rentals are also regulated by multiple provincial statutes. The City of Toronto (the City) does not regulate or register any such commercial properties. I lowever, the kinds of uses of Toronto properties are regulated by a lengthy City of Toronto Zoning By-law, known as Zoning Ry-taw 569-2013 (http://www1.tatuntosa/wps/poral/contentonlyhtenextent..2a8a036318061410Vgn14.311(000071660f89RCRD). 

Although Zoning By-Law 569-2013 does not cover short-term rentals, it defines a 'tourist borne' as a dwelling that a) is the principal residence of the tourist home operator; b) caters to the needs of the travelling public by the furnishing of sleeping accommodation; and c) may include the provision of meals (Chapter 800, 860). A tourist home is generally allowed in most residential areas of Toronto, provided that it is in a detached house, a semi-detached house, or a townhouse where vehicle access does not rely on a mutual driveway. Notably, the definition of a 'tourist home' does not include it ions where a unit owner does not 'It i Such kinds of short-term rentals could fall under the definition 'hotel." Hotels are only permitted in employment-industrial zones