Local city has its own rules to regulate the short term rental
Brampton – updated Sept, 2021
The City of Brampton has updated its short-term rental by-law in order to try to address housing shortages in the city.
As of September 30, 2021, the new Short-Term Rental Registration Licensing By-Law came into effect. All new and existing short-term rental operators will require a license to operate legally.
According to the city’s website, those looking to rent out spaces in their homes on a short-term basis now require a special license issued by the city to do so, and investment properties for short-term rentals are no longer permitted.
The city defines short-term rentals (STRs) as: “When all or part of a dwelling unit is used to provide sleeping accommodations for any rental period that is less than 30 consecutive days in exchange for payment.”
The by-law applies to those renting out rooms, condos or homes through online sharing platforms like Airbnb, Vrbo and FlipKey.
What you need to know about the updated by-law:
- Short-term rentals are permitted in the principal residence only for a maximum of 180 days per calendar year
- No more than three (3) bedrooms are to be rented individually
- The property owner must have proof of Commercial General Liability Insurance
- Annual license renewal is required
- Any STR host who contravenes the provisions of the by-law is guilty of an offence and liable to fines and other penalties.
Toronto -updated September, 2020
Short-term rental operators in Toronto who rent out properties for periods of less than 28 days will have to formally register with the City of Toronto starting September 10, 2020, to keep operating in the city. The new online registration system is part of a broader effort to better regulate short-term rentals across the city, and more details will be announced by the city prior to the system becoming active.
People Currently Renting Their Home
Those who are currently renting their home on a short-term basis, or planning to do so, must be registered by December 31, 2020. After this date, all new operators will be able to register on an ongoing basis and must register prior to short-term renting their homes.
Details
People can short-term rent their homes in Toronto only if they are a registered operator.
A valid City-issued registration number must be included in all advertisements and listings.
Registered short-term rental operators will need to start collecting and remitting the four per cent Municipal Accommodation Tax (MAT) on a quarterly basis starting January 1, 2021. More information on how to collect and make the MAT payments will be provided in fall 2020.
The City will also require short-term rental companies to obtain a licence from the City in order to carry on business in Toronto.
Zoning Bylaws
In Toronto, short-term rentals are regulated by the City’s zoning bylaws and the Licensing and Registration of Short-Term Rentals bylaw:
- City bylaws permit short-term rentals across Toronto in all housing types in residential zones and the residential components of mixed-use zones.
- People can short-term rent their principal residence only. This is the residence where they live and where the address is used for bills, identification, taxes or insurance.
- Both homeowners and renters in any housing type (for example, house, apartment, or condominium) are allowed to short-term rent their home.
- People can rent up to three bedrooms in their principal residence for an unlimited number of nights per year or their entire home for a maximum of 180 nights per year.
- People can host a short-term rental in a secondary suite (for example, a basement apartment) or a laneway suite, as long as the suite is their principal residence.
- The City continues to respond to short-term rental issues on a complaint basis. Residents can contact 311 to report issues related to short-term rentals, such as noise, waste, and concerns if others are renting homes that are not their principal residence.