Plans to regulate the short-term rental market in Toronto will continue after the rejection of an appeal.
It means that short-term rentals through platforms such as Airbnb will be allowed in all types of homes throughout the city, but only in the main residences of the owners.
Secondary suites can also be used for short-term rentals, but only where it is a primary residence.
Companies like Airbnb must pay $ 5,000 per year to the City plus $ 1 for each night booked through their platforms.
Those who make short-term rentals must also pay a new 4% municipal accommodation tax (MAT) on all rentals that have less than 28 consecutive days.
“This is good news for Toronto residents and a step in the right direction when it comes to regulating short-term rentals and keeping our neighborhoods habitable,” said Mayor John Tory. “When we passed these regulations in 2017, we strive to strike a balance between allowing people to earn additional income through Airbnb and others, but we also wanted to make sure that this did not have the effect of removing potential units from the rental market.”
The mayor added that he believes the policy achieves the right balance by falling more on the side of the availability of affordable rental housing and maintaining reasonable peace and quiet in Toronto’s neighborhoods and buildings.
The city of Toronto approved the regulation of short-term housing rents in December 2017 and January 2018; but an appeal followed before the Local Planning Court of Appeals.
On November 18, 2019, the Court dismissed the appeal, allowing the City to continue with its plan. More details are expected in December.
If you are thinking of buying an investment property and venturing into the world of Airbnb but you have doubts about the laws and your opportunities, contact me and I will advise you on the subject.