New By Laws Toronto
The City of Toronto is proposing to implement measures that will restrict the
short-term rental market. The measures proposed by City staff include:
§ allowing short-term
rentals only in a homeowner’s primary residence, with a limit of three rooms
per dwelling unit;
§ mandatory registration
of all hosts renting their homes on a short-term basis and payment of a
registration fee between $40 and $150 per home;
§ mandatory licensing of
short-term rental companies such as Airbnb and VRBO, and payment of a license
fee between $5000 and $20,000, plus an additional fee per night booked; and
§ implementation of a
hotel tax and a short-term rental tax, if the necessary provincial legislative
approvals can be obtained.
This means that hosts would be
allowed to rent their properties on a short-term basis only if they are renting
extra bedrooms in their primary homes or if they are renting their entire
primary residence while away. These proposed measures would not stop individual
condominium corporations from banning short-term rentals altogether.
The proposed recommendations follow a report released in October of 2016, by the
Executive Director, Municipal Licensing and Standards and the City’s Chief
Planner outlining a number of concerns about short-term rentals. That report
indicated that:
§ Short-term rentals that
occur in non-primary residences, where the property owner is not present, pose
the greatest risk of nuisance issues, such as noise, and safety concerns for
neighbours in the community;
§ Short-term rentals are
impacting the affordability and availability of housing units for long-term
residents, causing a reduction in the supply of units available for long-term
rental;
§ Short-term rental hosts
pay property taxes at the lower residential rate, even though they may be
renting their properties on a full-time commercial basis;
Short-term rentals have
resulted in an uneven playing field for commercial tourism operators such as
hotels and motels, who pay taxes at a higher rate and whose properties are
subject to more onerous fire, safety and other regulations.
That report was followed by
public consultations with and written submissions from various stakeholders
including short-term rental platforms, neighbourhood associations, condominium
industry associations, tenant advocates, hotel and hospitality representatives,
and various provincial government ministries.
After the proposed measures are
discussed by the Mayor’s Executive Committee, City staff will submit final
recommendations in the fall of 2017 for approval by City Council.
These proposed measures will no doubt be well-received by many
condominium corporations, particularly those corporations that do not have any
restrictions on short-term rentals in their declaration or rules.
