Overview
Toronto City Council has approved significant updates to the short-term rental bylaw, set to roll out in three phases starting June 30, 2024. These changes aim to improve regulatory clarity, strengthen enforcement, and enhance overall compliance. In-depth articles covering various aspects of the updates will be released throughout the month.

1. Changes Effective June 30, 2024

• Revised Definitions: Key terms such as “short-term rental,” “principal residence,” and “dwelling unit” have been updated for clarity, making it easier for operators to understand and comply with the regulations.
• Emergency Contact and Exit Information: Operators are now required to post a physical copy of emergency contact details and exit diagrams prominently in the rental property for the duration of the guest’s stay.
• Registration Revocation: The registration revocation process has been expedited from 40 days to 10 days. An appeals process remains in place for operators to contest revocations with supporting evidence.
• Restrictions on Multi-Tenant Houses: Operators of licensed multi-tenant houses are now prohibited from applying for a short-term rental registration.

2. Changes Effective September 30, 2024

• Documentation Requirements: Operators will need to provide at least two additional documents, beyond government-issued ID, to verify their principal residence. Acceptable documents include utility bills, rental agreements, and vehicle registrations.
• In-Person Interviews: The City may require operators to attend in-person interviews to verify their eligibility for short-term rental registration.
• Annual Inspections: The City will conduct annual inspections of all registered short-term rentals to ensure compliance with the bylaw.
• Address-Based Registration: Registrations will be tied to the operator’s principal residence. If a registration is revoked, the operator cannot reapply for a new registration for one year, nor can anyone else apply for a registration at that address during this period.
• Single Registration Per Dwelling Unit: Only one short-term rental registration will be permitted per dwelling unit.

3. Changes Effective January 1, 2025

• Increased Registration Fee: The registration and renewal fee will increase to $375. This fee is applicable to new registrations and renewals from January 1, 2025, onward.
• Rental Type Selection: Operators must choose to register as either an entire-unit rental (renting out the whole home) or a partial-unit rental (renting out individual rooms). Partial-unit rental operators can only rent out one fewer bedroom than available and cannot simultaneously rent out the entire dwelling.

4. Definitions of Areas of Principal Residence

• Duplex, Triplex, or Fourplex: These are multi-unit buildings where you can only short-term rent the unit you reside in, not the other units.
• Secondary Suite: A self-contained unit within a larger house, like a basement apartment. It can only be short-term rented if it is your principal residence and complies with zoning and building codes.
• Laneway Suite: A self-contained unit on the same lot as a larger house, located next to a public laneway. It can be short-term rented only if it is your principal residence.
• Garden Suite: A self-contained unit in the rear yard of a principal dwelling. It can be short-term rented only if it is your principal residence.
• Apartment: Units in multi-unit or mixed-use buildings. Ensure compliance with the Residential Tenancies Act and your lease agreement.
• Condominium: You can short-term rent your condo if it is your principal residence, but you must adhere to your condo’s bylaws. Property managers must notify the City of any prohibitions or limitations.
• Entire House/Unit: An entire house or unit can be rented out for up to 180 nights per year. Rooms within a house can be rented for an unlimited number of nights, with a maximum of three rooms short-term rented at the same time.
• Bed and Breakfast (B&B): Continue operating under existing zoning permissions for Tourist Homes, but must register with the City and follow short-term rental rules.
• Investment Property: Only your principal residence can be rented short-term; secondary or investment properties must be rented long-term.

5. Key Regulations to Follow

• Principal Residence Requirement: Short-term rentals are permitted only in the operator’s principal residence, defined as the address used for bills, identification, taxes, and insurance.
• Rental Limits: Operators can rent up to three bedrooms in their principal residence without restrictions on the number of rental nights per year, or rent the entire home for a maximum of 180 nights per calendar year.
• Condominium and Rental Agreement Compliance: Ensure that your condominium bylaws or rental agreements permit short-term rentals before registering.
• Secondary and Laneway Suites: Short-term rentals are allowed in secondary suites or laneway suites as long as they are the operator’s principal residence. However, if the operator resides in the main portion of the house, the secondary or laneway suite cannot be rented out separately.

6. Registration Requirements

• Eligibility Criteria: Operators must be 18 years or older and use their principal residence in Toronto. They must also be able to demonstrate that they live at this address.
• Required Documents: When registering, operators must provide a valid Ontario Driver’s Licence or Ontario Photo Card, along with contact information. Starting September 30, additional documents proving principal residence will be required.
• Registration Fee: The 2024 registration fee is $55.35, with an increase to $375 effective January 1, 2025. Payments are only accepted via credit card.

7. After Registration

• Inspections and Compliance: Beginning September 30, 2024, expect annual inspections by City staff. Ensure that all advertisements include the City-issued registration number and adhere to listing regulations.
• Revocation Process: Operators will have 10 days to respond if notified of a registration revocation. Failure to respond in time will result in immediate revocation.
• Updating Information: Notify the City within six days of any changes to your contact details, identification information, or address.

8. Renewal and Cancellation

• Renewal Process: Register annually, with the ability to renew up to six days before the renewal date. The renewal fee for 2024 is $55.35, subject to annual increases. To renew, you must have a valid registration number and updated identification.
• Cancellation: To cancel your registration, email the Short-Term Rentals team with your registration number and property details. You remain responsible for all Municipal Accommodation Tax (MAT) obligations until your registration is officially cancelled.

9. Municipal Accommodation Tax (MAT)

• Tax Obligations: Operators must collect and remit a 6% MAT on rental revenues. Reports and payments are due quarterly. Short-term rental companies may sign a Voluntary Collection Agreement with the City to handle MAT on behalf of operators. If your company does not participate, you are responsible for managing MAT payments and reports.

For any questions or additional assistance, please contact the Short-Term Rentals team at ShortTermRentals@toronto.ca or 416-395-6600, Monday to Friday, from 8:30 a.m. to 4:30 p.m. Further detailed articles will be published over the month to explore additional facets of the updated bylaw.