Photos via CP Images/Tijana Martin
The city of Toronto has the green light to go ahead with new rules limiting Airbnb and short-term rentals. On Monday, a provincial tribunal finally ruled on the matter after two years in limbo, siding with Toronto and rejecting an appeal by a group of landlords.Toronto’s rules were initially approved by city council in December 2017. Under the plan, short-term rentals are only allowed in a landlord’s principal residence for no more than 180 nights a year. Homeowners can rent a maximum of three bedrooms all year long for no more than 28 days at a time. Landlords aren’t allowed to list secondary suites or basem*nt apartments as short-term rentals at all—only the tenants who live there can rent them for 28 days or less. A spokesperson with the city said that details on implementing these rules will be available in December.This decision dragged on for so long that in January of this year, Toronto took the unprecedented step of asking Airbnb to abide by the rules voluntarily. Airbnb declined. The San Francisco-based company—worth an estimated US$38 billion—is the biggest short-term rental operator in the city. Last month, a VICE investigation uncovered a U.S.-wide scam on Airbnb and raised questions about its verification and refund process. The multinational corporation said it would verify all seven million listings and make changes to the way it operates as a result.The Local Planning Appeal Tribunal (LPAT), which is the provincial body that approved Toronto’s regulations, stated that this move could return 5,000 of the estimated 21,000 Airbnb units to the market. That number represents about 25 percent of Airbnb units in Toronto, but doesn’t include listings on other platforms such as Kijiji and VRBO. The rental vacancy rate in Toronto is around one percent, which is historically low—meaning that for every 1,000 rental units in the city, only ten are available.In a written statement to VICE, Alex Dagg, Airbnb Canada’s public policy manager, said “while this ruling provides regulatory certainty for home sharing in Toronto, we continue to share our hosts’ concerns that these rules unfairly punish some responsible short-term rental hosts who are contributing to the local economy.”Toronto mayor John Tory issued a statement that the city’s plan aims to “strike a balance between letting people earn some extra income through Airbnb and [other rental sites], but we also wanted to ensure that this did not have the effect of withdrawing potential units from the rental market.” People who occasionally rent out their home, or parts of it, won’t notice much of a difference.The new rules require landlords to register their rentals with the city and pay $50. Rental platforms such as Airbnb and VRBO have to pay a one-time licence application fee of $5,000 as well as $1 for every night booked. Landlords will have to pay an accommodation tax of four percent on short-term rentals (less than 28 consecutive days).Thorben Wieditz runs Fairbnb—which represents tenant advocates, academics and the hotel industry—and describes the ruling as Airbnb suffering an “immense defeat.” Toronto’s regulations are similar to rules already in place that limit short-term rentals in Vancouver.Although Wieditz says there are ways around the rules, they take aim at people who use Airbnb to run what is essentially a hotel business, with multiple properties available year-round—places that could be homes for people who live and work in Toronto, one of the most expensive places to own a home or rent in the country.“Commercial hosts are real estate investors who commodify our residential housing stock. They operate anywhere from two to many dozens of so-called entire homes, be these houses, apartments or condo units. They use residential housing stock as hotel inventory in buildings that were not planned, zoned, approved and built as hotels, but as residential buildings,” Wieditz said.The group of landlords who opposed the rules have 30 days to file an appeal or request a review of the decision. It’s not yet clear if they will.Follow Anne Gaviola on Twitter .
Tagged:Airbnbtoronto rentToronto housingfairbnbshort-term rentalhousing regulationstoronto airbnbtoronto airbnb rulesCanadian News
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FAQs
In 2021, the City of Toronto established that landlords must get a license and can only rent out their principal residence for 180 days a year. Still, there are over 8,000 short-term rentals registered with the city, according to an online database.
Is Airbnb profitable Toronto? ›
In 2019, a report by AirDNA, an Airbnb data analytics firm, revealed that Toronto ranked 6th among the top 10 most lucrative Airbnb markets in North America. This ranking highlights the potential profitability for hosts in the city, given the right strategies and adherence to local regulations.
Is Airbnb allowed in Toronto Condos? ›
You can short-term rent in any housing type, for example house, apartment or condominium, as long as it is your principal residence. Name and telephone number of an emergency contact who will be available 24 hours a day during rental periods.
Are Airbnbs bad for housing market? ›
Studies show that an influx of short-term listings makes local rents rise, too. Especially when you live in a place like New York City, where, "at one point, there were more Airbnb listings than apartments for rent,” Jorge González-Hermoso, a research associate at the Urban Institute, says.
Is there a class action against Airbnb in Canada? ›
You may be eligible for Airbnb credit following $6-million class action settlement. If you're a Canadian resident who has used Airbnb for the first time after October 2015, you could be entitled to a credit stemming from a settlement in a class action lawsuit. Posted February 10, 2022 7:40 pm.
What is the average occupancy rate for Airbnb Toronto? ›
Average Airbnb occupancy rates by city in Canada: 2023/2022.
| CITY | ACTIVE AIRBNB LISTINGS | AVERAGE AIRBNB OCCUPANCY RATE (2022) |
|---|
| Toronto | 42,742 | 18.8% |
| Montreal | 35,872 | 14.1% |
| Vancouver | 12,463 | 22.3% |
| Calgary | 8,392 | 23.0% |
1 more rowVancouver is undoubtedly one of the top Canadian cities for Airbnb hosting and investment. Its large market, consistent demand, and significant revenue potential make it an attractive destination for hosts and investors alike.
What is the most profitable city to have an Airbnb? ›
The Best Airbnb Investment Cities and their Metrics
| Cities | Revenue |
|---|
| Miami | $4,062 |
| Los Angeles | $4,275 |
| Las Vegas | $4,368 |
| Austin | $4,119 |
17 more rowsToronto's short-term rental rules dictate that a rental must be all or part of a dwelling unit that is rented out for 28 consecutive days or less, including bed and breakfasts. Airbnb is a licensed short-term rental platform in Toronto, meaning property owners can legally use the platform for rental listings.
Do you need a permit for Airbnb in Toronto? ›
A short-term rental company is any company facilitating or brokering short-term rental reservations online and receiving payment for this service (for example, Airbnb and Booking.com). All short-term rental companies are required to obtain a licence to operate in the City of Toronto.
Ten downtown Toronto condo buildings have more than 50 units on short-term rental sites such as Airbnb, with nearly 8,000 operating across the city.
Which buildings in downtown Toronto allow Airbnb? ›
Best Toronto Airbnb Condos
- 300 Front Street West & 20 John Street. Perhaps the best location of them all. ...
- 55 / 65 Bremner – Maple Leaf Square Residences. ...
- 560 Front Street West – The Reve. ...
- 209 / 215 Fort York Blvd. ...
- 12 / 14 York Street.
Why is Airbnb Illegal or Restricted in Certain Places? Some localities have outlawed or put restrictions on Airbnb hosting for several reasons. One is that it takes away tax revenues (although now Airbnb works with cities to collect such taxes), or siphons business from traditional hotels that do pay taxes.
Are airbnbs losing popularity? ›
Across the US, Airbnb bookings have grown 8.9% over the last year (January 2023- January 2024). However, each market and property is unique. Some markets boom while others bust. And even individual properties can succeed in an otherwise volatile location.
Which states are banning Airbnb? ›
California Cities That Have Banned Airbnb
- Redondo Beach.
- West Hollywood.
- Partial Bans:
- Santa Monica...Ban on whole house STR's.
This move aims to address the growing rental housing shortage across the country. Effective January 1, 2024, these new rules will deny income tax deductions for expenses related to short-term rental income, including interest expenses, in areas where such rentals are prohibited.
What are the rules for Airbnb in Ontario? ›
Once you've registered with the city, there are some specific regulations on how many people you can host and for how many nights. Operators can rent an entire home for up to 180 nights per year. There are no limits for room rentals, but you can rent out no more than 3 rooms.
Did Toronto make a bylaw to crack down on short-term Airbnb rentals? ›
In 2021, Toronto introduced its short-term bylaw to govern rentals that operate through online platforms such Airbnb. Since then, critics have said the city hasn't done enough to combat people breaking the rules, renting out properties that aren't their primary residences.
