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Airbnb Toronto Regulations 2025: What Hosts Need to Know About Short-Term Rental Laws

Writer's picture: JaneJane

Updated: Jan 13

Navigating Airbnb’s short-term rental regulations in Toronto can be overwhelming, especially with new updates rolling out constantly. This guide simplifies everything you need to know about Airbnb rules in in Toronto.


Whether you’re an experienced Airbnb host or just getting started, we will walk you through everything from registration and safety requirements to financial obligations and penalties for non-compliance.


By the end, you’ll have a clear understanding of how to operate your short-term rental legally and in line with airbnb regulations Toronto.

airbnb toronto regulations

What Are Short-Term Rentals in Toronto, and How Are They Different from Long-Term Rentals?

Short-term rentals in Toronto refer to renting out a property for less than 28 consecutive days, typically through platforms like Airbnb. These rentals are capped at 180 nights per year.


In contrast, long-term rentals involve leasing a property for 28 days or more, with no annual limits and governed by separate tenancy laws.

Section 1: Registration Requirements for Short-Term Rentals


To legally operate an Airbnb in Toronto, hosts must meet specific registration requirements and adhere to strict rules. Here’s how to get started:

A. Ensure the Property is Your Principal Residence


The Toronto airbnb regulations limit what can be used for short term rentals. The principal residence rule ensures that short-term rentals are operated only by residents of the property and not investors or corporations seeking short term rent income.


What Qualifies as a Principal Residence?

Your principal residence is the address where you:

  • Live for most of the year.

  • Receive bills, taxes, and official correspondence.


If you cannot prove that the property is your principal residence, your application will be denied. With that being said, many hosts list their property address as their primary residence despite living somewhere else.



New Enforcement Rules (Effective September 30, 2024):


  • One Registration Per Dwelling: Only one host per dwelling can register, with priority given to the host holding the longest active registration.

  • Prevention of Dual Registrations: This change aims to eliminate cases where multiple hosts register the same property under different names to exceed rental limits.

B. Choose Your Rental Type


Previously, some hosts would create multiple listings for the same property. For example, they would host one as an entire unit and others as shared rooms within the house.


This allowed them to bypass the 180-day limit by switching to shared-room listings once they reached the cap for entire-unit rentals. However, the City of Toronto has addressed this loophole with the updated 2025 regulations.


Upon signing up on a platform, hosts must now choose between two rental types:


  1. Entire-Unit Rentals: Renting out your entire property, limited to 180 nights per calendar year.

  2. Partial-Unit Rentals: Renting out individual rooms while you live in the home. There is no limit on the number of nights for partial-unit rentals.


Once you choose a rental type, it cannot be changed during the registration period. Select the type that aligns with your hosting goals.


C. Register with the City of Toronto


To operate legally, you must register as a short-term rental operator. Here’s what you’ll need:


  • A copy of a government-issued ID showing the property address.

  • Proof of principal residence, such as utility bills or tax documents.

  • Confirmation that your condo board or lease agreement permits short-term rentals, if applicable.


You can apply online through the City of Toronto’s website and will receive a registration number that must be included in all rental listings and advertisements.


Registration Fees

Starting January 1, 2025, the annual registration fee for short-term rentals in Toronto has increased to $375, a significant jump from previous years. This fee is mandatory for all Airbnb hosts to register with the city and must be renewed each year to maintain compliance. Failure to having a registration will prevent you from listing your place on platforms like Airbnb.



Section 2: Operating Requirements for Short-Term Rentals


Toronto airbnb regulations also care about the safety of renters. For such reason, the city introduced laws that require hosts to post safety information in their toronto airbnb property.

example airbnb required document regulation

A. Provide A Physical Emergency Plan To Guests

This is likely one of the most overlooked airbnb regulation. Every Airbnb listing must include a clearly posted fire safety plan for guests to see during emergencies. It should include the following information:

Fire related information:

• Exit routes.

• Fire extinguisher locations.

• Emergency procedures for guests.


Emergency numbers:

• Your contact information (phone number) in case of a sudden emergency (e.g. plumbing issue, or flooding).

• Local emergency services numbers, such as 911 as some guests may come from outside of north america.



B. Record-Keeping Requirements


Hosts must keep detailed records of all bookings, including:


• Dates and durations of each stay.

• Prices charged.

• Guest contact information.


These records must be kept for at least three years and made available for city inspections upon request.



Section 3: Financial Responsibilities for Hosts


Municipal Accommodation Tax (MAT)


Toronto imposes a 6% MAT on all short-term rental bookings. For hosts using Airbnb, the platform automatically collects and remits this tax to the city.


What If You Use Other Platforms?


If you list your property on platforms like Vrbo or Booking.com, you are responsible for:


1. Collecting the 6% MAT from your guests.

2. Remitting the tax to the City of Toronto quarterly.


Failure to remit this tax can result in penalties, so ensure that your platform supports automatic tax collection or handle it manually.


Insurance Considerations

Short-term rental hosts must inform their insurance providers about their activities. Failing to do so may void your coverage in cases of property damage or liability.

Section 4: Penalties for Non-Compliance with Toronto Airbnb regulations


Non-compliance with Toronto’s short-term rental regulations can result in:


1. Fines: Up to $1,000 per violation, including failure to register or remit taxes.

2. Listing Removal: Platforms like Airbnb may deactivate your listing if you fail to display a valid registration number.

3. Legal Action: Persistent violations can lead to inspections and legal consequences.


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FAQs for Airbnb Hosts


Can I rent out a property that is not my primary residence?

No, short-term rentals in Toronto are only allowed in your principal residence, where you live for most of the year and receive mail or official correspondence. You must provide proof of this during registration. While you can rent it out for up to 180 days annually, you do not need to reside there during the rental period.


 What happens if I don’t register with the city?

Failure to register your short-term rental can result in fines, deactivation of your listing on platforms like Airbnb, and other penalties enforced by the City of Toronto. Registration is mandatory to legally operate and advertise your rental.


Do I need to collect taxes from guests?

Yes, all short-term rentals in Toronto are subject to a 6% Municipal Accommodation Tax (MAT). If you use Airbnb, the platform will collect and remit this tax automatically. For other platforms like Vrbo or direct bookings, you are responsible for collecting and remitting the tax to the City of Toronto.


What if my condo board doesn’t allow short-term rentals?

Even if city regulations allow short-term rentals, you cannot legally host if your condo board or lease agreement prohibits them. Always confirm your building’s policies before listing your property.


How long can I rent my property on a short-term basis each year?

Short-term rentals in Toronto are capped at 180 nights per year for entire-unit rentals. However, there is no limit on the number of nights for partial-unit rentals if you reside in the home while hosting.


Can I switch between entire-unit and partial-unit rentals during the year?

No, once you choose a rental type (entire-unit or partial-unit) during registration, you cannot switch between them until the next registration period.


What happens if I exceed the 180-night limit for entire-unit rentals?

Exceeding the limit could result in fines, suspension of your registration, or deactivation of your listing by the platform. Stay within the allowed nights to avoid penalties.


How itsGLO Cleaning Can Help You with Managing Your Airbnb




At itsGLO Cleaning, we understand the challenges Airbnb hosts face when it comes to maintaining compliance and providing a great guest experience. Here’s how we can help:


  • Compliance Support: Assistance in keeping up to date with regulations


  • Enhance Guest Experience: We specialize in creating clean, welcoming environments that leave guests impressed. Our attention to detail helps you earn glowing reviews and repeat bookings.


  • Flexible and Affordable Services: With airbnb specific cleaning packages, we save you time and ensure your property is always guest-ready.


Ready to simplify your hosting experience? Contact ITSGLO Cleaning today for professional, hassle-free cleaning solutions. Let us handle the details so you can focus on growing your business.


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