Toronto enforces strict regulations for Airbnb and other short-term rental platforms. If you plan to list your home on Airbnb or other short-term rental platforms, understanding the legal requirements is essential. The city requires hosts to comply with licensing rules, taxation policies, and rental limits. Failing to do so can lead to fines, removal of your listing, or legal consequences.
This guide walks you through the step-by-step process of obtaining an Airbnb short-term rental license in Toronto. By following the correct procedures, you can operate your rental legally and avoid unnecessary complications.
What Is a Short-Term Rental License and Do You Need It for Your Airbnb?
A short-term rental license is a permit issued by the City of Toronto that allows homeowners and tenants to legally rent out their property for periods of less than 28 consecutive days. The city enforces this rule to regulate the short-term rental market, protect long-term housing availability, and ensure hosts comply with zoning laws and tax regulations.
In Toronto, anyone who rents their home for short stays on platforms like Airbnb, Vrbo, or Booking.com must obtain a short-term rental license. You must also register even if you are only renting a spare room. However, if you plan to rent your home for 28 nights or more, you do not need to apply for a short-term rental license. Anything over 28 nights is classified as a long-term rental and does not fall under the same regulations.
If you own multiple properties, you can only register the one that is your primary residence. The city prohibits investment properties or secondary residences from being used for short-term rentals. Toronto’s short-term rental laws aim to prevent housing shortages by ensuring that short-term rental properties do not take away from the long-term rental market.
Who Can Apply for Airbnb Short-Term Rental License
To qualify for an Airbnb short-term rental license, you must be at least 18 years old and the property must be your primary residence. You must live in the home for at least six months per year to qualify. If you own your home, you can apply for a short-term rental license as long as it is your primary residence. If you are a tenant, meaning you are renting your property, you can also register your primary residence, but you must comply with the Residential Tenancies Act and their lease agreement. If your landlord prohibits short-term rentals, listing your unit could result in eviction. If multiple tenants live in the same unit, only one registration per dwelling unit is allowed; the longest-registered occupant will have priority for renewal.
All properties must comply with zoning bylaws, meaning they must be located in an area where short-term rentals are permitted. Some condominium buildings and apartment complexes prohibit short-term rentals, even if the city allows them. Always check with your property management company, landlord, or condo board before applying.
For properties such as basement apartments, secondary suites, and laneway houses, the city has additional regulations. If your secondary unit is legally registered and you live in the home as your primary residence, you may be eligible to rent it short-term. However, investment properties and secondary residences are strictly prohibited from being used for Airbnb.
Step-by-Step Guide to Getting an Airbnb Rental License in Toronto
Gather Required Documents
Before applying for an Airbnb short-term rental license, prepare the following:
- A valid Ontario driver’s license or Ontario photo card with the address of your principal residence.
- A valid credit card to pay the $375 annual registration fee.
- The name and phone number of an emergency contact, who must be available 24/7.
- A completed consent form from your emergency contact.
It is essential that the address on your driver’s license matches your Airbnb listing. If there is any mismatch, your application could be delayed or rejected.
Register Online
Once you have all the necessary documents, visit the City of Toronto’s Short-Term Rental Registration Portal and follow these steps:
- Go to the City of Toronto’s website and access the short-term rental registration form.
- Scroll to the bottom of the page and click “Accept Terms” to proceed.
- Enter your property details, including your address and unit number. Your property must be your primary residence, and the address must match your driver’s license.
- Provide details about your rental—whether you own the property or are a tenant. If you are a tenant, you must confirm that you have landlord approval.
- Fill in operator details, including your full name, phone number, and email. The City of Toronto does not require an account setup, so make sure your email is valid as this is how they will communicate with you.
- Submit emergency contact information, which must match the consent form.
- Review your application for accuracy. Incorrect details may delay approval or result in the suspension of your Airbnb listing.
After submitting your application, you will be directed to the payment page. The $375 registration fee is non-refundable, even if your application is later denied. The City of Toronto reviews applications within 30 to 60 days. If your application is approved, you will receive a Short-Term Rental Operator Number, which must be displayed on all Airbnb listings.
Comply with Ongoing Requirements
Once licensed, Airbnb hosts in Toronto must follow key regulations to remain compliant. Every year, hosts must report their rental activity to the City of Toronto, confirming the number of nights rented and verifying that the property remains their primary residence.
Hosts must also collect and remit the 6% Municipal Accommodation Tax (MAT) unless Airbnb handles it automatically. If using other platforms like Vrbo or direct bookings, the host is responsible for tax payments.
Additionally, all short-term rentals must comply with fire safety regulations, zoning laws, and noise bylaws. This includes working smoke detectors, fire exits, and quiet hours to avoid neighbor complaints. For more details on Airbnb rules in Toronto, check out our quick guide for hosts here.
Renew or Cancel Registration
Your Airbnb short-term rental license in Toronto is valid for one year from approval. To continue operating, you must renew annually on the same date or up to six days before. A renewal notice will be emailed with instructions. To renew, complete the online process and pay the $55.35 non-refundable renewal fee (2024 rate). You’ll need your short-term rental registration number, government-issued ID, and a valid credit card. If you fail to renew by the deadline, your license will become inactive, and late fees will apply. After 90 days, your registration will be cancelled, requiring a new application.
To cancel your registration, email ShortTermRentals@toronto.ca with your registration number, address, and name. You are responsible for remitting any outstanding Municipal Accommodation Tax (MAT) until cancellation is confirmed.
What to Do If Your Airbnb Rental License Application Is Denied
If your Airbnb short-term rental license application is denied, the City of Toronto will notify you and provide the reason for rejection. You will have the chance to submit additional evidence or information to explain why your registration should not be denied.
If your application is ultimately denied, revoked, or refused, you will not be eligible to reapply for 12 months. For example, if your registration was denied on January 5, 2024, the earliest you can reapply is January 6, 2025.
To avoid rejection, ensure that:
- Your ID and address match exactly on all documents.
- You meet all eligibility requirements (primary residence, zoning laws, and tax compliance).
- Tenants have landlord approval if required.
If you believe your application was unfairly denied, you can appeal the decision by providing additional supporting documents.
Frequently Asked Questions
Can I register multiple properties for short-term rental?
No. You can only register one property, and it must be your primary residence—the home where you live for at least six months per year. Investment properties, vacation homes, and secondary residences are not allowed for short-term rentals.
What are the penalties for operating an Airbnb without a license?
Operating an unregistered Airbnb in Toronto can result in fines of up to $1,000 per violation. Renting a non-primary residence, exceeding the 180-night limit, or failing to provide required safety information can lead to fines ranging from $300 to $1,000. Additional penalties apply for obstructing inspections, failing to update registration details, or not keeping transaction records.
What happens if I don’t renew my Airbnb short-term rental license on time?
You can renew up to six days before your renewal date. If you miss the deadline, your license becomes inactive, and you cannot legally rent your home. Late fees apply: $10.42 (1-30 days late), $76.90 (31-60 days), and $148.57 (61-90 days). After 90 days, your registration is canceled, requiring a new application.
How can I prove that my home is my primary residence?
Toronto requires proof of residence, such as an Ontario driver’s license or Ontario photo card matching your rental address. The city may request additional documents like utility bills or tax records to confirm residency.
How can an Airbnb management service help me with short-term rental licensing in Toronto?
Professional Airbnb management services, such as Home Again Property Management, assist hosts with Airbnb rental licensing in Toronto, compliance, and tax requirements. They handle the paperwork, ensure your listing meets city regulations, and help you avoid fines.
Recap
Securing an Airbnb short-term rental license in Toronto is essential for legally operating a short-term rental. Compliance with zoning laws, taxation policies, and safety regulations ensures that your listing remains active and avoids penalties. Renewing your license on time, collecting the Municipal Accommodation Tax (MAT), and adhering to the 180-night annual rental limit are key to staying within the law.
Despite Toronto’s strict short-term rental rules, Airbnb is highly profitable when managed strategically. For those looking to streamline the licensing process and maximize their rental earnings, professional Airbnb management services in Toronto can assist with compliance, guest management, and optimizing profitability—ensuring your rental operates smoothly within city regulations.