Your Toronto condo rents out long-term for a steady cheque each month. Airbnb promises more money, but with more work and more rules. This guide compares the two on 2026 numbers, walks through the rules that can block you, and shows when conversion makes sense — and when it does not.
TL;DR
- Toronto only allows short-term rentals in your principal residence. You cannot convert a unit you do not live in.
- Airbnb averages about $1,467/month in Toronto (2026 AirROI data). A 1-bedroom condo rents long-term for roughly $2,100–$2,200/month. Many hosts earn less than a stable tenant would pay.
- Conversion costs real money: furnishing, registration ($390/year), platform fees (15.5%), cleaning, and possibly management (18–25%).
- You cannot end a tenancy just to run an Airbnb. An own-use eviction requires genuine own use, at least 120 days’ notice, and one month’s compensation.
- Stays of 28 nights or more sit outside Toronto’s short-term rental rules. Mid-term renting is the safer middle lane.
On this page:
- The Money Comparison: Long-Term Rent vs. Airbnb Revenue
- The Costs Most Owners Miss
- Toronto’s Rules Can Block You Entirely
- Ending a Tenancy the Right Way
- When Conversion Is Not Worth It
- The Middle Lane: Mid-Term Rentals
- If You Decide Yes: How to Make the Switch
- Frequently Asked Questions
The Money Comparison: Long-Term Rent vs. Airbnb Revenue
Start with honest numbers. A 1-bedroom condo in Toronto (the 416) rented long-term goes for roughly $2,100 to $2,200 a month in 2026. That number arrives once a month, every month, with almost no work.
Airbnb looks bigger. Toronto listings averaged about $1,467/month in 2026 AirROI data, at 43.6% occupancy and a $165 average nightly rate. The median host made $1,765/month. Top-quartile hosts made $3,559 or more. Spread across about 11,000 listings, most hosts sit near the average — which is less than what a long-term tenant pays for a 1-bedroom.
The catch is the word “average.” Occupancy is uneven. June peaks. February sinks. A host with great photos, quick replies, and 100+ reviews can beat long-term rent by a wide margin. A new host with a thin profile often earns less than a stable tenant would pay — while working much harder. Before you switch, read our full breakdown of what owning an Airbnb in Toronto actually earns.
The Costs Most Owners Miss
Airbnb revenue is gross revenue. The costs bite harder than long-term landlords expect.
Setup costs. A long-term rental needs a clean, empty unit. An Airbnb needs furniture, cookware, linens, towels, smart locks, and decor that photographs well. Many owners spend $5,000 to $15,000 furnishing a 1-bedroom. Our furnishing cost guide breaks down the real numbers.
Registration. Toronto charges $390 a year for a short-term rental registration. You need a registration number on every listing. No registration, no listing.
Platform fees. Airbnb charges hosts a 15.5% host-only fee. If your nightly rate is $150, you keep $126.75. Gross your rates up or the fee eats your margin.
Cleaning and turnover. Every checkout needs a full clean. Budget $80 to $150 per turnover, or factor the hours if you clean it yourself.
Management. If you do not want to answer messages at midnight, managers typically charge 18–25% of revenue. Home Again charges 15% + HST with full service.
Taxes. Short-term stays attract Toronto’s 6% municipal accommodation tax plus 13% HST. Income is taxable, and since January 1, 2024, owners running non-compliant short-term rentals cannot deduct expenses under the Income Tax Act’s short-term rental rules. Our Ontario tax guide for condo owners covers the full stack.
Add these up and the “Airbnb premium” shrinks fast. A host grossing $1,800/month can net less than a $2,150 long-term rent after fees, cleans, and furnishing amortisation.
Toronto’s Rules Can Block You Entirely
This is the part that stops most conversions cold.
Principal residence only. Toronto allows short-term rentals only in your principal residence — the home where you live. Entire-home rentals are capped at 180 nights a year. Rooms rented while you are home have no cap. If you live in one condo and want to Airbnb a second one, the law says no.
Registration is mandatory. You must register with Municipal Licensing and Standards, pay the annual fee, and display your registration number on every listing. Getting the licence can take weeks, so start early — here is the 2026 timeline.
Your condo board gets a vote. Even if the city allows it, your condo corporation can ban short-term rentals in its declaration or rules. Most downtown buildings already do. Check before you spend a dollar on furniture. Our condo board rules guide explains how to check.
Fines are serious. Unregistered or non-compliant short-term rentals face fines from $1,000 to $100,000. This is not a grey area worth testing.
Ending a Tenancy the Right Way
If your unit has a tenant, you cannot simply end the tenancy because Airbnb pays better. Ontario law does not allow that.
The lawful path is an own-use eviction (Form N12) — but it requires genuine own use: you, a close family member, or a purchaser moving in for at least a year. Turning the unit into an Airbnb right after an own-use eviction is bad-faith, and tenants can take it to the Landlord and Tenant Board for compensation.
An N12 requires at least 120 days’ notice and one month’s rent as compensation. If your situation does not qualify, your options are a mutual agreement to end the tenancy or waiting for natural turnover. Never pressure a tenant out — the penalties and legal costs dwarf any revenue gain.
When Conversion Is Not Worth It
Stay long-term when:
- You do not live in the unit. The principal-residence rule ends the conversation.
- Your condo bans short-term rentals. Board rules override everything.
- You need steady cash flow. A tenant’s rent covers the mortgage every month. Airbnb income swings with seasons.
- Your unit is new. Rent control does not apply to units first occupied after November 15, 2018 — you can raise rent to market between tenants, and the 2026 guideline of 2.1% does not bind you on new leases. Market rents may already beat mediocre Airbnb numbers.
- You cannot be hands-on. Airbnb guests message at all hours. If you will not respond quickly — or pay a manager — reviews and revenue suffer.
- The 180-night cap binds you. A full-time entire-unit Airbnb tops out at 180 nights a year. If the unit is your income source, the cap cuts your ceiling.
The Middle Lane: Mid-Term Rentals
Stays of 28 nights or more fall outside Toronto’s short-term rental bylaw. No registration. No principal-residence requirement. No 180-night cap.
Mid-term tenants — relocating professionals, insurance claims, medical stays — pay more than long-term rent but less than nightly Airbnb. A 1-bedroom can fetch $2,400 to $3,000 a month on a 2- to 3-month stay, with a fraction of the turnover work. You skip most of the furnishing arms race, and you skip the nightly guest-message treadmill.
For many owners, mid-term renting is the actual answer to “long-term or Airbnb?” Read our full mid-term rental guide for Toronto owners.
If You Decide Yes: How to Make the Switch
If the numbers work and the rules allow, here is the order of operations:
- Confirm eligibility. Principal residence, condo board permission, no tenant in place.
- Register. Apply to Municipal Licensing and Standards and get your registration number.
- Price it honestly. Set nightly rates from comparable listings, not wishful thinking. Gross up for the 15.5% platform fee. Use dynamic pricing so slow months fill and peak months pay.
- Photograph it well. Photos are the listing. Clean, bright, honest photos beat staging.
- Protect the downside. Get proper short-term rental insurance, set house rules, and keep a reserve for repairs.
- Get help if you need it. A Toronto Airbnb management company can run the whole operation — pricing, guests, cleaning — for 15–25% of revenue.
Frequently Asked Questions
Can I convert my long-term rental to an Airbnb in Toronto if I do not live there?
No. Toronto only allows short-term rentals in your principal residence. A unit you do not live in cannot be listed, no matter how profitable it looks.
Does Airbnb earn more than long-term rent in Toronto?
Sometimes. Toronto Airbnb hosts averaged about $1,467/month in 2026, while a 1-bedroom rents long-term for roughly $2,100–$2,200. Top hosts beat long-term rent; average hosts often do not, especially after fees and turnover costs.
What does it cost to convert a rental to Airbnb?
Expect $390 a year for registration, 15.5% platform fees, $80–$150 per turnover cleaning, $5,000–$15,000 to furnish a 1-bedroom, plus 6% accommodation tax and 13% HST on stays — and 18–25% if you hire a manager.
Can I evict my tenant to turn the condo into an Airbnb?
No. Own-use evictions require genuine own use, at least 120 days’ notice, and one month’s compensation. Evicting a tenant to run an Airbnb is bad-faith and can lead to LTB penalties.
Is a 28-night stay considered a short-term rental in Toronto?
No. Stays of 28 nights or more fall outside Toronto’s short-term rental rules, so no registration or principal-residence requirement applies. This makes mid-term renting a popular middle option.
Should I hire a manager or run the Airbnb myself?
Self-managing saves 18–25% in fees but means round-the-clock guest communication, cleaning coordination, and pricing work. If your time or responsiveness is limited, a manager usually pays for itself in higher occupancy and better reviews.