Short-term Rentals

The City of Toronto has released a report proposing regulations for short-term rentals for consultation.  Senior Crossbridge management, including President Sandro Zuliani and Regional Manager Katherine Gow, participated in the industry and stakeholder consultative process.

The proposed regulations are to:

• Amend the City's zoning bylaws to create a new land use called "short-term rental" that is permitted in principal residences across the city;
• Prohibit short-term rentals that are not in a person's principal residence;
• License companies that facilitate short-term rental activity, like Airbnb; and
• Create a registry for anyone who operates a short-term rental in their home.

The proposed zoning framework would permit short-term rentals across the city in the principal residence of any owner or tenant in residential and mixed use zones and in all residential building types. Within their principal residences, people could rent: up to three rooms within a unit, separately; the entire dwelling unit; and lawful secondary suites. A short-term rental would not be permitted in a dwelling unit that is not a principal residence. This restriction limits long-term housing from being converted to accommodation for tourists.

The proposed licensing and registration system would require that all short-term rental operators register with the City and post their registration number in all advertisements. Short-term rental companies would be required to be licensed and only list registered short-term rentals. These regulations strengthen the above zoning amendments and minimize the impacts of short-term rentals on neighbourhoods.

Companies would be required to report quarterly to the City with anonymized data about short-term rental activities, share details about certain listings upon request by the City, remove problem listings and pay a licensing fee. Operators would be permitted to register their principal residence only, and one registration number would apply to all listings associated with that address (renting bedrooms, renting the entire unit, renting secondary suites). Operators would be required to provide appropriate emergency and safety information to guests and pay a registration fee.

Based on information from Airbnb, the City of Toronto estimates that the proposed regulations would permit approximately 7,600 properties rented on Airbnb in 2016 to continue to operate as they likely occurred in a principal residence. Approximately 3,200 properties rented on Airbnb in 2016 would likely not be able to be registered as they likely did not occur in a principal residence.

Toronto proposes to consult the public on the proposed zoning bylaw amendments and the licensing and registration system for short-term rental companies and operators. City staff proposes to report back to Council with final recommendations to regulate short-term rentals in the fourth quarter of 2017.

Concurrent with the proposed regulations in this report, Toronto is considering the implementation of a hotel and short-term rental tax, as directed by Council, subject to receiving legislative authority from the Province of Ontario. On April 27, 2017, the provincial budget proposed giving the City the authority to collect a hotel and short-term rental tax by amending the City of Toronto Act. Recommendations for a tax on hotel and short-term rental will come forward later this year.

The recommendations in this report were developed based on research and consultation. The city sought input from the public and stakeholders through online surveys, public meetings, focus groups with short-term rental operators and users, and meetings with representatives from the short-term rental and tourism industries and community and neighborhood organizations.

The recommendations in the report will be discussed at Executive Committee meeting on Monday, June 19, which begins at 9:30 a.m. in Committee Room 1. You can share your views on the report with the Committee in writing or in person on June 19. You can find information about how to do this here.