Are you looking to rent out your property on a short term basis? If so, you’ll need to make sure that you’re compliant with the City of Toronto’s regulations. In addition, you’ll need to be aware of the different types of properties that can be rented on a short term basis and how they differ from long term rental. Regulations for long-term rentals in Toronto vary from those for short term rentals, so it’s important to understand the different rules and regulations that apply to each type of rental.
What is considered a short term rental?
Currently, Toronto has a low vacancy rate for private rental housing. Combined with busy tourist seasons, this has led to an increase in the number of people renting out their homes on short term basis.
This has led to a rise in the popularity of sites like Airbnb and VRBO, which connect owners with tenants who want to rent out their properties for a short period of time. This has prompted the City of Toronto to implement new rules to regulate short-term rentals and prevent illegal activities.
The new rules, which come into effect in 2019, aim to create a balanced approach to regulating short-term rental operators. They include zoning by-laws, a licensing and registration program, and taxation of short-term rental operators.
How do I register my home for short-term rental?
Under the City of Toronto’s short-term rental regulations, hosts who want to host guests in their principal residence on a short-term basis are required to register and display a registration number on their listing. They can also claim an exemption if they have a valid reason.
When you register your home for short-term rental, it will be subject to a Municipal Accommodation Tax (MAT). The MAT is set at four percent and will be collected and remitted on behalf of the City of Toronto beginning January 1, 2021.
What are the benefits of renting your home on a short-term basis?
Short-term rentals are a great way to earn money by renting out a property on a temporary basis. However, if you’re not sure whether it is the right option for you, we recommend that you consult an experienced real estate lawyer before making your final decision.
If you’re unsure about whether you should rent your property out on a short or long-term basis, we’ve put together a list of the key differences between these two options and what each one means for landlords. These tips will help you decide which type of lease will best suit your needs and budget.
Are you a professional who wants to earn money by renting out your property?
Are you a homeowner who wants to rent out your home on a short-term basis?
If you have a principal residence, it is considered a “permitted use” to short-term rent out your entire home, up to three bedrooms, or a secondary suite. This can be done as long as the secondary suite is your principal residence, and it meets certain zoning by-law requirements.
It’s also important to get advice from HLD lawyers to ensure that you’re not in breach of any laws. They can help you understand the regulations and advise you on the best way to rent out your property on a short term basis.