On December 7, Toronto City Council adopted recommendations to create a new bylaw for short term rental regulations in the City of Toronto. Coming in the wake of debate between renters, landlords, and Airbnb, the new newly adopted regulations create a framework that serves to protect housing supply from being channeled into hotel-style accommodation.
The new regulations will allow a property owner or tenant to participate as an operator (host) of a short-term rental in their principal residence, where they may share up to three bedrooms, or rent their entire residence on short-term durations but for no more than a total of 180 days a year. Short term rentals are rentals that are offered in periods of 28 consecutive days or less, and are typically facilitated through short-term rental companies (platforms) such as Airbnb.
“These regulations do the right thing in the right way. They strike a balance that embraces new technology and allows short-term rentals while protecting communities,” said Mayor John Tory. “I’m proud City Council has found a way to regulate short-term rentals in a way that will keep housing affordable.”
The new regulations will take effect June 1, 2018. City staff will create an online registration system for short-term rental operators, and will meet with with short-term rental platform companies to provide guidance on implementation of new regulations.
Today City Council voted to allow home sharing, but under strict conditions that protects our fragile rental housing stock. A critical and important decision. @Fairbnbcanada
— Joe Cressy (@joe_cressy) December 8, 2017
Toronto homeowners and tenants who wish to share their principal residence and become a short-term rental operator will be required to register with the City through a new online registration system for an annual fee of $50.
Short term rental platform companies, such as Airbnb, will require a license from the City. The initial application fee will be $5,000 and an annual licensing fee based on $1 per night booked through the platform.
The City is taking steps to accommodate people’s desire to participate in home-sharing arrangements as both guests and hosts, while balancing the need to maintain rental housing stock and avoid commercialization of residential neighbourhoods.
VICTORY!!! Thank you to @JohnTory and @anabailaoTO for your leadership, and for passing regulations that will protect Toronto’s rental housing market, and protect our neighbourhood from ghost hotels. #TOpoli #ONpoli pic.twitter.com/jPvmrrXD1Q
— Fairbnb.ca Coalition (@Fairbnbcanada) December 7, 2017
Breaking – #Toronto council votes 27-17 to regulate @Airbnb & other short-term rentals but to *not* let homeowners include secondary suites. Tenants of those suites could short-term rent them tho. Also, homeowners must show govt ID to prove primary residence
— David Rider (@dmrider) December 7, 2017
Toronto staying on offense! pic.twitter.com/2sk2PFfr3F
— Anand Singh (@anandanand) December 8, 2017