It’s something a lot of Torontonians are talking about right now, and for good reason. The city’s short-term rental registry came into effect on September 10th, and many people—including real estate investors, home renters, and even frequent visors who use AirBnB—are a little confused.
I know how complicated city bylaws can be, especially when they have to do with property! That’s why I wanted to take this opportunity to answer some of the most common questions I’ve been hearing.
If you’re wondering how Toronto’s short-term rental registry could impact you, here’s what you should know…
What it means if you want to rent out a property
Let’s start with the basics. Do you need to register as a short-term rental operator?
If you’re planning to rent out your property for periods of less than 28 consecutive nights, you do. If you’re already doing that, the deadline to register is December 31, 2020. Here are a few things to note.
It must be your primary residence
Translation: you can’t rent out an investment property short-term. It has to be the place where you live and receive your bills. I’m talking about the address you use for your ID, taxes, and insurance.
You’ll need approval in some cases
Whether you’re a homeowner or a tenant, you have the right to rent out your space short-term. Just make sure you get approval from condo management if applicable—and your landlord if you’re renting.
There are limits to how often you can short-term rent
If you’re renting out your entire home, you can’t do so for more than 180 nights per year. When we’re talking about one, two, or three rooms within your primary residence, there’s no limit to how often you can do it.
You can’t rent out your secondary suite
Well, you can rent out a secondary suite if it’s your primary residence. What you can’t do is turn a self-contained unit within your own home (such as a full basement suite) into a short-term rental.
These are just the broad strokes. My advice is to head over to the City of Toronto website and read the rules carefully to avoid future complications!
How to get set up
If you’d like to rent out your home according to the new rules, the first step is registration. Luckily, the process is pretty straightforward. All you need is an Ontario driver’s license or photo card with your address on it, and $50 for the registration fee (payable by credit card). Lastly, you’ll have to designate someone as your alternate emergency contact in case something goes wrong with your rental.
Once your application has been submitted, you can expect to hear back from the city within five days. If it’s accepted, you’ll receive a unique registration number—which you’ll need to use in any advertising that promotes your short-term rental.
What it means for renters
There’s no getting around it. If you’re a short-term rental operator using an investment unit, you’re going to have to change your strategy. On the bright side, taking on a tenant can still provide a tidy profit—and (most likely) more stability and less hands-on maintenance.
Of course, there’s an even bigger silver lining here. In a tight rental market—one where would-be tenants and buyers often have difficulty finding properties that meets their needs—the short-term rental registry will free up more living spaces. That’s good for the housing market, good for Toronto renters, and good for buyers looking for the perfect place to call home!
Whether you have questions about the market or you’re ready to find your perfect property, I’m here to help. Reach out to connect with me today!
