Torontonians who operate (or who plan to operate) a local short-term rental should be mindful of the newest phase of related City bylaws coming into effect on January 1, 2025.

The phase of updates is the last of a three-part series, which first saw implementation in June.

Defined as those who are renting their homes or rooms on a short-term basis (aka: fewer than 28 consecutive days), short-term rental "operators" or "hosts" should be aware of the following changes, coming into effect as of this Wednesday:

1) The short-term rental operator registration and renewal fee will increase to $375.

2) Operators/hosts must choose between registering as either an entire-unit short-term rental operator (i.e. short-term renting their entire home) or as a partial-unit short-term rental operator (i.e. short-term renting only rooms in their home) for the duration of their registration period.

3) If operating or hosting a partial-unit rental (i.e. short-term renting only rooms in the home), they can only advertise one fewer than the number of bedrooms available in their principal residence. Partial-unit rental operators cannot rent out the entire dwelling unit at the same time.

READ: STOREYS' Trend Of The Year: The Pivot To Purpose-Built Rentals

Over the course of the last year, two previous phases of short-term rental bylaws have come into effect. Phase 1, which launched June 30, 2024, included the following:

  • Revised definition of short-term rental, principal residence, and dwelling unit to clarify the bylaw and make it easier for operators to understand the regulations.
  • Operators/hosts now need to post a physical copy of the emergency contact information and exit diagrams prominently in the rental for the duration of the guest’s rental period.
  • The 40-day registration revocation process was reduced to a 10-day process. The appeal process remains to allow operators/hosts to provide evidence and information to explain why registration should not be revoked.
  • Licensed multi-tenant house operators are prohibited from applying for a short-term rental registration.

Phase 2, implemented September 30, 2024, included these new updates:

  • Operators/hosts are now asked to submit, upon request, at least two documents in addition to government-issued identification to provide additional evidence of principal residence.
  • Operators/hosts may now be asked to attend an in-person interview with the City to present information or documents that may be required to evaluate eligibility to be issued a short-term rental registration.
  • The City now has the authority to conduct annual inspections of all registered short-term rentals.
  • Operator registration is now tied to one's principal residence address. When a registration is revoked, they are unable to apply for a new registration for one year, and no other person is able to apply for a registration related to said address for one year.
  • Only one registration is allowed per dwelling unit.
The year closes (or, we should say, begins) with the series' third and final Phase coming into play.
In addition to the bylaw updates themselves, operators and hosts (or those interested in becoming one) should keep themselves up-to-date on short-term rental regulations, eligibility, registration and renewal details, tax information, accessibility information, and fines for bylaw violations. All of these details can be found on the City's webpage.

More general information about short-term rental operations in Toronto can be found here.

Renting