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New Year, New Rules: Toronto's 2020 Airbnb Regulations

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Last updated on
January 28, 2020

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As the New Year rings in, resolutions and regulations alike have begun popping up here in Toronto.  With the short term rental economy proving its endurance, Toronto city officials have jumped onboard to help shape the future of home sharing.  Regulation is a good thing because it provides clarity, but it can be confusing so we want to help to simplify it for you.

So what are the regulations?

Here’s the breakdown:

  • The regulations will only be applied to stays that are 27 days or less. Any stays longer than this will not be recognized as STR stays and the new regulations will not apply.
  • Properties being rented as an entire, private property are allowed to host guests for up to 180 nights of the year.
  • The City will claim a 4% Municipal Accommodation Tax on any Short Term Rental earnings and host are required to pay a registration fee of $50/year.
  • Short Term Rentals are to only be allowed in the owner/tenant’s “Principal Residence”. To prove principal residency, a government issued ID with the STR address should be provided.

* PLEASE NOTE all the regulations will only be applied to stays that are 27 days or less. Any stays longer than this will not be recognized as STR stays and above regulations will not apply.


The City has not given specific dates yet, but instead a general timeline. Licensing is said to begin in Spring 2020 and hosts/ homeowners will have three months to register. During those three months, the City will offer guidance and education on how to comply with the licensing rules. From here, the City will begin enforcing the regulations Summer 2020.

"Licensing is said to begin in Spring 2020 and hosts/homeowners will have three months to register."

What does Houst think about this?

We operate globally and have experienced regulation introductions in a number of cities from London to Dubai. Regulation provides safety and clarification for hosts, which is good for the whole community.  We do believe that limiting use to Primary Residence only is overly restrictive because secondary homes make up a good proportion of Airbnb hosts and are needed for any city to meet the demand. Limiting this limits the potential a city and community can benefit from tourism.  However, it’s great that Toronto has put the day limit at 180 days and seems to be largely in favour of the benefits that home-sharing can bring.

We encourage our hosts to stay informed with all regulatory considerations regarding their property. . You can find a thorough description and updates from the City on their website by clicking here.

**This article is intended to highlight just some of the key issues involved with home sharing. It should not be taken as formal advice. If unclear on regulation in your city, it is advised to seek professional advice.**