If you want to rent your Toronto home or a room on Airbnb or another platform, the City’s short-term rental rules apply. They are stricter than many new owners expect, and they matter if you are buying a condo or house partly for rental income.
What counts as a short-term rental
In Toronto, a short-term rental is renting all or part of a home for less than 28 consecutive days. Rentals of 28 days or longer are regular tenancies and fall under Ontario’s residential tenancy rules instead.
The main rules
- Principal residence only. You can only operate a short-term rental in the home where you live. You cannot run one in an investment property or a second home in Toronto.
- 180-night cap on renting your entire home per calendar year. Renting individual rooms while you live there is not capped.
- Registration. Every operator must register with the City and display the registration number on each listing. Check the City’s website for the current fee and renewal requirements.
- Municipal Accommodation Tax. Operators collect and remit MAT on each stay. The rate was 8.5 per cent from June 2025 to July 2026; confirm the current rate with the City.
- Tenants may operate a short-term rental in their principal residence only if their landlord allows it.
Fines for operating without registration or breaking the rules can be significant. Platforms also remove listings without valid registration numbers.
Condo rules come first
Even where the City would allow it, many Toronto condo corporations ban short-term rentals in their declaration or rules, often with minimum lease terms of several months. Check the declaration and status certificate before you buy if you plan to host.
Outside Toronto
Mississauga licenses short-term rental operators under its own bylaw, and other GTA cities, including Brampton, set their own rules. If you are buying outside Toronto, check that city’s current bylaw rather than assuming Toronto’s rules apply.
What this means for buyers
A Toronto property bought purely as a full-time short-term rental is not legal under the current rules. If you plan to rent part of the home you live in, confirm the condo rules and your insurance, and budget for tax on the income. For long-term rental investing, see owning a rental property in Ontario and investing mistakes to avoid. HomeLife Landmark Realty Inc., Brokerage.
Rules checked September 2026. Confirm details on the City of Toronto website before you host.