The Goldman Team

City of Toronto Proposes Ban on Short Term Rentals in Non-Primary Residences

14 June 2017
Cathy Goldman

City of Toronto Proposes Ban on Short Term Rentals in Non-Primary Residences

The City of Toronto’s Municipal Licensing and Standards department released a report outlining a number of proposals affecting both individuals and companies that offer short-term rentals.

First and foremost, the report proposes banning people from entering into short-term rentals if the property is not their primary residence. This includes properties listed on the popular short-term rental website Airbnb.

According to Mayor John Tory, the purpose of the ban is to reach a balance between the demand for short-term accommodation and the potential disruptions that transient residences can cause in local neighbourhoods. The mayor stated that individuals who purchase secondary properties for the purpose of listing them on short-term rental platforms risked destabilizing neighbourhoods due to the introduction of a transient population.

A further goal is to encourage landlords to list their properties as longer-term rentals.

The report proposed licensing companies such as Airbnb, creating a registry for people who operate short-term rentals, changing zoning bylaws to include a new land use classification for short-term rentals, and a short-term rental tax of up to 10%.

City council still has to vote on the proposals.

An Airbnb report estimates that its users generated neighbourhood spending of approximately $417 million in 2016.

Should the ban be passed, an estimated 3,200 properties would be removed from the short-term rental market. Citing an Airbnb report, the city stated that a ban would still leave roughly 7,600 properties on the market.