If you’ve seen how much money can be made by renting out your place on Airbnb, you might be wondering how to get an Airbnb license in Toronto. You need to take a few steps to solidify a Toronto Airbnb license. You can then rent out your home or a room short-term.
You register with the city of Toronto and must collect and give the government 6%, known as Municipal Accommodation Tax (MAT). The “short-term rental” license is required for any rental less than 28 days consecutively. As a host, you can apply for the Toronto Airbnb license through the City of Toronto’s website. This process takes up to a few weeks. We have compiled this guide on how to apply.
Who Needs a License?
Sole proprietors, partnerships, or corporations can also apply for a short-term rental business licence. Regardless of size, all companies must be licensed and comply with the fees and data-gathering requirements in the bylaw.
Eligibility on Who Can Apply for a Toronto Airbnb License
To short-term rent, you must be:
- 18 years or older
- using your principal residence in Toronto
- able to demonstrate that you live at your principal residence
- As a homeowner, you can short-term rent your principal residence only. This is the home where you live and the address you use for bills, identification, taxes, and insurance.
- If you have an insurance policy, you should understand the implication of operating a short-term rental. You may ask your insurance company about the appropriate insurance product for short-term rentals.
- As a tenant, you can short-term rent your home as long as it is your principal residence.
- You should know your responsibilities under the Residential Tenancies Act and your lease agreement with your landlord.
Multiple individuals living in the same home
- If you are living in the same home with other individuals (for example, as two tenants), then each one of you may register the same home as your short-term rental as long as the home is your principal residence.
- As short-term rental operators, you are responsible for ensuring that your entire home is rented to a maximum of 180 nights per year.
- If your entire home is rented out for more than 180 nights per year, then each operator at your home may be charged with an offence under the bylaw.
Check if Your Home is Eligible
You can short-term rent in any housing type, for example, house, apartment or condominium, as long as it is your principal residence. You can rent up to three bedrooms in your principal residence for an unlimited number of nights per year or the entire home for 180 nights per year.
- Individuals usually rent apartment units and are in multi-unit residential buildings or mixed-use buildings. Airbnb property management companies usually operate the buildings.
- You should know your responsibilities under the Residential Tenancies Act and your lease agreement with your Airbnb management company.
Duplex, triplex or fourplex
- A duplex, triplex or fourplex is a house with two, three or four self-contained units over multiple floors. They may share walls or outdoor areas with other houses.
- If you reside in one of the units of a duplex, triplex or fourplex, then you are permitted to only short-term the portion of the house that is your principal residence. You are not permitted to short-term rent the other units.
- A secondary suite is a self-contained and separate living accommodation where food preparation and sanitary facilities are provided for the exclusive use of the occupants. This is located within a larger house (for example, a basement apartment).
- You can temporarily rent a secondary suite only if you are the principal resident.
- Your secondary suite must be permitted by zoning bylaws and comply with Building Code and Fire Code requirements. For more information, contact Toronto Buildings.
- A laneway suite is a self-contained residential unit located on the same lot as a larger house and generally in the rear yard. A laneway suite must be next to a public laneway.
- You can short-term rent a laneway suite only if you are the principal resident of the suite.
- If you live in a condominium, you can short-term your home as long as it is your principal residence.
- Note that some condominium corporations have their bylaws regarding short-term rentals, including prohibiting short-term rentals. You are responsible for understanding and following the rules your condominium sets.
Bed and Breakfast (B&B)
- Bed and Breakfasts (B&Bs) continue to operate under existing zoning permissions for Tourist Homes.
- B&Bs will be subject to the rules for short-term rentals and must register with the City.
- Only your principal residence can be rented out short-term.
- Secondary or investment properties can be rented out long-term.
Make Sure Your Short-Term Rental Information is An Exact Match
If your short-term rental listing has been removed, this could be because the information in your listing does not exactly match the information in your short-term rental registration with the City. When listing or advertising your short-term rental, please ensure that your registration number is correct, the address is displayed in full and in the correct fields (including unit number and postal code), and the correct legal name is used. Learn how to list or advertise your short-term rental correctly.
Read more about short-term rental regulations in Toronto here.
How to Register
Registration and payment for your short-term rental need to be completed online.
During the registration, you must certify the information provided, declare that your residence meets the Ontario Fire Code and the Ontario Building Code, and authorize information collection.
What you need to register
When registering online, you need to provide the City with information, including
- A valid government-issued identification (ID) which includes your address
- Only Ontario Driver’s licenses or Ontario Photo Card are accepted (more information below)
- Contact information and address
- Your name and address on the registration must match your government-issued ID.
- Details of your short-term rental, including a description of the building your rental is located in and which parts of the home you will short-term rent
- Name and telephone number of an alternate (emergency) contact who will be available 24 hours a day during rental periods.
Note: Before submitting information to the city, you must obtain consent from your contact(s) using the Consent for Alternate (Emergency) Contact Persons EditSign form. You must ensure that your alternate (emergency) contact has consented before you submit their contact information. Please keep a record of this consent.
It would help if you had a government-issued identification (ID) to demonstrate that you are over 18 and to show evidence of your principal residence. Only the following IDs, which include your address, are accepted:
- Ontario Driver’s Licence or
- Ontario Photo Card
The name(s) used in your registration application must match your ID.
Your government-issued ID (Ontario Driver’s License or Ontario Photo Card) must be valid and in good standing.
If you do not have a government-issued ID, you must obtain it before registration. This may involve updating a home address on a current licence, converting an out-of-province driver’s licence to Ontario, or applying for an Ontario Photo Card. It may take four–six weeks to receive your Ontario Photo Card.
You are required to pay a registration fee of $53.22 in 2023. The registration fee is subject to an annual increase.
This is a non-refundable registration fee valid for one year after your registration has been approved. Fees can be paid using only a valid credit card. The online registration system does not accept debit cards, Visa Debit or Visa gift cards.
Please note that you are not eligible to register your short-term rental if your registration was denied, revoked or refused in the last 12 months. For example, suppose your application for a short-term rental registration was finally denied, revoked or refused on January 5, 2021. In that case, you will need to wait a year, and the earliest you can apply again would be on January 6, 2022.
Wait for Approval
After you provide your information and make payment, the city will validate the information and review your application.
If your application is approved, a registration number will be generated and emailed to you; The City aims to process your application as soon as possible. However, we may experience a higher-than-normal volume of applications. While some applications are processed and approved automatically, others may require additional review and/or an inspection of the property before approval, which may lead to delays in processing your application. If further review is required, wait times can approach or exceed 30 days following the submission of applications.
Please remember that you can short-term rent your home in Toronto only if you are a registered operator. The valid city-issued registration number must be included in all your advertised listings.