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short term rental regulations Mississauga

On January 19, 2021, the City of Mississauga adopted the new Short Term Accommodation By-Law. The following is a complete guideline for Mississauga’s short term rental regulations so that anyone can be a responsible host when using platforms like Airbnb, VRBO, and other similar services. This rundown should give you a good start in understanding your local laws.

Business License 

In Mississauga, a short term or vacation rental is the rental of all or part of a house for less than 30 days. Under the new Short Term Accommodation By-Law, hosts running a short term rental in Mississauga must obtain a Business License. Hosts can apply for the Business License online or in person at City Hall.

Principal Residence

Hosts can only operate a short term rental from their principal residence (the location where they live for the majority of the year). Moreover, this must be their mailing address for bills, taxes, and insurance. 

Hosts can operate short term rental in a second unit, as long as the second unit is their primary residence. A second unit is also known as a basement apartment, in-law suite, or ADU (Accessory Dwelling Unit). It is a self-contained living space with cooking, sleeping, and sanitary amenities within a detached, semi-detached house or townhouse. 

Short Term Accommodation License 

To apply for a short term accommodation license, hosts must provide the following documents:

  • Proof of being at least 18 years old, such as a birth certificate, valid driver’s license, or valid passport. 
  • A criminal record check by the local police department, issued in the last 60 days. Searches conducted by third parties are not accepted. 
  • Proof of general liability insurance, with a minimum coverage of $2 million per rental, for the operation of a short term rental accommodation. A letter from the host’s insurance company or a copy of their insurance policy may suffice. It is the operator’s entire responsibility to ensure that they are aware of the repercussions of operating a short term rental. So hosts must contact their insurance provider and ensure they have adequate coverage. 
  • Proof that the short term accommodation is the host’s principal residence. This could be a recent utility bill or tax return form, issued in the last 12 months. 
  • Contact details of the main person in charge of the short term accommodation. 
  • Tenants will need permission from the homeowner. 
  • If the property is a condo unit, the condo board’s permission is explicitly required. 

A short term accommodation license costs $250 per year. Hosts must renew their licenses annually. The fee to renew the license is $250.

Application Process

The procedure for submitting an application is as follows – Hosts can complete and submit their application online, along with supporting documents. The City will review it within a few business days.

Other Regulations

As a responsible host, you must comprehend and abide by other vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other short term rental regulations, you can also visit Mississauga’s official website or contact us.