What Counts as a Short-Term Rental in Vaughan?
In Vaughan, a short-term rental is defined as the rental of a dwelling unit for 29 consecutive days or less. To operate legally all prospective hosts must apply for a Short-Term Rental (STR) Licence through the City of Vaughan. If you rent your property for longer than 29 days, it is considered a long-term rental and does not require a short-term licence here.
Although the city does not require any licensing to operate a rental unit that extends beyond the 29 day maximum, booking sites such as Airbnb, Vrbo, Booking.com will require all hosts to produce a license to operate on their sites.
Municipal Accommodation Tax (MAT)
Vaughan applies a 4% Municipal Accommodation Tax (MAT) on all short-term stays under 29 nights. Before applying for a short-term rental license all prospective hosts must register for a Municipal Accommodation tax Number.
This tax applies to hotels, motels, and all licensed short-term rentals, including those listed on platforms like Airbnb and Vrbo. In some cases bed & breakfast operators can be deemed exempt from charging the MAT. Hosts are required to collect this tax from guests and remit it on a quarterly basis directly to the City of Vaughan.
Quick Summary of Vaughan Airbnb Rules
- Short-term rental: Applies to stays of 29 consecutive days or less.
- Principal residence only: The rental property must be the host’s primary home. Investment properties and secondary homes are not eligible.
- Licence required: Hosts must obtain a valid STR and MAT Licence from the city before advertising or operating.
- Licence display: The issued licence number must appear on all listings and advertisements.
- Insurance requirement: Hosts must carry at least $2 million in liability insurance.
- Long-term rentals (29+ days): Do not require licensing.
- Municipal Accommodation Tax (MAT): A 4% MAT must be collected from guests and remitted quarterly.
Principal Residence Rule
In Vaughan, you may only operate a short-term rental at your principal residence, meaning:
- You live in the property for at least 183 days per year.
You are registered as a resident at that address on government records. - Tenants must provide written approval from their landlord before applying.
- Condo owners must provide written approval from the condo board if renting within a condominium building.
This rule prohibits secondary homes, investment condos, and non-owner-occupied units from being used as Airbnbs.
How to Apply for a Vaughan Short-Term Rental Licence
Step-by-Step application process and description of requirements here:
- Complete the online application form via the City of Vaughan’s licensing portal.
- Submit required documentation, including:
- completed licence application form
- Proof of property ownership
- Completed certificate of insurance signed by the insurer
- Business registration (Master Business Licence) and/or Articles of Incorporation, if applicable
- Criminal background check valid within the last 6 months
- Information package (as outlined in the By-law) including:
- a floorplan outlining which areas of the property will be used as a STR
- total square footage of the dwelling
- Supporting documentation for determining occupancy limits in accordance with Property Standards By-law
- Pay the required licensing fee.
- Initial fee is $206 (rising to $213 in 2026) and then will need to be renewed annually for $175 ($181 in 2026)
- Arrange for any and all required inspections of the property
Once approved, your licence must be renewed annually.
Vaughan Enforcement & Penalties
The City of Vaughan enforces its STR by-law strictly. Operators who fail to comply may face:
- Licence suspension or revocation. A suspension or revocation may occur if the unit/hosts violate any of these requirements
- Violates licence terms or other applicable laws
- Fails to comply with municipal or provincial regulations
- Operates in a manner that poses a risk to public health or safety
- Creates a nuisance to the surrounding community
- Fines under the Provincial Offences Act, which can reach tens of thousands of dollars.
- Unannounced inspections of licensed properties.
- Unpaid fines added to property tax bills.
- Operating without a licence or listing a non-principal residence can result in significant daily fines.
- Operating without a licence or listing a non-principal residence can result in significant daily fines.
Vaughan Airbnb Market Potential
- Average nightly rate: $120 – $300, depending on size, location, and amenities.
- Occupancy: Steady year-round demand, with peaks during summer and major events in the GTA.
- Revenue potential: Well-managed properties can earn $2,500 – $4,000+ monthly in peak seasons.
Why Vaughan is a Top Airbnb Destination
Vaughan is one of the GTA’s most attractive destinations, blending family-friendly attractions with cultural and recreational experiences. Visitors are drawn to:
- Canada’s Wonderland, the country’s premier amusement park and a top draw for families and thrill-seekers.
- Vaughan Mills, one of the largest shopping centres in Canada, featuring outlets, dining, and entertainment options.
- Cultural attractions, including the McMichael Canadian Art Collection in nearby Kleinburg, showcasing iconic Canadian and Indigenous art.
- Green spaces and trails, such as Boyd Conservation Area and Kortright Centre for Conservation, ideal for outdoor recreation.
- Convenient access to Toronto and Pearson International Airport, making Vaughan a popular base for exploring the GTA without staying downtown.
Demand for Mid-Term Rentals (29+ Days) in Vaughan
Vaughan is one of the fastest developing rentals markets in the world for mid term rentals. Due to its suburban nature but connectivity to not only major cities but also Northern Ontario and lakes. Making it easy to travel across the GTA. There is a consistent and high demand for furnished 30+ night stays that can extend up to 6 months. With almost 40% of all current bookings in the area being categorized as a mid-term stay. There is a consistent demand for a luxurious mid-term rental across all major vacation rental booking sites.
Final Word for Hosts
Vaughan’s vacation rental market is shaped by its mix of tourism, business travel, and family-oriented demand. While regulations must be carefully followed, hosts who provide licensed, well-managed, and high-quality accommodations can achieve strong returns. By catering to both short-term visitors enjoying Vaughan’s attractions and mid-term renters seeking comfort and flexibility, hosts contribute to the city’s reputation as a vibrant and welcoming destination within the Greater Toronto Area.
Explore our services for Airbnb Management Vaughan for expert help setting up and managing your listing. We’ll help you stay compliant while maximizing your rental income. To get more information about other short-term rental regulations, you can also visit Vaughan’s official website or contact us.