The City has permitted short term rentals in residential houses in Vaughan –that is, the homeowner’s or tenants’ principal residence – as of Jan 1, 2020, if they acquire a license. Short term rentals in Vaughan are guest stays in a residence, or part of a residence, for a short period of time (not more than 29 consecutive nights) for a fee. The following is a complete guideline for Vaughan’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.
Short Term Rental Licensing By-law
According to the Short Term Rental Licensing By-law, 158-2019 (PDF):
- Homeowners or tenants/lessees are considered owners.
- Brokerages are businesses such as Airbnb and Homeaway. They provide a service where people can advertise and book short term rentals.
- A Short Term Rental License is required for both owners and brokerages.
Short Term Rental License Application
Starting from January 2, 2020, applications for a license can be submitted. A homeowner, tenant/lessee, or brokerage should submit an application form together with the required supporting documents and the licensing fee to obtain a license. Application forms and user guides are accessible online. They are also available at Vaughan City Hall’s By-law and Compliance, Licensing and Permit Services counter.
The following are steps that owners must follow in order to obtain a license:
- Get a MAT (Municipal Accommodation Tax) number. All short term rental owners and brokerages require a MAT number.
- Fill out the Short Term Rental License Application Form, which is available on the City’s Website. Owners can also find it at the Vaughan City Hall By-law and Compliance, Licensing and Permit Services counter. Except for statutory holidays, the counter is open from 8:30 a.m. to 4 p.m. Monday through Friday.
- Submit the application form to the By-law and Compliance, License and Permit Services counter at Vaughan City Hall, together with the required documentation and the licensing fee.
Short Term Rental Owner’s Requirements
Once a short term rental owner has obtained their license, they must follow the steps below:
- Display the license in a prominent location visible from or close to the short term rental’s main entrance.
- Owners must report any change to the information supplied in the application to obtain or renew a license to the City of Vaughan in writing within seven days.
- Make sure that the short term rental complies with the Ontario Building Code and the Ontario Fire Code at all times, including maximum occupancy.
- For each say, show the MAT amount as a separate item or charge on the bill. This applies to owners who operate their short term rental without the use of a brokerage.
- Owners should collect and remit the MAT to the City of Vaughan.
- For as long as the short term rental is in operation, owners must renew the license annually.
Municipal Accommodation Tax
All short term rental stays are subject to a Municipal Accommodation Tax (MAT). Therefore, to receive a license, owners and brokerages must have a MAT number. Homeowners or tenants/lessees who operate a short term rental must impose a 4% tax on accommodations sold, starting April 1, 2020.
Fire Safety Regulations
The Ontario Fire Code applies to all existing properties in Ontario, which states:
- Owners must install smoke alarms on all floors of the house, outside all sleeping areas, between sleeping areas, and the rest of the house. Moreover, they must be in working condition.
- According to the manufacturer’s instructions, carbon monoxide alarms must be installed adjacent to each sleeping space. Above all, they must be in working condition if the home includes a fuel-burning device, fireplace, or attached garage.
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 Vaughan’s official website or contact us.