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Changing Regulations for Short-Term Airbnb Rentals

BY Oliver Triskan/July 26, 2021

Over the past few years travelling has been revolutionised. Websites such as Airbnb, Vrbo, and many more made it easier to take a trip to a new city and rent a home for a few nights. However, over the past year regulations have been implemented towards short-term rentals. A short-term rental is categorized as a period of 28 days or less. These websites have benefited greatly from the ease and comfort of renting a home for a short amount of time. Some of the processes that were connected began causing concerns for neighbours and communities. Canadian cities are regulating the websites partially because they are worried about the way short-term rental platforms use rental units rather than them being long-term rentals for families and others looking to have a steady home. Other issues included their use as party houses, where groups of people rent a home for a couple nights so they’re not doing it at their own place. Another use is to fit more people than the unit can accommodate, leading to noise pollution and other party related incidences.

Multiple cities have put in place a stricter set of regulations in order to list a property as a short-term rental. Now renters must obtain a permit from the city and the property must be your primary residence. Once registered with the city, hosts must post their registration number on the listing in order for it to be validated. The only exemption for the primary residence rule in some cities, is if it is a secondary property or vacation home in a rural area. In Toronto an annual fee of $50 is required for registry and a 4 per cent Municipal Accommodation Tax is charged to owners quarterly. If these regulations are broken, fines can range from $300 to $1000.

Condominium Authority of Ontario has provided some solutions for condo owners as well as condo boards and managers. If owners notice an issue, potentially caused by short-term rentals, they should contact their condo board either in person or by letter. Owners should keep copies of their messages and keep track of the issues at hand, such as date and time, the actual issue, and the short-term rental unit. For Boards and Managers, the first action to pursue is to contact the owner. This could solve the problem quickly if the owner is unaware that their occupant is not complying with the condo’s declaration, and the regulations on short-term rentals. When contacting the owner, writing to them is advised, while including the issue, how to fix the issue, and next steps if the issue persists (CAO, 2021).

Overall, these regulations should improve the chances for people to get long-term rentals and reduce the noise and partying accompanied with short-term rentals. 

CAO. (2021, June 30). Short-term Rental. Condominium Authority of Ontario. https://www.condoauthorityontario.ca/issues-and-solutions/short-term-rental-issues/. 

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