Short-Term Rental Regulations in Ontario: What Landlords Need to Know

Airbnb and VRBO rentals are heavily regulated in many Ontario municipalities. Understand the legal landscape before listing.

Lease and Rental Management

Short-term rentals — properties listed on Airbnb, VRBO, or similar platforms for less than 28 consecutive days — occupy a complex regulatory space in Ontario. Rules vary dramatically by municipality, and the penalties for non-compliance can be significant.

In the City of Toronto, short-term rental is permitted only in a host's principal residence. You cannot list a property you don't live in as a short-term rental. The city requires registration, charges annual fees, and enforces the rules through both complaints and proactive monitoring of platform listings.

Ontario Tenancy Law

Other Ontario municipalities have varying approaches. Some prohibit short-term rentals in residential zones entirely. Some permit them with registration. Some have no specific regulation yet. Checking with your specific municipality before listing is essential — not optional.

Condominium corporations have their own rules that may prohibit short-term rentals regardless of municipal permission. Review your condo's Declaration and Rules carefully. Many Ontario condo corporations have enacted explicit short-term rental prohibitions, and violations can result in fines and legal action from the corporation.

Protecting Landlord Rights

The income generated from short-term rentals is taxable. Ontario operators must report the income, and HST registration is required once annual revenues exceed $30,000. Failure to collect and remit HST on taxable short-term rental income is a CRA compliance risk.

D&D Property Management focuses on long-term residential property management. If you're considering converting a short-term rental to a long-term strategy for regulatory or income stability reasons, contact us to discuss the transition.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Property Management

Devon Moore is the co-founder and Operations Lead at D&D Property Management, managing rental properties across Kitchener-Waterloo, Cambridge, Guelph and Waterloo Region.