Toronto short-term rental rules explained (2026 guide for renters, landlords, & property managers)

Toronto allows home-sharing on platforms like Airbnb, but the rules are strict, layered, and actively enforced. Hosts must register with the city, rentals are limited to a principal residence, and condo bylaws can add another layer of restrictions on top. Renters looking to skip the complexity altogether can search verified 28-day-plus rentals on liv.rent, where the short-term rental rules simply do not apply. Here is what renters, landlords, and property managers need to know in 2026.

What counts as a short-term rental in Toronto?

Definition of a short-term rental under city rules

Under the City of Toronto’s bylaws, a short-term rental is all or part of a dwelling unit rented for fewer than 28 consecutive days. This applies to spare bedrooms and entire units alike, on any platform or direct booking. 

What is excluded from the short-term rental rules?

Hotels, motels, and bed-and-breakfasts licensed under separate municipal rules are excluded, as are student residences owned or operated by publicly funded or non-profit educational institutions. 

Who can legally operate a short-term rental in Toronto?

Only individuals (not corporations) may register, and the unit must be their principal residence. Renting out an investment property or secondary suite you do not live in is prohibited under the bylaw. For a full list of short-term rentals in Toronto that meet the city’s rules, liv.rent’s verified listings are a good place to start.  

The principal residence rule in plain language

How the city defines “principal residence”

In Toronto, principal residence is where you actually live: the address on your driver’s licence, tax filings, and utility bills. The city may request at least two supporting documents to confirm it. Misrepresenting your principal residence is one of the city’s top enforcement targets.

One principal residence at a time limit

Each registration is tied to one address. Where a registration is revoked, no one else can register at that address for 12 months. The city’s rules are designed to stop “portfolio-style” operators from running multiple short-term rentals under the home-sharing framework. 

Airbnb rules vs condo bylaws: two gates you must open

City-level rules vs building-level condo restrictions

City registration is necessary but not always sufficient. Condo corporations can ban or restrict short-term rentals through their own bylaws, and many Toronto boards require minimum rental terms of 30 days or longer. Ontario courts have upheld these restrictions. Both the city’s rules and the building’s rules must be satisfied.     

 

How condo boards override platform assumptions

Airbnb will not flag a listing that violates a building’s bylaws. Boards can impose fines of hundreds of dollars per day for unauthorized short-term rentals. The City of Toronto also publishes all active short-term rental registrations, including unit numbers, on its Open Data portal, giving boards a straightforward way to identify non-compliant units. 

Risks for tenants and renters using short-term rentals

When you’re legally subletting vs violating your lease

Ontario’s Residential Tenancies Act requires landlord consent to sublet. Renting your unit on a short-term basis without that consent, or in breach of a clause prohibiting business use, can lead to eviction through the Landlord and Tenant Board on grounds of substantial interference or illegal activity. 

Common pitfalls for tenants using Airbnb arbitrage

Some tenants lease units long-term and re-rent them short-term for income. In Toronto this typically breaches the lease, violates condo bylaws, and conflicts with the principal residence rule, since the tenant is not genuinely living in the unit. The city’s framework is explicitly designed to prevent this. 

Licensing and registration process in 2026

Every short-term rental operator in Toronto needs a valid city registration before listing. For a deeper look at the licensing process, our Toronto short-term rental licence guide covers the full details. Here is the quick version.

Who must register and why it matters

Every short-term rental operator in Toronto must register and display a valid registration number before accepting bookings. No exemptions apply based on frequency or income. Platforms must verify registration numbers against city data and remove listings that lack one. 

Step-by-step registration journey through the city portal

Register at the City of Toronto’s online STR portal: 

1. Create an account and select your rental type (partial unit or entire unit). 

2. Enter your property address, matching it exactly to your proof of residence. 

3. Upload government-issued ID and at least one proof-of-residence document. 

4. Pay by credit card. The 2026 fee is $375 for new registrations and $390 for annual renewals. 

Registration is valid for one year. Entire-unit rentals are capped at 180 nights per year. Partial-unit rentals (rooms rented while you remain in the home) have no annual night cap. 

Common violations and how fines stack up

The most common violations are operating without registration, renting a non-principal-residence unit, and failing to collect and remit the Municipal Accommodation Tax. Fines start around $1,000 for first-time infractions and can reach $100,000 for serious or repeated offences, with additional daily fines for continuing violations. Non-compliant hosts also risk platform delisting, condo enforcement, and, for tenants, eviction.   

Tax implications: MAT, HST, and income tax

Municipal accommodation tax (MAT) at 8.5%

Toronto applies a Municipal Accommodation Tax on stays of fewer than 28 days. The current rate is 8.5%, in effect from June 1, 2025 to July 31, 2026 under Bylaw 1259-2024, after which it returns to 6% unless council acts otherwise. Platforms like Airbnb collect and remit it on behalf of operators through a Voluntary Collection Agreement, but hosts must still file a MAT report each quarter regardless. 

HST and CRA expectations for short-term hosts

Once taxable revenues exceed $30,000 in any 12-month period, hosts must register for and remit GST/HST, per the Canada Revenue Agency. Short-term rental income must also be reported on a personal tax return. Consult a tax professional for guidance specific to your situation. 

Enforcement reality in 2026: how the city and condo boards catch hosts

Data sharing with Airbnb and other platforms

Toronto requires licensed short-term rental platforms to verify all listings against the city’s registration database and remove those without a valid number. Platforms must also retain records of all short-term rental activity for three years and provide them to the city on request. Enforcement is no longer complaint-driven. 

Public short-term rental data and condo monitoring

All active registrations, including unit numbers and addresses, are publicly searchable on the city’s Open Data portal. Condo boards regularly use this data, alongside direct platform monitoring, to identify unauthorized short-term rentals in their buildings. 

Toronto short-term rental rules for property managers

Compliance obligations when managing multiple units

The bylaw’s “cause or permit” language means managers can face fines alongside owners for enabling violations. For each unit managed, confirm the host’s registration number, verify genuine principal residence, and check that the building’s condo bylaws permit short-term rental activity. 

Risk management for licensed operators and their agents

Disclose short-term rental activity to your insurer: standard homeowner and landlord policies may not cover STR-related claims if the activity was not declared. Guest screening, clear house rules, and timely MAT filings are the most practical way to stay compliant and avoid escalating penalties. 

Frequently asked questions (FAQs)

What is a short-term rental in Toronto?

Any home or room rented for fewer than 28 consecutive days, in the host’s principal residence, under the city’s bylaw.  

Do I need a short-term rental licence in Toronto?

Yes. Registration is mandatory before listing or accepting bookings. The 2026 fee is $375 (new) or $390 (renewal), paid annually. 

Can I use two Toronto properties as short-term rentals?

No. The bylaw allows one registration per host, tied to their single principal residence. 

Is 3 months considered short-term in Toronto?

No. Stays of 28 days or more are regular residential tenancies under Ontario’s Residential Tenancies Act, not short-term rentals. For verified one- to six-month rentals in Toronto, liv.rent lists medium-term options with ID-verified landlords and digital leases. 

Can a tenant legally run a short-term rental in Toronto?

Only if the unit is the tenant’s genuine principal residence, the landlord has consented, any applicable condo bylaws permit it, and the tenant holds a valid city registration. All four conditions must be met. 

What happens if I rent short-term without registering?

Fines from $1,000 to $100,000, potential platform delisting, condo enforcement action, and, for tenants, possible eviction. 

Where can I find short-term rentals in Toronto? (1–6 months)

Stays of 28 days or more fall under standard tenancy law, not the short-term rental bylaw. liv.rent specializes in verified medium-term rentals across Toronto for renters looking for one- to six-month stays.