Short Term Rentals in Canada: Challenges and Opportunities

In Ontario, the Municipal Act and City of Toronto Act grant cities broad authority to regulate short-term rentals (STRs). Here’s an overview of how STRs are managed in Ontario:

Local Authority

• • Cities have the power to decide where STRs are allowed, how they are taxed, and what licenses hosts need.
  • This flexibility allows communities to manage the impact of the booming short-term rental market.

Regulation Details:

Definition: A temporary rental unit is a home rented out for less than 28 consecutive days, excluding hotels and motels.

Eligibility to Register: All temporary rental units in Toronto must register with the city. Eligible housing types include:

• • • • Rooms in homes
      • Basement apartments
      • Units on residential properties (including laneway suites)

Condominiums and Apartments: Check association bylaws before renting out condos or apartment units. Some buildings regulate or prohibit short-term rentals.

Primary Residence Requirement: The rental home must be your primary residence, where you live and use the address for bills, taxes, and insurance.

Ineligible Properties: Second homes, investment properties, and non-residential areas are ineligible for STRs.

Municipal Accommodation Tax (MAT): Operators must collect and remit a 6% MAT on all rentals, filing online reports and payments quarterly.

Constantly Evolving Rules:

• • Local specifics vary and evolve, so it’s essential to research how STR regulations work in your specific city.

Check with your municipality about local bylaws and permit requirements before leasing a property on a short-term basis. Stay informed as regulations may change.

In Manitoba, the regulation of short-term rentals has undergone recent changes. Let’s explore the key aspects:

Licensing and Accommodation Tax

• • Licensing Requirement: Anyone listing a short-term rental must obtain a license.
  • Accommodation Tax: A five-percent accommodation tax applies to short-term rentals.
  • **Exemption for Multiple Listings**: Owners who currently operate multiple short-term rental properties in areas zoned for single-family homes and duplexes are grandfathered in.

Downtown vs. Residential Areas

• • Initially, the proposed regulations treated short-term rentals in downtown Winnipeg and commercial or multi-family zones more leniently.
  • Amendment: Thanks to the efforts of Coun. Sherri Rollins, short-term rentals in downtown Winnipeg are now treated the same as those in residential neighborhoods. This ensures consistency and addresses concerns raised by residents regarding noise and disturbances from parties.

Safety and Resident Concerns

• • Condo owners, like Craig Penner from Glasshouse Skylofts downtown, have witnessed excessive noise and criminal activity in short-term rentals within their buildings.
  • The task force aims to strike a balance between responsible regulation and the benefits of short-term rentals.
  • Melanie Mitchell, president of the Manitoba Association of Short Term Rental Owners, emphasizes that short-term rentals are part of the solution, not the cause of all issues in Winnipeg

To strengthen local government tools for bylaw enforcement, the Act introduces several key measures:

• Increased Fines: Maximum fines for regional district bylaw offences under the Offence Act will be raised to $50,000. Local governments can now issue fines of up to $3,000 per infraction per day under the Bylaw Enforcement Ticket Regulations.
• Data Sharing: A data-sharing system will be implemented, requiring short-term rental platforms to provide listing information to the Province. This information will be shared with local governments for bylaw enforcement and with the Ministry of Finance and the Government of Canada for tax auditing purposes.
• Platform Accountability: Short-term rental platforms are obligated to remove listings lacking valid local government business licenses upon local government request. Listings without a valid provincial registry number will not be allowed.
• End of Legal Non-Conforming Use: The removal of nonconforming use protections that allowed short-term rental hosts to continue operating in specific areas despite updated local bylaws prohibiting their use in those areas.
• Provincial Registry: A short-term rental registry will be established, requiring hosts and platforms to register with the Province.
• Compliance and Enforcement Unit: A provincial Compliance and Enforcement Unit within the Ministry of Housing will support the enforcement of the new legislation.
• Principal Residence Requirement: The legislation introduces a provincial (External link)principal residence requirement, limiting short-term rentals to the host’s principal residence, plus one secondary suite or accessory dwelling unit on the property. This requirement applies to municipalities with a population of over 10,000 people and adjacent communities, with exemptions where necessary. Exempt municipalities may choose to “opt in” to this requirement prior to March 31, 2024.

Starting from May 1, 2024, short-term rentals in BC will be restricted to principal residences and either a secondary suite or an accessory dwelling unit (ADU) in many communities.

Source

Province-Wide Regulations

Alberta’s Tourism Levy

Certain individuals or entities are exempt from paying the tourism levy if they provide valid evidence of entitlement. Exemptions include the Government of Canada, armed forces personnel stationed in Canada, and Indigenous individuals or bands providing accommodation on a reserve in Alberta.

Specific Situations

The tourism levy doesn’t apply to accommodations occupied by the same individual continuously for 28 days or more, as well as accommodations with a purchase price of less than $30 per day or $210 per week that are not listed on an online marketplace.

Municipal Regulations

Calgary Example

Short-Term Rentals in Secondary Suites

A short-term rental is defined as providing temporary accommodation for compensation in a home or part of a home for up to 30 days. Note that businesses with a bed and breakfast permit are not classified as short-term rentals.

Licensing System

Calgary has a two-tiered licensing system for short-term rentals:

Tier 1: For hosts offering 1 to 4 rooms for rent, the license fee is $100 per property.

Tier 2: Hosts must comply with regulations outlined in the Business License Bylaw, including:

• Maximum Guests: A host cannot allow more than two adults per room (excluding minors).
• Advertising: Hosts must include their business license number in any advertising for their short-term rental property.
• Emergency Contact: Hosts must display the name, phone number, and email address of an emergency contact person available 24/7.

Fines for Non-Compliance**: The City of Calgary prioritizes voluntary compliance with bylaws, working with hosts to ensure adherence1.

City of Edmonton

Proposed bylaws licensing short-term rentals.

Registration and Licensing

• • Quebecers who rent out their homes on a short-term basis (less than 31 days) are required to obtain a registration number through the province.
  • The registration number is available “easily and at a reasonable cost” of between $50 and $751.
  • Landlords must obtain an establishment number from the Government of Quebec to lease a primary residence for a short term. This number must be visible in any advertisement or announcement related to the short-term rental of a property.

Tax Obligations

If you provide short-term accommodations in Quebec (such as renting out your condo or cottage for short periods using social media or digital accommodation platforms), follow these steps to meet your tax obligations:

• • • • Step 1: Register your tourist accommodation establishment.
      • Step 2: Register for the tax on lodging.
      • Step 3: Register for the GST and QST (Goods and Services Tax and Quebec Sales Tax).
      • Step 4: Collect and report the GST and QST for short-term accommodations.
      • Step 5: File your income tax return.

Depending on the type of accommodation you offer, there may be other tax obligations. For more information, see Other Tax Obligations From Operating a Tourist Accommodation Establishment.

Additional Considerations:

• • In the province of Quebec, any individual who offers at least one accommodation unit for 31 days or less for rent to tourists, in return for payment, must acquire a classification certificate from Tourisme Québec

Registration and Licensing

• • Quebecers who rent out their homes on a short-term basis (less than 31 days) are required to obtain a registration number through the province.
  • The registration number is available “easily and at a reasonable cost” of between $50 and $751.
  • Landlords must obtain an establishment number from the Government of Quebec to lease a primary residence for a short term. This number must be visible in any advertisement or announcement related to the short-term rental of a property.

Tax Obligations

If you provide short-term accommodations in Quebec (such as renting out your condo or cottage for short periods using social media or digital accommodation platforms), follow these steps to meet your tax obligations:

• • • • Step 1: Register your tourist accommodation establishment.
      • Step 2: Register for the tax on lodging.
      • Step 3: Register for the GST and QST (Goods and Services Tax and Quebec Sales Tax).
      • Step 4: Collect and report the GST and QST for short-term accommodations.
      • Step 5: File your income tax return.

Depending on the type of accommodation you offer, there may be other tax obligations. For more information, see Other Tax Obligations From Operating a Tourist Accommodation Establishment.

Additional Considerations:

• • In the province of Quebec, any individual who offers at least one accommodation unit for 31 days or less for rent to tourists, in return for payment, must acquire a classification certificate from Tourisme Québec

Registration Requirement

• • As of April 1, 2023, all short-term rentals in the province, including those within people’s homes, must register annually with the Tourist Accommodations Registry.
  • The registration number obtained must be included in their online booking platform listings.
  • These changes aim to provide a clear understanding of short-term rentals in Nova Scotia and give municipalities access to information for enforcing land-use bylaws.
  • Previously, there was an exemption for short-term rentals operated in or attached to the host’s primary residence, but this exemption has been removed. 

Definition of Short-Term Rentals:

• • Short-term rentals are defined as roofed tourist accommodations provided for 28 days or less. This includes both traditional accommodations (such as hotels, motels, inns, and B&Bs) and housing stock (such as residential homes, condos, and apartments).
  • The primary residence is defined as the home where someone lives as an owner or tenant, and it is also the address used for bills, identification, taxes, and insurance.

Responsibilities for Marketing Platforms

• • Marketing platforms like Airbnb and Vrbo must ensure that only operators with a valid registration number are selling short-term rentals through their platforms.
  • These platforms are also required to share information covered under the Tourist Accommodations Registration Act with the province to support enforcement.

Registration and Licensing

• • Quebecers who rent out their homes on a short-term basis (less than 31 days) are required to obtain a registration number through the province.
  • The registration number is available “easily and at a reasonable cost” of between $50 and $751.
  • Landlords must obtain an establishment number from the Government of Quebec to lease a primary residence for a short term. This number must be visible in any advertisement or announcement related to the short-term rental of a property.

Tax Obligations

If you provide short-term accommodations in Quebec (such as renting out your condo or cottage for short periods using social media or digital accommodation platforms), follow these steps to meet your tax obligations:

• • • • Step 1: Register your tourist accommodation establishment.
      • Step 2: Register for the tax on lodging.
      • Step 3: Register for the GST and QST (Goods and Services Tax and Quebec Sales Tax).
      • Step 4: Collect and report the GST and QST for short-term accommodations.
      • Step 5: File your income tax return.

Depending on the type of accommodation you offer, there may be other tax obligations. For more information, see Other Tax Obligations From Operating a Tourist Accommodation Establishment.

Additional Considerations:

• • In the province of Quebec, any individual who offers at least one accommodation unit for 31 days or less for rent to tourists, in return for payment, must acquire a classification certificate from Tourisme Québec

Registration and Task Force

• • New Brunswick’s housing minister, Jill Green, has pledged to create a task force on regulating short-term rentals. This task force aims to bring the province together with municipalities to look at regulations.
  • Approximately 0.7% of housing stock (equivalent to 3,400 units) across the province is used for short-term rentals. While this may not seem significant from a provincial perspective, it has varying impacts on cities like Saint John, Fredericton, Moncton, and Saint Andrews.
  • The task force will address safety, appropriate taxation, zoning, and inspection requirements for short-term rentals.

Existing Regulation in Fredericton

• • Fredericton is currently the only jurisdiction in New Brunswick with any sort of regulation related to short-term rentals.
  • The bylaw in Fredericton states that property owners can only rent out units for periods of less than 28 days if they live in the same building.

Different Approach from Last Year

• • The task force’s work is expected to differ from a review conducted last year by the Department of Tourism, Heritage, and Culture.
  • The previous review focused more on tourism aspects, whereas the new task force will consider housing-related concerns.

Safety and Inspections

• • Moncton City Council has been advocating for rules that prioritize safety and inspections for short-term rentals, especially after a deadly fire at an Airbnb in Montreal.
  • The commitment by Minister Jill Green to create a task force is a welcome step in addressing these issues1.

While there are no specific regulations governing short-term rentals at the provincial level in Saskatchewan, various municipalities have established their own rules to ensure responsible, sustainable operations. Let’s delve into the guidelines for short-term rentals in two key urban centers: Regina and Saskatoon.

Regina

• • The city of Regina does not have specific provincial regulations for short-term rentals. However, it’s essential to comply with local guidelines.
  • If you’re considering running a short-term rental business in Regina, ensure responsible operations and adhere to safety standards.
  • Keep an eye out for any future regulations that may be introduced at the municipal level.

Saskatoon

• • Saskatoon, like many other cities, regulates short-term accommodations (less than 30 days) to ensure safety and neighborhood compatibility.
  • There are two relevant categories for short-term rental hosts:
    • Homestays: These are short-term rental accommodations in the host’s principal residence (including secondary suites where the host lives in the main home on the property).
      • Guest Limits:
        • One-unit dwelling: Up to 6 guests
        • Secondary suite: Up to 3 guests
        • Duplex, townhouse, apartment, or condominium: Up to 2 guests
      • On-site Parking: 2 hard surface spaces (except for specific zoning districts)
      • Hosts must obtain a commercial business license for hosting guests in secondary suites or accommodating more than two guests in their home.
      • A host declaration is required as part of the business license application, confirming compliance with safety requirements.
    • Short-Term Rental Properties: These are rental accommodations in homes that are not the host’s principal residence.
      • Discretionary Use Approval:
        • Required for short-term rental properties in certain residential zoning districts (R1, R1A, R1B, R2, R2A, RMHL, RMTN, RMTN1, RM1, RM2, RM3, and RM4).
        • Apply via the Discretionary Use Application form.
      • Guest Limits: Up to 6 guests
      • On-site Parking: 1 hard surface space (except for specific zoning districts)
      • Host Declaration: Required (same document as described for homestays)

In Newfoundland and Labrador, new regulations have been introduced to govern short-term rentals, including platforms like Airbnb. Here are the key points:

Registration Requirement

• • All short-term accommodations, such as Airbnbs or other similar rentals, must register with the provincial government.
  • The former Tourism Establishment Act has been renamed the Tourism Accommodations Act.
  • Existing accommodations licensed by the Department of Tourism, Culture, Arts, and Recreation will be automatically registered under the new regulations.
  • Unlicensed operators must register by March 31, 2024.
  • The registration process is free.

Enforcement

• • If accommodations are not registered by the deadline, the province will collaborate with online marketing platforms to prevent unlicensed accommodations from being advertised.
  • After March 31, 2024, unregistered accommodations will no longer have access to these platforms.

Reasons for Change

• • The update aims to modernize the existing legislation (originally introduced in the 1970s) to better reflect the current tourism industry.
  • Unlicensed accommodations can lead to safety concerns, and this move ensures a level playing field for all operators.

Statistics

• • Data from Destination St. John’s indicates that there are over 800 unlicensed operators on the northeastern Avalon Peninsula alone.
  • These operators booked 68,000 room nights and generated $14 million in revenue last year.

This regulatory shift is a step toward creating a fair and professional environment for both traditional and non-traditional tourism operators in Newfoundland and Labrador.

On Prince Edward Island, any temporary guest accommodation that operates for a continuous period of less than one month, be it marketed via a booking site like Airbnb or any other means, must be licensed as a tourism property.

The Tourism Industry Act and regulations describe the types of properties, minimum safety, services and amenity standards and other requirements for a licence.

The Short-Term Rental (STR) amendment to the Zoning and Development Bylaw came into effect March 28, 2023, meaning that those wishing to rent their primary residence, either by room or as a whole, now need to meet the new zoning regulations as well as have a license from the Province of Prince Edward Island.

Charlottetown City Council voted on this bylaw amendment February 15 and February 28, 2022, and approved the regulations with the amendment that they not come into effect for a year and a month; the year grace period has now ended for operators.

While the zoning bylaw is now in effect, the City’s STR licensing system will launch at the end of this tourist season, October 31, pending a council approved licensing bylaw. The delay in licensing is to ensure an effective system roll-out and will not interfere with enforcement of the short-term rental amendment to the Zoning and Development Bylaw.

People who would like to rent a room in or the entirety of their primary residence will require a license from the Province of Prince Edward Island and will need to conform with the City of Charlottetown Official Plan and the Zoning and Development Bylaw requirements.

For more information about short term rentals, visit: charlottetown.ca/cms/one.aspx?portalId=10500387&pageId=16539166

In the Northwest Territories, regulations governing short-term rentals are essential to ensure responsible and sustainable operations. Let’s explore the relevant aspects:

Registration Requirement

• • All short-term accommodations, including platforms like Airbnb, must register with the provincial government.
  • The former Tourism Establishment Act has been renamed the Tourism Accommodations Act.
  • Existing accommodations licensed by the Department of Tourism, Culture, Arts, and Recreation will be automatically registered under the new regulations.
  • Unlicensed operators must register by March 31, 2024.
  • The registration process is free.

Enforcement

• • After the deadline (March 31, 2024), unregistered accommodations will no longer have access to online marketing platforms.
  • Collaborative efforts with these platforms will prevent unlicensed accommodations from being advertised.

Reasons for Change

• • The update aims to modernize existing legislation (originally introduced in the 1970s) to better reflect the current tourism industry.
  • Unlicensed accommodations can lead to safety concerns, and this move ensures a level playing field for all operators.

By implementing these regulations, the Northwest Territories aims to create a fair and professional environment for both traditional and non-traditional tourism operators

After two years of study and discussion, the Yukon City Council on Aug. 1 voted 5-0 to approve adoption of the Yukon Unified Development Code and Zoning Map.

The document regulates development within Yukon’s municipal boundaries “with the specific intent to establish land use regulations for the City of Yukon.”

The city’s 147-page development code includes a section that specifically regulates short-term rentals – commonly referred to as “Airbnb” or “Vrbo” online vacation rentals.

Short-term rental operators violating the new code are subject to stiff fines and face revocation of required permits and licenses.

The newly adopted Unified Development Code requires short-term rental operators to “obtain and maintain a city-issued short term rental license.”

All property owners within 600 feet will be notified about any request for a special use permit for a short-term rental in their neighborhood.

The code reads:

• Use of the short-term rental for any commercial or social event is prohibited.
• A licensee or guest of a short-term rental shall not use or allow use of sound equipment, amplified music and/or musical instruments.
• A licensee of guest of a short-term rental shall not violate any parking ordinance, noise ordinances or any other ordinances of the City of Yukon Municipal Code.

Among information that short-term rental operators must post on the property and provide to renters/guests are:

The license number and expiration date, the operator’s and property manager’s names and phone numbers, location of off-street parking spaces available for guests, occupancy limits, and floor plan with fire exit and escape routes.

Section 904 of the Unified Development Code specifies fines for violating any terms of the short-term rental license: $250 per day for the first violation, $500 per day for the second violation and $750 per day for the third violation.

Anyone advertising a property for short-term rental without first having obtained a special permit and short-rental license also is subject to fines: $200 per day for the first violation, $400 per day for the second violation and $650 per day for the third violation.