A short-term rental company is any company facilitating or brokering short-term rental reservations online and receiving payment for this service (such as Airbnb and Booking.com). All short-term rental companies are required to obtain a licence to operate in Toronto.
In addition to standard City of Toronto business licensing requirements, short-term rental companies must provide the following information:
Applicants are required to pay a one-time licence application fee of $5,000 and an ongoing fee of $1.00 for every short-term rental night booked through the company. The application fee is subject to an annual increase and is non-refundable.
In order to be licensed, a short-term rental company must:
Applicants can download the application for short-term rental business licence and email firstname.lastname@example.org to receive instructions on how to submit via secure file transfer.
If companies do not comply with the regulations, they are guilty of an offence. If convicted, they may be liable to pay a fine of up to $100,000.
Companies may also be liable to pay a special fine that a court deems is greater than any revenue that they may be gaining from their business; as well as a fine of up to $10,000 for each day the offence continues. Companies may also be charged a fine for the following offences:
|Failing to licence a short-term rental company||1000|
|Advertising, facilitating or brokering an unregistered short-term rental||1000|
|Failing to remove a listing for an unregistered short-term rental||1000|
|Failing to keep complete transaction record for 3 years||1000|
|Failing to keep record of removed short-term rental listing||1000|
|Discriminating based on enumerated ground||500|
|Refusing to serve a person accompanied by a service animal||500|
|Failing to notify the City of a change in licensing information||400|
|Failing to report non-compliance with screening criteria||300|
|Making a threat or reprisal for participation in a public process||300|
|Making a threat or reprisal against unlicensed business||300|
Registered short-term rental operators will be required to start collecting and remitting the four per cent Municipal Accommodation Tax (MAT) on a quarterly basis from January 1, 2021.
More information on how operators can collect and make the MAT payments themselves or via the company will be provided in fall 2020.
Short-term rental company licences must be renewed annually.
A renewal notice, identifying any documents required to renew the licence, will be mailed to the address on file.
If a short-term rental company fails to renew its licence according to the bylaw, the licence will be cancelled, and the company will have to reapply.