Navigating Toronto's 180-Day Short-Term Rental Rule: What It Means for You
With soaring prices in the Toronto Real Estate market, governments are trying to find new ways to prevent investors from taking over. Over the last several years, investors have seen Short-Term Rentals as a great investment. What was initially meant to help homeowners gain some extra cash with sites such as AirBnB very quickly turned into a full-time business for some investors.
That brings us to Toronto's 180-Day Short-Term Rental Rule. The city’s 180-Day Short-Term Rental Rule is one of the key policies affecting property owners, investors, and renters. Here’s what you need to know about this rule and how it impacts you.
What is the 180-Day Short-Term Rental Rule?
Toronto’s 180-Day Short-Term Rental Rule was introduced as part of the city’s efforts to regulate STRs, such as those listed on Airbnb and other similar platforms. Under this rule:
Primary residences only: Only properties that serve as a person’s primary residence can be used for short-term rentals.
180-day cap: Hosts can rent out their property for a maximum of 180 nights per year on a short-term basis (less than 28 consecutive days per rental).
Registration required: All short-term rental hosts must register their property with the city and obtain a license.
These regulations aim to balance the growing demand for short-term accommodations with the city’s long-term housing needs.
Why Was This Rule Introduced?
Toronto's STR market has been booming in recent years. While platforms like Airbnb offer flexibility for homeowners and affordable options for travellers, they also contribute to reduced availability in the long-term rental market. By capping short-term rentals at 180 days, the city seeks to:
Protect long-term renters: Prevent the conversion of potential long-term rental units into full-time short-term rentals.
Maintain community balance: Address concerns about neighbourhood disruptions caused by constantly changing guests.
Ensure housing availability: Encourage property owners to prioritize long-term housing solutions such as conventional rental contracts.
How Can Unna Real Estate Group Help?
Whether you’re looking to invest, rent, or buy, understanding the implications of this rule is essential for making informed decisions.
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