Are There New Legal Requirements for Managing Short-Term Rentals in Ontario?

The landscape for short-term rentals in Ontario is rapidly evolving. With tourism flourishing and the gig economy on the rise, the demand for temporary housing has never been higher. But with great demand comes great responsibility, particularly when it comes to the legalities of short-term leasing. As a leading expert in property management, Royal York Property Management is at the forefront, guiding property owners through these new legal corridors.

Ontario's Broad Authority on Short-Term Rentals:

The Municipal Act and City of Toronto Act have granted cities considerable power to regulate short-term rentals. This includes setting parameters on where these rentals can operate, the necessary licenses for hosts, and taxation​.

Toronto's Take on Short-Term Leases:

In Toronto, a temporary rental unit is defined as a dwelling rented out for less than 28 consecutive days. The city mandates that all such units must register online and comply with specific eligibility requirements. Notably, the rental must be the host's primary residence, and various types of housing are eligible under this scheme​​.

Taxation and Guest Management:

Operators are required to collect a 6% Municipal Accommodation Tax in Toronto and maintain records on guest numbers and rental durations. This fiscal responsibility is crucial to remain compliant with local regulations​​.

Ottawa's Bylaw and Registration:

Ottawa has introduced a bylaw for short-term rentals, with a detailed registration process that includes providing proof of primary residence and insurance, alongside a floor plan of the unit​​.

Insurance and Liability:

A million-dollar liability insurance policy is the bare minimum for hosts, ensuring that both the property owner and the occupants are safeguarded against potential damages and legal disputes​​.

Royal York's Expertise:

Navigating these rules can be a daunting task for any property owner. Royal York Property Management provides an umbrella of services that cover every aspect of these new regulations, from assisting with the registration process to ensuring tax compliance and advising on the right insurance coverage.

With the new legal requirements in Ontario for managing short-term rentals, partnering with a knowledgeable property management firm like Royal York is more than a convenience—it's a necessity. We ensure your rental operations meet all legal benchmarks, allowing you to focus on what you do best: providing exceptional short-term rental experiences.

To keep your short-term rental business ahead of legal complexities and in step with industry best practices, reach out to Royal York Property Management. Our team is ready to elevate your property management to new heights of excellence and compliance.