Municipal Regulation of Short-term Rentals

The City of Toronto is taking steps to regulate short-term rentals.  Other municipalities may not be far behind.

Short-term rentals are a growing concern in many residential communities, including residential condominiums.

The City of Toronto is proposing new regulations to control short-term rentals.  Among other things, the new regulations would

  • introduce a new land use called “short term rental”;
  • permit short-term rentals only in a host’s primary residence;
  • require licensing of companies (like Airbnb) that facilitate short-term rentals, with related licensing fees;
  • require registration of short-term rental hosts and premises, with related registration fees;
  • impose specific safety requirements for short-term rentals;
  • perhaps also introduce new taxes on short-term rentals.

It stands to reason that other municipalities may follow suit.

However, these new municipal regulations don’t change the separate rights of condominium corporations – including rights to enforce existing provisions in the corporations’ declarations or rules (prohibiting or controlling short-term rentals in the condominium) or rights to amend their declarations or pass new rules (again, prohibiting or controlling short-term rentals in the condominium).

In other words:   Although municipalities may be taking steps to regulate short-term rentals, condominium corporations will still have their own separate rights to regulate or prohibit short-term rentals in their specific communities.  Condominium corporations concerned about short-term rentals should review existing provisions in their declarations and/or rules, and may wish to consider declaration amendments and/or new rules, to regulate or prohibit short-term rentals in their condominiums.

Stay tuned to Condo Law News for more blogs about amendments to the Condominium Act and upcoming events .