The rules for short-term rentals will be updated once again in the Spring of 2020. AirBnB is the most utilized platform that allows people to live in their residence as they would a hotel for no more than 27 days, with a maximum total of 180 days each year. Now owners will be required to register with the city and pay a Municipal Accommodation Tax (MAT) of 4%. There will also be a $50 annual registration fee added on. All properties will be issued a registration number which must be presented on all advertisements.
Initially, any homeowner could rent out any number of their properties for as long as they desired. The number of days has decreased and only a primary residence is allowed to be temporarily lived in. This was developed in an effort to create more affordable housing for citizens of the city through having more permanently rentable properties available, resulting in a slower climb of prices.
An exact date is not set yet, in the following days the City of Toronto will update it’s website: https://www.toronto.ca/community-people/housing-shelter/rental-housing-standards/short-term-rentals/. Investors should be prepared when this does arrive to avoid any potential charges. If your property is available on a short-term rental platform, it’s best to keep your eyes on the policy to see if there any additional changes.
Even with the new, stricter rules this is still a strong investment for people who want to gain additional income on their principal residence. We are already starting to see many owners of multiple properties move to having more permanent tenants. This has resulted in more legwork users, we’ll see in the coming weeks how this influences those who profit from short-term rentals.