Are you looking to purchase a home in order to rent it out? Do you wish to rent out your current home? If so, we encourage you to speak with a lawyer who can best advise you on how to do this properly.
Those looking to purchase a property in Toronto with the intent to rent it out on a short term basis should seek legal advice to ensure that they are up to date on all the current rules and regulations. The team at Hummingbird Lawyers LLP is not only aware of the new short-term rental rules in the City of Toronto, but we are able to effectively advise our clients before buying a property with the intent of short-term rental.
Only registered operators can short-term rent in the city of Toronto. The valid City-issued registration number must be included in all advertised listings (in the format: STR-0000-XXXXXX). Our team of lawyers for real estate will ensure that this is executed properly, so that our clients are in compliance, and they won’t have unnecessary troubles down the road.
What Is A Short-Term Rental Operator?
Simply defined, a short-term rental operator is anyone who is renting their home (or room/rooms in their home) for a period of less than 28 consecutive days.
Registration for short-term rental operators was due by December 31, 2020. Future operators will be able to register on an ongoing basis but must do so before short-term renting their homes. Speak to our team if you have any questions on how to do this, or to make sure you’re in compliance. Non-compliance can be quite costly.
If an operator does not comply with the regulations, they are guilty of an offence and if convicted may be liable to pay a fine of up to $100,000. Additionally, they may 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. They may also be charged a fine under 19 new offences. We can ensure that you’re set up properly in order to avoid these pitfalls.
All registered operators must comply with the regulations, including collecting and remitting a four per cent Municipal Accommodation Tax (MAT) on all rentals that are less than 28 consecutive days.
What Is The Registration Fee For Short Term Rental
The registration and renewal fee is present $50 per year, payable only by valid credit card.
The first phase of the Airbnb City Portal directly connects local governments to the Airbnb platform, providing real-time details about specific rentals and remitted tourist tax revenue. This pilot project has been implemented in a number of cities. Toronto is currently not included, but our lawyers are up to speed with regulations as they change, to ensure that our clients are well informed.
Other short-term rental companies may provide the same functionality. It is easy for cities to monitor advertisings for compliance or follow-up on complaints from neighbours. All short-term rental companies are required to obtain a licence to operate in Toronto.
For further information, including the regulations, an operator`s guide and registration see the article on the city of Toronto website or the by-law adopted by the Council of the City of Toronto May 24, 2018 by By-law 613-2018, which came into effect on November 18, 2019
If you’re looking for skilled and experienced lawyers in Vaughan or lawyers in Toronto, Hummingbird Lawyers LLP has offices at each location for your convenience.