Is it legal to rent out a home without a permit in downtown Toronto?

In downtown Toronto, whether you need a permit to rent out a home largely depends on the type of rental and the duration for which the property is being rented. For long-term residential rentals, typically no specific permit is required beyond ensuring the property meets the Ontario Building Code and local zoning bylaws. However, if the home is being rented out as a short-term rental (less than 28 consecutive days), a permit is required. Since 2020, the City of Toronto mandates that all short-term rental operators must register with the city and pay a Municipal Accommodation Tax (MAT). This regulation was implemented to address the impact of short-term rentals on the availability and affordability of long-term housing.

Trivia: Toronto’s unique approach to managing short-term rentals includes a rule that only allows people to rent out their principal residence. This means that investment properties cannot be legally listed as short-term rentals, a regulation aimed at preventing a decrease in long-term rental stock.