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

In downtown Toronto, the legality of renting out a home without a permit primarily depends on the type of rental and the duration. For short-term rentals, defined as rentals for periods of less than 28 consecutive days, Toronto requires homeowners to register with the city and obtain a valid permit. This regulation was implemented to manage the impact of short-term rentals on housing availability and neighborhood dynamics. Homeowners must also pay a Municipal Accommodation Tax (MAT) on all short-term rental bookings. For long-term rentals, there are generally no specific permit requirements, but landlords must comply with provincial laws such as the Residential Tenancies Act, which outlines the rights and responsibilities of landlords and tenants.

Trivia: Toronto’s regulation of short-term rentals was influenced by similar regulatory approaches in cities like New York and San Francisco, where housing shortages prompted strict controls on short-term leasing.