Close
Close

No products in the cart.

How to Apply for an Airbnb License in Toronto: A 2025 Guide

How to Apply for an Airbnb License in Toronto: A 2025 Guide

Published by Leonardo Calcagno

Guest post by Matt Barbuzzi of Park Place Properties

Toronto’s short-term rental market has undergone significant changes in recent years, with the city implementing comprehensive regulations that continue to evolve through 2025. The latest phase of short-term rental regulations implemented on January 1, 2025, has brought substantial fee increases and stricter enforcement measures. As we navigate these changes, understanding how to properly register and operate an Airbnb in Toronto has never been more important for hosts who want to stay compliant and maximize their rental income.

Understanding Toronto’s Short-Term Rental Framework

Before diving into the application process, it’s crucial to understand what constitutes a short-term rental in Toronto. The city defines a short-term rental as any accommodation rented for less than 28 consecutive days. Under current regulations, you can only rent your principal residence on a short-term basis – meaning the address where you live for most of the year and receive bills, taxes, and official correspondence.

The 2025 regulations maintain the distinction between entire-unit rentals (limited to 180 nights per calendar year) and partial-unit rentals (renting individual rooms with no night limit). These rules aim to prevent the conversion of long-term housing into permanent short-term rental properties.

Step-by-Step Application Process

1. Confirm Your Eligibility

Before applying, verify that:

  • The property is your principal residence
  • Your building permits short-term rentals (especially important for condos)
  • You haven’t had a registration denied or revoked within the past 12 months

Many buildings in Toronto prohibit short-term rentals in their bylaws. Before investing time in the application process, check with your property management or condo board. For condo owners, you can find a list of Park Place Properties that identifies Airbnb-friendly buildings across Toronto.

2. Prepare Required Documentation

For your application, you’ll need:

  • A valid Ontario Driver’s License or Ontario Photo Card with an address matching your rental property
  • The name and phone number of an emergency contact available 24/7
  • A completed consent form from your alternate contact
  • A valid credit card for the application fee (now $375 for 2025, up from $55.35 in 2024)
  • If you’re in a condo, proof that short-term rentals are permitted in your building

Note that as of 2025, the ID requirements are strictly enforced. If you’re new to Ontario or need to update your address, factor in 4-6 weeks to obtain proper identification before applying.

3. Select Your Rental Type

As of January 1, 2025, you must choose between registering as either:

  • An entire-unit short-term rental operator (renting your whole home, maximum 180 nights/year)
  • A partial-unit short-term rental operator (renting individual rooms while you continue to live in the home)

This selection will remain in effect for your entire registration period and can only be changed upon renewal. Partial-unit operators can rent rooms for an unlimited number of nights per year but are limited to renting one fewer than the total number of bedrooms in the home.

4. Complete the Online Registration

Visit the City of Toronto’s short-term rental registration portal to begin your application. Note that Toronto doesn’t require creating an account – their preferred method of communication is email. When filling out the form:

  1. Ensure the address listed matches your driver’s license EXACTLY
  2. Provide complete property details (ownership status, building type, rental portions)
  3. Enter your full name, driver’s license number, expiration date, and contact information
  4. Include emergency contact details (someone available 24/7 during guest stays)
  5. Review all information carefully before submission – errors will delay processing
  6. Pay the registration fee ($375 for 2025)

Remember, the City will suspend Airbnb listings with mismatched license information, so accuracy is crucial at this stage.

5. Prepare for Possible Interview

As of September 30, 2024, the City of Toronto implemented a new verification process. You may be required to attend an in-person interview with City staff, where you’ll need to provide additional documentation to verify your principal residence claim. This extra step is designed to reduce fraudulent applications and ensure only legitimate principal residences are registered.

6. Wait for Approval

Processing times vary based on application volume. While some applications are approved automatically, others requiring additional review may take up to 30 days. Once approved, you’ll receive a registration number via email that must be displayed on all your rental listings.

Post-Approval Requirements

After receiving your license, you must:

1. Display Safety Information

In your rental unit, prominently post:

  • Emergency contact information
  • Exit diagrams showing escape routes
  • Fire safety information

2. Collect and Remit Taxes

Short-term rental hosts must collect and remit the 6% Municipal Accommodation Tax (MAT) on all stays less than 28 nights. Check with your booking platforms to verify if they collect this tax on your behalf or if you’re responsible for remitting it directly.

3. Maintain Accurate Records

Keep detailed records of all your rentals, including:

  • Guest information
  • Dates of stays
  • Revenue generated

The City may request these records to verify compliance with the 180-night limit for entire-home rentals.

4. Renew Annually

Your registration is valid for one year from the approval date. For 2025, renewal costs have also increased from previous years but remain lower than the initial registration fee. Plan to renew at least a month before expiration to prevent any interruption to your hosting activities.

Common Pitfalls to Avoid

  1. Operating in non-permitted buildings: Many Toronto condos explicitly prohibit short-term rentals in their bylaws. Operating without permission can result in fines from both the City and your condo corporation.
  2. Misrepresenting your principal residence: The City has increased enforcement against hosts who falsely claim a property as their principal residence. The new interview requirement makes this harder to circumvent.
  3. Improper registration number display: Your registration number must be visible on all listings. Platforms may remove non-compliant listings.
  4. Exceeding night limits: For entire-home rentals, exceeding the 180-night limit can result in penalties and registration revocation.
  5. Renting more than allowed: Remember that you can only rent up to three bedrooms or your entire residence, depending on your registration type.

Long-term vs. Short-term Considerations

If you’re uncertain about committing to short-term rentals, note that stays of 28 nights or longer are considered long-term rentals and don’t require a license. This can be an alternative approach if you prefer fewer guests with longer stays.

The Future of Toronto’s Airbnb Market

As Toronto continues to refine its approach to short-term rentals, staying informed about regulatory changes is essential. The 2025 increase in registration fees to $375 (a dramatic rise from $55.35 in 2024) reflects the city’s commitment to more stringent oversight of this market.

The new requirements implemented in 2025, including the mandatory selection between entire-unit and partial-unit registration types, demonstrate Toronto’s evolving approach to ensuring short-term rentals don’t impact long-term housing availability. Host audits have also increased, with more frequent verification of principal residence claims.

Despite the stricter regulations, short-term rentals remain a viable income opportunity in Toronto when done correctly. The key is understanding and following the rules while providing exceptional guest experiences.

For hosts looking to maximize their returns while remaining compliant, working with a professional management company can help navigate the regulatory landscape while optimizing your property’s performance.

Matt Barbuzzi is CTO at Park Place Properties, a Toronto-based short-term rental management company specializing in helping hosts navigate regulations and maximize rental income. Learn more about Airbnb-friendly buildings at Park Place Properties.

 

Close
↓ THIS IS AN AD ↓
↓ THIS IS AN AD ↓