As the sharing economy continues to grow in popularity, Airbnb has become a popular option for property owners looking to generate additional income. However, Airbnb rules in Canada can vary greatly depending on the location, making it important for hosts to be aware of local regulations. In this blog post, we will take a closer look at Airbnb’s host legal and Airbnb host regulation in several Canadian cities.
In Ottawa, hosts must obtain a $110 host permit from the city and adhere to a set of tougher standards. The property being rented out must also be the host’s primary residence, and short-term rental licenses are only available to corporations. Hosts must respond to nuisances that arise during the rental period and ensure guests are aware of applicable restrictions and occupancy limitations. Violators may face fines of up to $100,000 for each offense, and permits can be revoked.
In Vancouver, all short-term rental operators must have a business license and disclose their license number in all online postings and advertisements. Only major residences or secondary homes or basement suites, where the operator lives full-time and it is their principal residence, are permitted. Ancillary buildings or Rental 100 buildings are not permitted, and residences subject to the Empty Homes Tax are also prohibited.
In Toronto, short-term stays of less than 28 nights require a valid registration number or exemption listed. The City of Toronto charges a four percent Municipal Accommodation Tax (MAT) for stays of less than 28 nights. Airbnb has started collecting and submitting the MAT since January 1, 2021. Airbnb rental arbitrage in Toronto is another option, with an average host earning up to C$10,634 monthly for a 3-bedroom apartment in one of the city’s most profitable neighborhoods.
Montreal requires a certificate of categorization from the province for rentals of primary or secondary residences for less than 31 days. Licensing for businesses and taxes must also be considered. Airbnb rental arbitrage in Montreal can be lucrative, with an average monthly profit of C$3,741 for a 3-bedroom apartment in one of the city’s most profitable neighborhoods. Airbnb began automatically collecting the 3.5 percent lodging tax on behalf of hosts since October 1, 2017.
Quebec residents who rent out their properties for less than 31 days must obtain a registration number from the province. Condo owners and tenants must also obtain permission before renting out their property on a short-term basis. These regulations apply to the host’s principal abode, which is where they ordinarily reside.
In conclusion, while investing in short-term rental properties on Airbnb can be a lucrative investment method, it is important for hosts to be aware of local regulations. Consulting with an Airbnb host consultant or property management company can help ensure hosts comply with Airbnb’s host legal and regulations in their area, avoid potential fines or penalties, and ultimately maximize their investment.
