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Airbnb Rules in Toronto

Last updated on June 22nd, 2023

If you are looking to buy investment properties in Canada, knowing the Airbnb rules in your preferred city is the first step. It’s also important to consider the occupancy rates in Canada in order to have successful investment & long-term profitability! In this article, we featured Airbnb regulations in Toronto along with short-term let policies, rental properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Toronto.

Is Airbnb legal in Toronto

Don’t worry, Airbnb is legal in Toronto! This city is home to beautiful museums and is known for its global competitiveness. It is also consistently ranked when it comes to cities with the best quality of life! 

Here is a little proof! As of August 2022, there are 102,629 nights available in Toronto from Airbnb alone. Simply Comfort manages 55 listings, while Julie and Alec & Lily operates 42 and 39 respectively. 

How much can I make by running an Airbnb in Toronto?

Currently, there are 8,456 Airbnb listings in Toronto, with 39% of entire houses earning up to C$3,834 a month. The Average Occupancy Rate in Toronto is 54% and the average daily rate is C$170. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Toronto can make up to C$52,925 each year. Check out our Free Airbnb Calculator

Toronto airbnb rules
Short-term Rental Policy in Toronto
  • Short-term rental operators must register with the City in order to operate in Toronto.
  • It is required to collect and remit a four per cent (4%) Municipal Accommodation Tax (MAT) on all rentals.
  • Hosts will also need to provide the name and telephone number of an emergency contact person who will be available 24 hours a day during rental periods. The city of Toronto will also require that hosts keep all records of short-term rental activity which will need to be provided to the city upon request.
  • Under the new rules, Torontonians will only be able to host short-term rentals in their principal or primary residence, with homeowners and tenants both able to participate.
  • Hosts will also need to ensure that their property is located in a residential zone, or the residential component of mixed-use zones.
  • Hosts renting their entire home while they are away will only be able to rent their entire home for a maximum of 180 nights per year. While there is no limit of nights for renting private rooms, a host can only rent up to three bedrooms if they are renting multiple rooms in their residence.
how much can you make on airbnb

Rental Demand in Toronto

There are many hosts who are doing rental arbitrage in Canada as it does not require you to own a property. Based on a recent Toronto rent report, Toronto experienced a 24% growth year over year! 

Toronto airbnb rules

Source: Toronto Rental Demand

Property Investment in Toronto

If you are looking to start an Airbnb business in Canada, particularly in Toronto, you have to consider which areas are the most profitable. Whether it is located in the city centre or in the countryside, knowing your estimated annual revenue and high-return investment opportunities is important. Using an accurate short-term rental calculator, it shouldn’t be a difficult task at all!

Rental Properties in Toronto

Once you have decided to buy a property, you have to consider the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. It could be a challenge to find rented properties in Toronto, so here are some of the most recommended areas that you can look into & consider purchasing:

Area Average House Price Average Rent Price (pcm) Average Airbnb Revenue
Liberty Village C$725,000 C$1,695 C$2,847
King West C$597,500 C$2,375 C$3,179
York Ville C$726,990 C$2,400 C$3,084


In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15-30% gross rental yields, and 10-20% net. It’s also fun to do! 



Airbnb Data
Airbnb Data

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