Last updated on September 4th, 2023
Your all in one guide to inform you about Airbnb rules in Canada. We have gathered and compiled data for 5 major cities to help you plan.
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Your all in one guide to inform you about Airbnb rules in Canada. We have gathered and compiled data for 5 major cities to help you plan.
- Last updated on
- September 4, 2023
What are the rules for Airbnb in Canada?
Airbnb rules in Canada are highly local by nature and vary from one location to another. Since Airbnb’s establishment in 2008, renting out holiday homes to short-term guests has become a popular option to generate money. Purchasing a rental property and renting it out on Airbnb is another popular real estate investment method.
While certain Airbnb rules in Canada appear to be logical choices for investing in short-term rental properties, they may have legal concerns. It could even enact harsh rules that make running an Airbnb business nearly impossible. Short-term rental regulations have been imposed in different cities across Canada in an effort to slow Airbnb’s fast expansion.
Ottawa
Airbnb rules in Ottawa state that anybody seeking to host a unit on Airbnb would require permission from the city. The government adopted a new bylaw governing policy where hosts must first get a $110 host permit from the city. They must follow a tougher set of standards.
To rent out their property under the new bylaw, the operator’s house must also be his or her primary abode. While Airbnb rental arbitrage in Ottawa is also an option to have a passive income, hosts are expected to earn an average of C$28,936 annually for a 2-bedroom property. The figure is confirmed by Airbtics.
A short-term rental is a residence available for rent for short-term rent in its entirety or part, according to the bylaw.
Short-term rental licenses are available to corporations. Permits for certain properties are not issued if a condo corporation, landlord, or social housing provider has filed an objection with the city.
If By-law and Regulatory Services require it, short-term rental hosts respond to nuisances that arise during the rental period. To help minimize nuisance during the rental time, hosts must convey applicable restrictions and occupancy limitations to their guests.
Violators, both the hosts and guests, might face fines of up to $100,000 for each offense. The operators’ permits can also be revoked.
Vancouver
Airbnb rules in Vancouver require all short-term rental operators to have a business license and disclose their license number in all online postings and advertisements. While Airbnb rental arbitrage in Vancouver is another option for hosts, they are expected to earn an average of C$29,197 annually for a studio-type bedroom property.
The rules for vacation rentals in Vancouver are as follows.
Permitted:
- Only operate from your major residence – the home where you live, as an owner or renter, and use it for bills, identification, taxes, and insurance.
- Secondary homes or basement suites if the operator lives there full-time and it is their principal residence.
Not Permitted:
- In ancillary buildings (such as a garage, art studio, trailer, or boat) or Rental 100 buildings.
- Residences that are subject to the Empty Homes Tax (the tax applies to homes that aren’t the owner’s primary residence or aren’t rented for an extended period of time). Airbnb offers both homeowners and visitors new options.
Looking for more Canadian cities?
If you are looking for other profitable cities, then go ahead and check out the best cities to invest in Canada!
Toronto
Airbnb rules in Toronto prohibit short-term stays (less than 28 nights at a time) for listings that do not have a valid registration number or exemption listed.
For stays of less than 28 nights, the City of Toronto charges a four percent Municipal Accommodation Tax (MAT). Since January 1, 2021, Airbnb has started collecting and submitting the MAT.
In addition to this, Airbnb rental arbitrage in Toronto is another way to earn money without owning a property. Airbtics’s data shows that an average host in Toronto can earn annual revenue of up to C$48,227 for a 3-bedroom apartment in one of the city’s most profitable neighborhoods.
Montreal
Airbnb rules in Montreal require a certificate of categorization from the province for rentals of primary or secondary residences for less than 31 days.
Quebec distinguishes between individuals who provide tourist accommodations in their primary residence and those who provide tourist accommodations outside of their primary location.
Hosts who do Airbnb rental arbitrage in Montreal earn an average monthly profit of C$24,708 for a 3-bedroom apartment in one of the city’s most profitable neighborhoods.
Here are some of the things that need to be considered:
Licensing for businesses– Certain enterprises in Montreal require a permission or certificate. Consider reviewing these regulations to see if they apply to your activity.
Taxes- In Montreal, a tax on lodging applies when an accommodation unit is rented for less than 31 consecutive days under Québec sales tax. Other taxes that may apply to residents renting out lodging units are collected by the province of Quebec and municipalities.
As of October 1, 2017, Airbnb has begun to automatically collect the 3.5 percent lodging tax on behalf of Airbnb Hosts. This tax is collected and sent to the Province of Quebec on all Airbnb bookings lasting fewer than 30 days.
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Quebec City
Quebec residents who rent out their properties for less than 31 days will be forced to have a registration number from the province. It is a must for short-term rental operators that even Airbnb is prohibited from displaying listings without registration numbers.
Before renting out their property on a short-term basis, condo owners must obtain the approval of their syndicate or condo association. Similarly, tenants will need to obtain permission from their landlord.
The regulations will apply to the host’s “principal abode,” where he or she ordinarily resides. The criteria for “secondary dwellings,” which include cottages and furnished apartments, are different. The renter must complete an extensive form and submit it to the Québec Corporation, which regulates the province’s tourism industry.
Rent management- Rent increases in Quebec may be subject to the rent control system run by the government.
Taxes- Under Quebec sales tax, tax on lodging applies each time an accommodation unit is rented for less than 31 consecutive days in most tourism regions in Quebec.
Calgary
The local city council passed revisions in Airbnb rules in Calgary the Business License BylawThe new rules already require a business license to operate short-term rentals, as well as the installation of other regulations. Hosts who want to operate in Calgary must apply for a business license either online or in person at city hall.
Business licenses in Calgary- are classified into two types:
- Tier 1: 1 to 4 rooms are available for rent.
- Tier 2: 5 or more rooms available for rent.
In Calgary, the following Airbnb rules apply to short-term rental owners:
- Hosts are unable to offer a room without one or more egress windows.
- A maximum of two adults per room, excluding minors, is allowed by the hosts.
- Hosts are not permitted to allow two or more reservations for the same dwelling to be made at the same time.
- In any promotion for a short-term rental, hosts must mention their business license number.
- The name, phone number, and email address of an emergency contact person who can be reached 24 hours a day, seven days a week must be posted.
- Hosts must retain a record in English and in an electronic format that the Chief License Inspector finds acceptable.
- Hosts are required to preserve permanent records of all transactions and present them to the Inspector upon request.
Short-Term Rental Data
Short-Term Rental Data
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