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Toronto is about to implement significant changes to its short-term rental regulations starting in 2024 and continuing into 2025. If you’re already in the market or thinking about becoming a host, here’s what you need to know.
Big Changes for 2024 and Beyond
Stricter Proof of Principal Residence (Effective September 2024): Starting in September, operators will need to provide at least two additional documents (like utility bills or a rental agreement) alongside their ID to prove that the rental is indeed their principal residence. This move targets people using loopholes to list investment properties. The City may also require operators to attend in-person interviews to verify eligibility, and annual inspections of all short-term rental properties will become mandatory.
Limit on Registrations: Only one registration will be allowed per dwelling unit, and if a registration is revoked, no new registration can be applied for that property for a full year. This is a major shift aimed at preventing workarounds that let people re-list properties under different names or entities.
Fee Increases Starting January 2025: The cost of registration will skyrocket from $55.35 to $375, which is a 677% increase. This is likely an attempt to discourage casual or part-time hosts and ensure only serious operators are in the market.
Rental Limits and Types: Hosts will need to decide between renting their entire home or just part of it. Entire homes can only be rented out for up to 180 nights per year, while partial rentals (such as rooms) can be rented for an unlimited number of nights, as long as no more than three rooms are rented out at a time.
Increased Enforcement: Toronto is also stepping up enforcement. There will be surprise inspections, and any listings that don’t follow these new rules will face severe penalties, including revocation of the ability to operate for a year.
What This Means for You
If you’re a current host: It’s crucial to get your paperwork in order. Proof of principal residence is non-negotiable, and the stricter vetting process means you’ll need to be ready for increased scrutiny. Take the upcoming fee hikes seriously too. If you’re a casual host who rents out your space only a few times a year, these increased costs could eat into your profits.
For potential hosts: The changes present both challenges and opportunities. With stricter
enforcement and higher costs, some hosts may leave the market, potentially reducing competition. If you can navigate the new regulations and prove your compliance, there’s a good chance of capitalizing on the increased demand.
Overall, these new rules signal a clear shift by the City of Toronto to rein in short-term rentals, protect the housing supply, and ensure that only legitimate, principal residences are being rented out. Make sure you’re prepared for these changes to avoid costly fines or losing your right to operate
NextNest can help you navigate the coming wave of regulations in short term rentals
As Toronto’s new short-term rental regulations roll out, hosts will face stricter rules, higher fees, and more scrutiny to ensure compliance. That’s where NextNest steps in. Our service is designed to help you navigate these changes seamlessly while maximizing your rental income. We handle everything—from securing the required permits, managing guest communications, to ensuring your home is ready for inspections. With these upcoming regulations, only primary residences can be rented, and we ensure that your listing meets all the city's new requirements, including the 180-night limit for whole-home rentals
By partnering with NextNest, you can focus on your travels while we handle the compliance and logistics, helping you continue to earn without the hassle of managing new complexities. Let us do the heavy lifting, so you can keep hosting without worry
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