A Major Win for Hotels Against Airbnb in the City of Toronto

On December 7, the Toronto City Council passed legislation to regulate the short-term accommodation rental industry, allowing rentals only in one’s principal residence. Secondary suites will not be allowed.

This means that the commercial side of Airbnb’s hosts – those running multiple suites and homes – will no longer be allowed to operate under the platform of Airbnb. This will also apply to any other rental platform similar to Airbnb.

The Hotel Association of Canada is very pleased to see another major win for the hotel industry and wishes to congratulate Toronto City Council for this important step forward. Now two large cities, Toronto and Vancouver, and the province of Quebec, have taken strong legislative positions to limit the use of short-term rental platforms – a move that many other cities and provinces can follow.

This new law means that those offering short-term rentals must register with the city and will be required post the registration number with their online listing. Additionally, entire-home rentals will be capped at 180 nights per year.

Importantly, the Toronto regulations include an enforcement piece and a regulatory framework for short-term rental companies, like Airbnb, which will ensure platform accountability. This means that the platform owner will be responsible for removing short-term rental listings that do not comply with the new rules. This is of critical importance and a key component that needs to be included in every jurisdiction.

The Hotel Association of Canada would like to congratulate the Ontario Restaurant, Hotel & Motel Association, led by Tony Elenis, and the Greater Toronto Hotel Association, led by Terry Mundell. Through direct letters and participation in various stakeholder meetings and public hearings, their contributions and efforts played a pivotal role in ensuring that fair rules and regulations were put in place for the hotel sector.

The Hotel Association of Canada, with its Provincial and City Association partners, will continue to play a leadership role in ensuring that our industry is united, aligned and well-positioned to build off of wins like this.