Short-term rentals continue to attract Toronto homeowners looking to increase rental income, but operating an Airbnb in the city is governed by strict municipal regulations. For property owners, understanding these rules is not optional—it is the foundation of a sustainable and profitable short-term rental strategy.
This 2026 compliance-focused guide explains how Airbnb legality works in Toronto, what property owners must do to remain compliant, and how a professional Airbnb management company like Stayfinity helps owners operate legally while maximizing returns.
Yes, Airbnb is permitted in Toronto—but only under clearly defined conditions.
The City of Toronto allows short-term rentals exclusively within a host’s principal residence. Properties that do not meet this requirement are not legally eligible for Airbnb or other short-term rental platforms.
Toronto actively enforces these regulations, and non-compliance can lead to fines, delisting, and long-term restrictions.
To legally operate a short-term rental in Toronto, the property must qualify as your principal residence.
This means:
You live at the property for most of the calendar year
The address appears on official documentation such as ID, tax records, or utility bills
The property is not used solely as an investment or secondary residence
A condo or house you primarily live in
A basement apartment or secondary unit within your main home
A portion of your residence rented while you remain on-site
Standalone investment properties
Multiple Airbnb listings under one owner
Vacant properties or short-term-only units
All Airbnb hosts in Toronto must register with the city and renew their registration annually.
Proof of principal residence status
Government-issued identification
Payment of the city’s registration fee
Accurate host contact information
Once approved, the city issues a Short-Term Rental Registration Number, which must be clearly displayed on:
Airbnb listings
Any digital or promotional rental advertising
Listings without valid registration numbers are subject to removal.
Toronto’s bylaws distinguish between renting part of your home and renting the entire residence.
Partial-home rentals: No annual night limit
Entire-home rentals: Maximum of 180 nights per year
Additional compliance requirements include:
Adhering to noise, waste, and nuisance bylaws
Meeting property safety and maintenance standards
Complying with condo board or HOA regulations where applicable
The City of Toronto maintains an active enforcement program for short-term rentals.
Property owners who fail to comply may face:
Financial penalties of up to $100,000 per violation
Immediate listing suspension or removal
Loss of registration eligibility
Legal proceedings for repeat or serious offences
Many violations occur due to misunderstanding the rules or relying on outdated information.
Managing Airbnb compliance in Toronto requires constant attention to regulatory details. Stayfinity, a professional Airbnb management company, supports property owners by ensuring their short-term rentals operate within legal boundaries.
Our compliance-focused services include:
Registration setup and annual renewals
Principal residence documentation support
Accurate and compliant listing creation
Guest screening and noise monitoring
Coordination with condo boards and city requirements
This approach reduces risk while allowing owners to benefit from short-term rental income.
Yes—when structured correctly.
Compliant, professionally managed Airbnbs often outperform traditional rentals due to:
Market-driven pricing strategies
Higher-quality listings and visibility
Strong guest satisfaction and repeat bookings
Reduced operational and legal risk
The key to success is aligning legal compliance with professional management expertise.
Airbnb remains a viable income strategy in Toronto for homeowners who meet principal residence requirements and follow city regulations. Understanding the rules, registering correctly, and maintaining compliance are essential to protecting your investment.
For property owners seeking a hands-off, legally compliant Airbnb solution, professional management provides clarity, protection, and performance.
Stayfinity helps property owners navigate regulations, optimize revenue, and operate with confidence.
Request a complimentary compliance and income review today.
Reach out to Stayfinity Team to learn more:
Website: www.stayfinity.co
Email: info@stayfinity.net
Call/Text/Whatsapp: +1 647-691-3272
“I’ve been working with Stayfinity and team for a couple years! Excellent company and a breeze to deal with. They have managed my property very well and handled any and all issues for me. Highly recommend their property management services. Don’t hesitate to use them..”
– Aaron, Homeowner
“Excellent team to work with, great professionals, prompt and helpful in managing the property issues”
– Ravinder, Investor
