Short-term rentals: Laws, restrictions, and overview

What are short-term rentals?

Short-term rentals are temporary stays in a home or condo unit, often booked online through services like Airbnb. In condo buildings, the steady turnover can feel more like ongoing guest traffic than a traditional tenancy, which can bring day-to-day challenges like building access control, extra noise, more wear on shared spaces, and added pressure on concierge or front desk staff.
 

Can condos restrict short-term rentals?

Yes, condo corporations in Ontario generally have the authority to restrict or ban short-term rentals, so long as they follow the required process and the restriction is properly grounded in the condo’s governing documents.
 

Pros and cons of short-term rentals in condo corporations

Short-term rentals can be a hot topic because there are real tradeoffs.
 

Potential benefits

• Extra income for owners in high-demand areas with rising condo fees
   
• Flexibility for owners who travel frequently
   
• Can reduce vacant units in the building
   
• Potentially higher revenues for condo corporations that impose short-term rental fees
   
• Expanded buyer pool for investors who look for buildings that allow short-term rentals

Common downsides

• Security concerns when fobs and access codes circulate
   
• More noise and complaints from frequent turnover
   
• More strain on staff and building operations
   
• Higher wear on amenities and common elements
   
• Less community culture when neighbours constantly change

Where to find your condo’s short-term rental rules

Before you list a unit, confirm what your condo corporation’s governing documents actually say. Most restrictions live in the declaration, bylaws, or rules and regulations. If you are not sure what applies, owners can request records from the corporation using the Condo Authority of Ontario’s records request process and forms, which is often faster than chasing old email attachments.
 

Common condo restrictions on short-term rentals in Ontario

Even when a building does not fully ban short-term rentals, it may control them by:

• Minimum lease term requirements of 6 to 12 months
   
• Requiring owners to provide tenant details and emergency contact information
   
• Requiring move-in bookings and elevator protection deposits
   
• Restricting amenity access for non-residents
   
• Enforcing guest limits, noise rules, and security protocols

These rules are usually meant to keep the building running smoothly and cut down on noise and disruptions.
 

Short-term rental laws in Toronto

Short-term rentals are regulated at the municipal level in Ontario, so the rules depend on your city. In Toronto, the rules are strict and very specific:

• Definition: Toronto generally treats a short-term rental as renting all or part of a home for less than 28 consecutive days.
   
• Principal residence requirement: In general, you can only operate a short-term rental if the home is your principal residence.
   
• Registration requirement: Operators must register with the city and follow the bylaw requirements.
   
• Night cap for entire-home rentals: Toronto caps entire-home short-term rentals at 180 nights per calendar year.
   
• Taxes and reporting: Short-term rentals in Toronto can also trigger the Municipal Accommodation Tax. Even if a platform collects and remits the MAT on your behalf, registered operators still have to file a MAT report for each reporting period. This is true even if you did not rent out your short-term rental for the reporting period.

Even when a city allows short-term rentals, that does not mean a condo building must allow them. Municipal permission is only one layer.
 

Insurance and liability: the common blind spot

Short-term rentals can change the risk profile of a unit. Owners should confirm, in writing, whether their condo insurance covers short-term rental activity, and whether additional coverage or an endorsement is needed.

From the corporation side, repeated short-term rental activity can also increase claims exposure and operational risk in common areas, which is why Ontario condo boards often treat this as a safety and liability issue, not just a rule issue.
 

What happens if someone violates the rules?

Most buildings start with a written compliance notice to the owner and may also notify the occupant if the corporation has their information. If the activity continues, the next step is usually a clearer demand to stop and a timeline to comply, supported by documentation like concierge logs, fob audit information, elevator bookings, or confirmed listings.

If it still does not stop, the corporation typically escalates through its formal enforcement process, which may include letters from legal counsel, cost recovery where appropriate, and an application to court for a compliance order in more serious cases.

Ontario’s Condominium Act requires owners and occupiers to comply with the Act and the corporation’s declaration, bylaws, and rules (s. 119(1)), and it places a duty on the corporation to take reasonable steps to enforce compliance (s. 17(3)). Because enforcement tools and fact patterns vary, boards typically coordinate with legal counsel when the issue is repeated, disruptive, or tied to safety.
 

How a condo management company can help

A strong condo manager helps boards handle short-term rental pressure points in a way that is organized and consistent. That includes tracking what the governing documents actually say, standardizing violation documentation, coordinating security and concierge workflows, and supporting compliance with Ontario short-term rental laws.

Management can also help the board stay proactive by identifying trends (noise calls, fob issues, amenity misuse), tightening building procedures where allowed (move-ins, guest access, elevator bookings), and coordinating with legal counsel when a restriction update or stronger enforcement is needed.
 

About FirstService Residential

FirstService Residential is a leading condo management company in Ontario, supporting condo corporations with local expertise backed by national resources. We provide full-service condo management across Ontario, including maintenance planning, financial management, and resident support. With our 24/7 customer care team and experienced local teams, we help simplify condominium operations and enhance community value.

Contact FirstService Residential today to learn how we can help your condo corporation thrive.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.