Pumping the Brakes: New Regulations Aim to Limit the Impact of Short-Term Rentals in Toronto
The rise of the “sharing economy” has spawned many new industries, but perhaps one of the most prominent (together with ride sharing) has been the explosion in “vacation rental by owner” services, led most prominently in Canada by Airbnb. These short-term rental platforms operate worldwide, generally without regulation. The City of Toronto (the “City”), however, is seeking to change this trend. On June 12, the City’s Municipal Licensing and Standards division released a number of proposed regulations that could seriously impact the short-term rental market in Toronto. These regulations aim to increase the availability of permanent affordable rental housing by curbing the number of short-term rentals available, especially in the downtown core.