🍁 STRisker Canada (2)
Stay in the know on Canada’s short-term rental scene. Bringing you the latest updates and news on policies from coast to coast, we spotlight the trends redefining the industry.
Toronto City Council has approved a temporary increase to its Municipal Accommodation Tax, raising it from 6% to 8.5% to help fund the city’s 2026 FIFA World Cup hosting costs.
The hike, effective next summer through July 2026, is expected to generate $56 million toward a $95-million shortfall in the city’s event budget. The tax will apply to both hotel rooms and short-term rentals, ensuring visitors contribute to the hosting expenses.
Oak Bay is preparing to loosen its short-term rental rules, with council voting Oct. 20 to draft a bylaw allowing residents to rent out their homes for up to 60 days a year.
The proposal would permit short-term rentals in principal homes, suites, and accessory dwellings, requiring a $100 business licence and self-reported safety inspection. While officials say the move aligns with modern hosting trends, critics warn it could worsen Oak Bay’s housing shortage by diverting units from long-term rentals.
Collingwood’s short-term rental licensing program is proving highly effective just 10 months after launch, with the number of active rentals dropping by over 75%—from 354 to 87—and long-term rental listings nearly tripling.
Town officials credit strict enforcement and cooperation with platforms like Airbnb and Vrbo for driving compliance, noting that all recent complaints involve unlicensed operators. Council now wants platforms to require license numbers on listings to “level the playing field,” as staff report the bylaw is reducing unregulated activity and helping stabilize the local housing market.
Muskoka, ON
Lake of Bays has become the latest Muskoka township to adopt a 4% municipal accommodation tax (MAT), joining Huntsville, Bracebridge, and Gravenhurst in charging visitors for overnight stays — including short-term rentals.
The tax, set to take effect January 1, 2026, is expected to generate about $1.5 million annually. While officials say it will strengthen the township’s growing accommodation and short-term rental market, resort owners like Ty Hungerford of Lumina Resort warn the added cost could price out middle-class tourists and strain small operators already battling inflation.
A month after Montreal’s seasonal Airbnb ban took effect, hundreds of listings continue to flout the new rule restricting short-term rentals to the June–September window.
Ville de Montréal
According to the watchdog group À bas Airbnb, at least 526 illegal listings remain active, highlighting ongoing enforcement challenges. The bylaw was meant to free up housing amid surging rents — now up 71% since 2019 — but critics say lax penalties and limited staffing have blunted its impact. City inspectors face difficulties verifying primary residences and are constrained by provincial fine limits of just $1,000 per offence.
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With Kelowna’s rental vacancy rate climbing to its highest level in two decades, city staff are recommending a partial rollback of provincial short-term rental rules.
The 2024 vacancy rate hit 3.8%, and projections show it could near 6% this year — clearing the threshold for cities to opt out of B.C.’s provincial regulations. Staff suggest introducing a new zoning subzone to allow limited exemptions for resort-style and tourism-oriented properties. Council will review the proposal in Nov. 3, ahead of a March 31 deadline to notify the province of any opt-out decision.
Kelowna Short Term Rentals
LaSalle is taking its first steps toward regulating short-term rentals and is asking residents to weigh in.
The town has launched a study with WSP Canada to explore management options that could lead to new zoning and bylaw changes. With only a small number of STRs currently operating, officials say they’re looking at how other Essex County municipalities have approached regulation. Feedback gathered during an open house this week will help shape recommendations set to go before council in November.
Greater Napanee will introduce a Municipal Accommodation Tax in 2026, applying a four per cent levy to local hotels and motels.
The move, expected to generate about $180,000 annually, will see half the revenue directed toward tourism promotion and the rest retained by the municipality. Council approved the measure after extensive consultation and study, saying it will boost local tourism while providing new revenue to support community programs.
Magnetawan is moving forward with a series of changes to its short-term rental bylaw after a lengthy public meeting.
The town will temporarily lift its annual cap on short-term accommodation licences until 2026 to encourage registration and compliance. Council also modified the summer minimum-stay rule, limiting operators to one booking per week while allowing shorter stays for vetted guests.
Other adjustments include clarifying inspection timelines, linking occupancy to septic capacity, and maintaining the “three-week rule” for non-commercial use. Council plans to formally adopt the amendments at a later meeting.
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