An Ontario tribunal has ruled to uphold Toronto’s plan to place stricter regulations on short-term rentals like Airbnb following a two-year appeals process.
The Local Planning Appeal Tribunal said that it dismissed an appeal by residents who opposed new rules that placed limits on how people can rent out their properties.
The new rules require short-term rental operators to live at the residence that they list for rent on services like Airbnb. They need to register to rent out the home and are only allowed to rent a maximum of three bedrooms or the whole property.
Toronto placed the rules to address concerns about how short-term rentals are reducing the rental stock in the middle of a housing crisis.
“This is good news for Toronto residents and a step in the right direction when it comes to regulating short-term rentals and keeping our neighbourhoods liveable,” said Toronto Mayor, John Tory, in a written statement.
According to the city, the rules were introduced to increase the availability of long-term rentals by reducing the number of residences that can be listed on services like Airbnb.
Short-term rental sites like Airbnb now have to pay a one-time license fee of $5,000 CAD and an additional $1 for each rental night.