Navigating Short-Term Rentals in Ontario’s Regulated Landscape – 2025 Updates

Overview of Short-Term Rental Regulations in 2025

Short-term rentals (STRs) in Toronto and the GTA remain viable for yield enhancement but operate under strict rules. Principal residence requirements, registration mandates, and a temporary Municipal Accommodation Tax increase to 8.5% (June 2025–July 2026) shape the market.

Key Regulatory Changes Effective 2025

Toronto's bylaw updates (phased through January 2025) clarify definitions, raise registration fees to $375, and introduce annual inspections. Operators must limit to principal residences, with caps on nights and mandatory tax remittance.

Balancing Yields with Compliance

Professionally managed STRs in multiplex units can boost NOI significantly versus long-term leases, but non-compliance risks steep fines. Diversified strategies—mixing short- and long-term—mitigate regulatory and seasonal risks.

Opportunities in Compliant Short-Term Rentals

In premium GTA locations, compliant STRs offer flexibility and higher returns. Integration into multifamily portfolios enhances overall performance when overseen expertly.

Outlook for 2026

Stabilized regulations and potential economic recovery could support STR demand, provided hosts prioritize compliance.

Team Bee's Approach to Short-Term Rental Integration

We incorporate compliant short-term units into tailored portfolios, ensuring secure optimization through our network.