Toronto’s booming short-term rental market offers great income potential, but it comes with important legal responsibilities. To operate within city limits, hosts must register for a Short-Term Rental (STR) license — a rule designed to protect housing availability and ensure guest safety.

Your property must be your principal residence, meaning you live there most of the year. This law prevents investors from turning multiple properties into full-time vacation rentals. You can still rent out rooms, your basement suite, or your entire home while away — as long as it’s your primary home.

The registration process is straightforward. Visit the City of Toronto’s official STR registration portal, complete the online form, provide proof of residence (such as a driver’s license or utility bill), and pay the registration fee. Once approved, you’ll receive an STR license number that must appear on all listings, including Airbnb, Vrbo, and Booking.com.

Operating without a license can lead to fines up to $100,000, removal from platforms, or permanent hosting bans. The city actively enforces compliance through data-sharing agreements with booking platforms.

Beyond legality, having a license builds guest confidence. Travelers are more likely to book from verified, compliant hosts. It shows professionalism and commitment to safety.

Staying licensed also ensures access to city support programs and resources for responsible hosts. Ultimately, being compliant not only protects you but strengthens Toronto’s reputation as a trustworthy, well-regulated short-term rental destination.