From Vancouver to Toronto, strict short-term rental laws are changing how Canadians buy, rent, and invest in real estate.
If you’ve ever dreamed of turning a spare unit into passive income, you may want to check your local bylaws. In 2025, cities across Canada have implemented major crackdowns on Airbnb and other short-term rental (STR) platforms, targeting everything from investor-owned condos to seasonal listings.
Here’s how the changing rules are affecting homeowners, renters, and investors nationwide.
British Columbia: Province-Wide STR Crackdown Begins
In May 2025, B.C. launched a provincial STR registry. All short-term rental listings must now be registered, and platforms like Airbnb and Vrbo are required to remove unregistered listings by June 2, 2025.
Key rules:
- STRs must be the host’s principal residence
- Only one additional unit is allowed per property
- Hosts face fines of up to $3,000/day for non-compliance
👉 More on B.C.’s short-term rental rules
Toronto: Primary Residence Rule + Mandatory Licensing
In Toronto, only your primary residence can be used for short-term rentals, and you must be registered with the city.
Rules at a glance:
- Maximum 180 nights/year if you rent out your full home
- License and business number must appear on the listing
- Non-compliance can result in hefty fines
Montreal: Seasonal Restrictions
Montreal has taken a new approach: STRs are only allowed between June 10 and September 10 each year.
This limits enforcement challenges and returns more inventory to long-term rentals the rest of the year.
Federal Crackdowns: No More Tax Write-Offs for Non-Compliant Rentals
The Canada Revenue Agency has also tightened the rules:
- Expenses on non-compliant STRs — like mortgage interest, repairs, and utilities — are no longer tax-deductible
- Hosts must meet local licensing rules to claim deductions
👉 CRA announcement on STR tax rules
Why This Matters for Homeowners and Investors
These new rules are reshaping the real estate landscape by:
- Reducing the profitability of STR investment properties
- Incentivizing long-term rentals, especially in tight markets
- Forcing casual hosts to either comply or leave the platform entirely
While renters and housing advocates welcome the changes, some investors and tourism operators are pushing back, warning of reduced visitor accommodations and lower income potential.
Final Thoughts
Whether you’re a host, renter, investor, or just curious about your city’s rental landscape, Canada’s STR policies are shifting fast. Make sure you understand the local laws — and how they may affect your real estate strategy in 2025.
References:
Canada Housing Market 
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