Short Term Rentals - FAQ

Short-term rentals are generally understood to be when individuals rent out their residence, or part of their residence, for short periods of time (not more than 29 consecutive days) for a fee. Businesses, such as Airbnb and Expedia, offer a service where individuals can advertise and book their short-term rental.

• Vaughan homeowners and tenants/lessees who plan to operate a short-term rental in their principal residence.
• Businesses, such as Airbnb and Expedia, that offer a service where individuals can advertise and book their short-term rental.

As of Jan. 1, 2020, short-term rentals are allowed in residential dwelling units, including single detached, semi-detached, townhouses, condominiums/apartments and secondary suites in a single detached dwelling, that is the homeowner’s or tenant/lessee’s principal residence, provided that a licence is obtained. 

The Short-Term Rental Licensing By-law (linked to the right) came into effect on Jan. 1, 2020 to help regulate and provide access to accommodations that are safe for the public. 

Yes, as of Jan. 1, 2020, Vaughan residents can obtain a licence to rent out their principal residence, or part of their principal residence, for short periods of time (not more than 29 consecutive days). As per Short-Term Rental Licensing By-law, homeowners are considered owners, and businesses, such as Airbnb and Expedia, that offer a service where individuals can advertise and book their short-term rental are considered brokerages. Both are required to obtain the appropriate licence. 

Processing times can vary based on the information provided in the application form. Each application is reviewed to ensure the applicant meets the requirements of the Short-Term Rental Licensing By-law. 

At this time, applicants can apply on the online Licensing Portal, or by completing the application form on the Applications page and submitting it to the City by email, mail or via the drop box located at City Hall; note that payment must be made for an application to be considered. See the Applications page for more information. 

The introduction of a Municipal Accommodation Tax (MAT) was approved by Council in January 2019, and collection for hotels, lodges, bed and breakfasts and motels came into effect on April 1, 2019. The MAT Short-term Rental By-law 183-2019 (PDF) was approved by Council in December 2019. This by-law applies the MAT to all short-term rental stays and collection comes into effect on April 1, 2020. To learn more, visit the Municipal Accommodation Tax page. 

If you are granted a Short-Term Rental Owner licence, you are allowed to rent the entire home or up to two bedrooms without requiring renovations; if you would like to rent more than two bedrooms, but not your entire home, renovations or additional construction may be required. For more information, contact the Building Standards Department at buildingstandards@vaughan.ca or 905-832-8510.

It depends on your specific situation. To maintain a level of life safety for you and your guests, the Province of Ontario, through the Building Code, establishes minimum construction standards for your dwelling unit. In general, existing homes that are compliant with the Building Code and Zoning By-law may not require renovations or additional construction. As well, all bedrooms are required to either be built as part of the original construction or lawfully constructed under the authorization of a building permit.

If you are planning renovations, such as finishing unfinished space or adding bedrooms, in order to rent out the space, residents should  contact the Building Standards Department at buildingstandards@vaughan.ca or 905-832-8510.

All existing homes in Ontario, regardless if they are a short-term rental or not, are subject to the Ontario Fire Code, which states:

• Smoke alarms must be installed on all levels of the home, outside all sleeping areas, between the sleeping area and the remainder of the home, and maintained in operating condition in accordance with the manufacturer’s instructions.

• If the home has a fuel burning appliance or fireplace or connected garage, carbon monoxide alarms must be installed adjacent to each sleeping area, and maintained in operating condition in accordance with the manufacturer’s instructions.

Please contact Access Vaughan at 905-832-2281 to submit a complaint. The matter will be directed to the City’s By-law and Compliance, Licensing and Permit Services department for investigation.

All properties within the city of Vaughan are subject to the minimum standards established by the City’s Property Standards By-law 231-2011 (PDF), which manages and controls the way properties are maintained and used in the city of Vaughan. The purpose of this by-law is to set out standards for properties, so they are not an eyesore or nuisance to neighbours or affect the enjoyment of one’s own property. Properties are also subject to the Parking By-law 064-2019 (PDF) and Noise By-law 062-2018 (PDF), as amended, and all other applicable laws. Please call Access Vaughan at 905-832-2281 for more information or to file a formal complaint.

The City of Vaughan undertook an extensive review of the impacts of short-term rentals, including the commonly reported challenges, opportunities, benefits and best practices.

The feedback received through the public consultation process, which took place from November 2018 to March 2019, was presented to Council at the Finance, Administration and Audit Committee Meeting on May 6, 2019. The report was adopted without amendment at the Council Meeting on May 14, 2019.

A Public Hearing was held on Sept. 17, 2019 (PDF) to receive public input on the proposed amendment(s) to the Zoning By-law 1-88 as it relates to short-term rental accommodations. A report to Council regarding the proposed amendments of the Zoning By-law relating to short-term rentals was presented at the Committee of the Whole (1) Meeting on Nov. 5, 2019. The final licensing framework by-law was adopted without amendment at the Council Meeting on Nov. 19, 2019.

In communities such as Vaughan where a destination marketing organization does not exist, the transient accommodation tax under the Municipal Act, 2001 requires municipalities that choose to implement a transient accommodation tax to share a portion of their revenues from the tax with an “eligible tourism entity.” In Vaughan, 50 per cent of income collected from MAT will be used to fund destination marketing in the City. The remaining 50 per cent will be used for city-building initiatives.