| 133809 | REPORT | N | N | MAIN | ACTION | AMENDED | — | N | — | Short-Term Rental By-law Implementation Update | 2024.PH11.9 | PBNTGVN | Y | Y | Y | Y | <p>The Executive Director, Municipal Licensing and Standards recommends:</p>
<p> </p>
<p>1. City Council amend Chapter 547, Licensing and Registration of Short-Term Rentals to:</p>
<p> </p>
<p style="padding-left: 30px;">a. Require an applicant for a short-term rental operator registration to submit, upon request, at least two documents in addition to government-issued identification to demonstrate to the satisfaction of Municipal Licensing and Standards that the proposed short-term rental is their principal residence;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. Amend the definition of principal residence to clarify that an operator's principal residence cannot include another space on the same property as a proposed or existing short-term rental that meets or could readily be modified to meet the definition of a dwelling unit;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">c. Insert a definition of "dwelling unit", for the purposes of determining an operator's principal residence, as a "separate or self-contained living accommodation for a person or persons living together as a single housekeeping unit in which both food preparation and sanitary facilities are provided for the exclusive use of the occupants of the unit, and includes, for the purposes of this Chapter, a secondary suite, laneway suite, garden suite, or similar accommodation";</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">d. Limit operators to renting a short-term rental for a cumulative total of 180 nights per calendar year, regardless of whether the rental is a partial-unit or entire-unit rental;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">e. Require an applicant for a short-term rental operator registration or its renewal to attend an in-person interview, upon request, at a time and place designated by Municipal Licensing and Standards, and provide any information or documents Municipal Licensing and Standards may require to evaluate the applicant’s eligibility for a short-term rental operator registration;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">f. Clarify that Municipal Licensing and Standards may require an operator to attend an inspection of their short-term rental at any time during the term of their registration and that the operator must comply with directions given by Municipal Licensing and Standards during that inspection;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">g. Clarify that a short-term rental operator registration is tied to the address listed on the registration issued by Municipal Licensing and Standards and require Municipal Licensing and Standards to refuse an application for a short-term rental operator registration or its renewal related to any address for which a short-term rental operator registration had been revoked in the 12 months preceding the application date, except where applicant can demonstrate to the satisfaction of Municipal Licensing and Standards that the property has been sold;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">h. Limit short-term rental operator registrations to one per dwelling unit, regardless of how many people may live in that dwelling unit, to be implemented by permitting only the operator who has held a registration related to the dwelling unit for the longest continuous period of time to renew their registration;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">i. Require the records short-term rental companies must keep to include the full name of the short-term rental operator as listed on their corresponding registration issued by Municipal Licensing and Standards;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">j. Clarify the requirements for short-term rental advertisements, verification of operator registration information by licensed short-term rental companies, and the removal of short-term rental advertisements by unregistered operators by amending 547-1.3 to include the following requirements:</p>
<p> </p>
<p style="padding-left: 60px;">i. Require that no person shall advertise a short-term rental unless it displays the operator's registration number in a prominent location on the main page of the advertisement.</p>
<p style="padding-left: 60px;"> </p>
<p style="padding-left: 60px;">ii. Require that no person shall advertise, facilitate the advertising or rental of, or broker a short-term rental unless the operator is registered as such with Municipal Licensing and Standards and is using their full name, address and registration number on record with Municipal Licensing and Standards.</p>
<p style="padding-left: 60px;"> </p>
<p style="padding-left: 60px;">iii. Require every short-term rental company to verify the above information, at each instance they provide such services, in a manner prescribed by the Executive Director, by reference to the short-term rental registration data maintained and provided by Municipal Licensing and Standards for this purpose.</p>
<p style="padding-left: 60px;"> </p>
<p style="padding-left: 60px;">iv. In addition to the above, require a person, within 24 hours of being requested to do so by Municipal Licensing and Standards, to remove an advertisement that does not comply with the above requirements or that relates to an unregistered operator and cancel all future bookings made with respect to that short-term rental.</p>
<p> </p>
<p style="padding-left: 30px;">k. Amend the process to revoke an operator's registration such that if an operator delivers a written response to Municipal Licensing Standards' notice of intent to revoke their registration, the response shall be reviewed by the Executive Director, or their designate, who shall make a final decision that is no longer subject to further appeal or review;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">l. Require short-term rental operators, in addition to providing emergency information and an exit diagram to guests, to post a physical copy of such information in a conspicuous place within the short-term rental for the duration of a guest's rental period;</p>
<p> </p>
<p style="padding-left: 30px;">m. Require short-term rental companies to verify the validity of listings on their platforms that claim to be hotels by reference to a list of registered hotels provided by Municipal Licensing and Standards and to remove any listings that do not correspond with the list;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">n. Prohibit a multi-tenant house operator from obtaining a short-term rental operator registration related to that multi-tenant house;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">o. Remove 547-2.2 D given its time-limited application during the City's pandemic response.</p>
<p> </p>
<p>2. City Council direct the Executive Director, Municipal Licensing and Standards and the Chief Technology Officer to develop an Application Programming Interface (API) to facilitate the secure delivery of and access to short-term rental registration data for the purposes of operator validation by licensed short-term rental companies.</p>
<p> </p>
<p>3. City Council request the Province of Ontario to clarify the application of the Residential Tenancies Act with respect to rentals of 28 days or longer.</p>
<p> </p>
<p>4. City Council request the Province of Ontario to commit to the preservation of long-term rental housing stock by addressing the Provincial Ombudsman’s recommendations related to resource and process-based constraints impacting the operation of the Landlord and Tenant Board.</p>
<p> </p>
<p>5. City Council direct the bylaw amendments in Recommendation 1 come into effect on the following dates:</p>
<p> </p>
<p style="padding-left: 30px;">a. The amendment in Recommendation 1 (o) to remove time-limited provisions related to the City's pandemic response come into effect immediately on the date a by-law is adopted.</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. The amendments in Recommendations 1 (b), (c), (i), (j) i - iv, (k), (l), (m) and (n) to enhance data verification processes, advertising requirements and bylaw compliance and enforcement measures come into effect on June 30, 2024.</p>
<p> </p>
<p style="padding-left: 30px;">c. The amendments in Recommendations 1 (a), (e), (f), (g), and (h) addressing strengthening registration requirements and the principal residence requirement come into effect on September 30, 2024.</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">d. The amendment in Recommendation 1 (d) to limit partial-unit rentals to 180 nights come into effect on January 1, 2025.</p>
<p> </p>
<p>6. City Council amend Toronto Municipal Code Chapter 441, Fees and Charges, Appendix C - Schedule 12, Municipal Licensing and Standards by amending fees in the below table:</p>
<p> </p>
<table style="background: white; border-collapse: collapse; border: none;" width="103%">
<thead>
<tr style="height: 26.1pt;">
<td style="width: 42.3pt; border: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="56">
<p>Ref No.</p>
</td>
<td style="width: 70.85pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="94">
<p>Service Fee</p>
</td>
<td style="width: 78.0pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="104">
<p>Description</p>
</td>
<td style="width: 63.75pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="85">
<p>Category</p>
</td>
<td style="width: 72.15pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="96">
<p>Fee Basis</p>
</td>
<td style="width: 76.7pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="102">
<p>Fee</p>
</td>
<td style="width: 77.95pt; border: solid windowtext 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 26.1pt;" width="104">
<p>Annual Adjustment</p>
</td>
</tr>
</thead>
<tbody>
<tr style="height: 1.25pt;">
<td style="width: 42.3pt; border: solid windowtext 1.0pt; border-top: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="56">
<p>465</p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="94">
<p>Private Properties</p>
</td>
<td style="width: 78.0pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="104">
<p>REVISED</p>
<p>Short-Term Rental Company: Application Fee</p>
</td>
<td style="width: 63.75pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="85">
<p>Full Cost Recovery</p>
</td>
<td style="width: 72.15pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="96">
<p>Per application</p>
</td>
<td style="width: 76.7pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="102">
<p>REVISED</p>
<p>$10,000.00</p>
</td>
<td style="width: 77.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.25pt;" width="104">
<p>REVISED</p>
<p>Yes</p>
</td>
</tr>
<tr style="height: 46.8pt;">
<td style="width: 42.3pt; border: solid windowtext 1.0pt; border-top: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="56">
<p>NEW</p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="94">
<p>Private Properties</p>
</td>
<td style="width: 78.0pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="104">
<p>REVISED</p>
<p>Short-Term Rental Company: Renewal Fee</p>
</td>
<td style="width: 63.75pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="85">
<p>Full Cost Recovery</p>
</td>
<td style="width: 72.15pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="96">
<p>Per renewal</p>
</td>
<td style="width: 76.7pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="102">
<p>REVISED $10,000.00</p>
</td>
<td style="width: 77.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 46.8pt;" width="104">
<p>REVISED</p>
<p>Yes</p>
</td>
</tr>
<tr style="height: .85pt;">
<td style="width: 42.3pt; border: solid windowtext 1.0pt; border-top: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="56">
<p>466</p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="94">
<p> </p>
<p>Private Properties</p>
</td>
<td style="width: 78.0pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="104">
<p>Short-Term Rental Company: Nightly Fee</p>
</td>
<td style="width: 63.75pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="85">
<p>Full Cost Recovery</p>
</td>
<td style="width: 72.15pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="96">
<p>Per night booked</p>
</td>
<td style="width: 76.7pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="102">
<p>REVISED</p>
<p>$1.50</p>
</td>
<td style="width: 77.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: .85pt;" width="104">
<p>Yes</p>
</td>
</tr>
<tr style="height: 1.15pt;">
<td style="width: 42.3pt; border: solid windowtext 1.0pt; border-top: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="56">
<p>467</p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="94">
<p> </p>
<p> </p>
<p>Private Properties</p>
</td>
<td style="width: 78.0pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="104">
<p>Short-Term Rental Operator: Registration Fee (Annual)</p>
</td>
<td style="width: 63.75pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="85">
<p>Full Cost Recovery</p>
</td>
<td style="width: 72.15pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="96">
<p>Per application</p>
</td>
<td style="width: 76.7pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="102">
<p>REVISED</p>
<p>$375.00</p>
</td>
<td style="width: 77.95pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 1.15pt;" width="104">
<p>Yes</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>7. City Council direct that the amendments to Chapter 441 come into effect as follows:</p>
<p> </p>
<p style="padding-left: 30px;">a. The changes to the Short-Term Rental Company Application Fee, Short-Term Rental Company Renewal Fee, and Short-Term Rental Nightly Fee shall come into force on June 30, 2024.</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. The changes to the Short-Term Rental Operator Registration Fee shall come into force on January 1, 2025.</p>
<p> </p>
<p>8. City Council increase the 2024 Operating Budget of Technology Services Division by $0.243 million gross and net; and increase the 2024 Operating Budget of Municipal Licensing and Standards by $0.777 million gross, $1.020 million revenue, and -$0.243 million net, fully funded from increased licence fee revenues.</p>
<p> </p>
<p>9. City Council increase the approved staff complement of Technology Services Division by 2 positions; and increase the approved staff complement of Municipal Licensing and Standards by 21 positions to support the implementation of the proposed changes outlined in this report.</p>
<p> </p>
<p>10. City Council authorize the City Solicitor to make amendments to the Toronto Municipal Code, including such technical, stylistic, organizational, or other clarifications to its existing provisions, as may be necessary, in their opinion, to bring these and past adopted recommendations related to short-term rentals into effect or to increase the clarity and readability of its provisions.</p> | <p>In 2023, MLS’ short-term rental program generated $1.79 million in fee revenue while program costs were $2.65 million, resulting in a total shortfall of $0.86 million. This shortfall substantially constrains MLS’ ability to conduct inspections, administer the program and manage complaints and inquiries.</p>
<p> </p>
<p>To implement this report’s proposed enhancements to the administration, enforcement, and compliance of the City’s short-term rental program, MLS has identified the need for an expanded enforcement and compliance staff complement. This includes 14 additional staff within MLS’ Rental Standards Unit, 5 additional staff within MLS’ Business Licensing and Regulatory Services Unit and 2 additional staff within MLS' Policy and Strategic Support Unit at a total cost of $2.26 million. In addition, 2 more staff for Technology Services are needed to sustain the program's technology solutions, at a cost of $0.32 million. The proposed staff complement aims to address both net new resource requirements to adequately implement the proposed regulatory updates, and meet existing program needs. Along with associated technology and equipment costs, this would result in estimated program costs increasing from $2.65 million to $5.51 million annually.</p>
<p> </p>
<p>Pursuant to the City’s User Fee Policy, MLS’ licensing fees are determined on a cost recovery basis. As such, the estimated increase in program costs would be fully offset by projected revenues from the proposed updates to MLS' short-term rental licensing and registration fees. Projected revenues from the updated fees (based on 2023 licensing volumes) would result in total annual fee revenues of $2.13 million in 2024 and $5.52 million in 2025 and onwards, assuming licensing volumes remain stable. Projected fee revenues for 2024 are lower than 2025 due to the recommended phased implementation of fee amendments where the updated Short-Term Rental Company Renewal and Application Fees and Short-Term Rental Nightly Fees would come into effect on June 30, 2024 and the updated Short-Term Rental Operator Registration Fee would come into effect January 1, 2025.</p>
<p> </p>
<p>The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.</p> | <p>Toronto Municipal Code Chapter 547, Licensing and Registration of Short-Term Rentals regulates short-term rental activity by requiring short-term rental operators to be registered and short-term rental companies to be licensed with the City and abide by operational standards and regulatory requirements. The regulations - in conjunction with zoning provisions - permit property owners and tenants who are registered as short-term rental operators to rent their principal residence (i.e. where they ordinarily reside) for a period of less than 28 consecutive days. The primary principles of Chapter 547 are to limit short-term rental activity to principal residences and to protect critical rental housing stock by maintaining access to long-term accommodation for tenants.</p>
<p> </p>
<p>This report responds to City Council direction to provide an update on the implementation of the City's short-term rental regulations and assess their impact on Toronto's short-term rental market. The report provides an overview of program data and revenues, contextualized by new research conducted by experts from the School of Urban Planning at McGill University, and outlines bylaw interpretation challenges and the City's response to enforcement challenges such as "ghost hotels". It also discusses the medium-term rental market (i.e. rental periods of 28 days or more), emerging activity related to third-party international student housing providers, and the impact of the bylaw's implementation on Toronto's hotel industry.</p>
<p> </p>
<p>Through this report, Municipal Licensing and Standards is recommending a suite of bylaw amendments that aim to uphold the program's principles, further prevent commercialized short-term rental activity, and address enforcement and bylaw interpretation challenges. Proposed amendments include: i) strengthening the principal residence requirement through improvements to registration standards, ii) amending definitions to clarify the bylaw, iii) enhancing advertising, data sharing and data verification requirements with short-term rental companies, iv) streamlining the process to revoke a short-term rental operator's registration and v) introducing additional measures to curtail rental activity by unregistered operators. In addition, enhancements to administrative, enforcement and compliance resources are proposed through updates to the program's fee structure. This report also proposes that City Council request the Province of Ontario to clarify legislative authority of medium-term rentals and to take action to preserve long-term housing stock by addressing the Provincial Ombudsman's recommendations related to the Landlord and Tenant Board.</p>
<p> </p>
<p>This report was developed with input from the Housing Secretariat, Technology Services, Revenue Services, City Planning, and Economic Development and Culture divisions.</p> | 11 | 9 | CMMTTEE | PH | All | N | 1713326400000 | … | Report | ACTION | Amended | Main | — | Public Notice Given | Committee | … | … | … | … | … | … | … | … | … | … | … | Decision information not found | false | Amended | — | … | … | … | … | — | — | — | — | — |