If you are renting a property short term in Ontario, or buying one to do it, five things decide the outcome: the rules in the exact municipality where the property sits, the direction of the market itself, what your guests actually want, how well the place is marketed, and whether you run it alone or bring in a professional manager. The first one causes the most damage when it is missed.
I am Moe Asgarian, a principal real estate broker in Toronto, and my team has been providing short term rental services for years alongside sales and long term leasing. The short term rental market, the one many Canadians know through Airbnb and VRBO, has reshaped temporary accommodation everywhere. People come into Toronto and Vancouver for a trade show, a sports match, shopping or a few days away, and they now have the option of renting somewhere good for a short stay. Alongside that, a large market has grown up around the towns and cottage country outside the cities, and it works by its own rules. This piece is written as of April 2024.
Follow the rules in the exact town, not the province
My first piece of advice, whether you are entering this market or already renting your place out short term, is to follow legal changes closely. Municipalities, provinces and sometimes federal decision makers change the existing rules, and knowing about those changes has a real effect on your decisions.
Here is a recent example. A few weeks ago a friend came to me wanting to buy a cottage around Lake Simcoe. We started looking at what cottages cost and which one suited him, and we had shortlisted a few cottages and villas to dig into. That is when I found out that since the summer of the previous year, Innisfil and some towns near Toronto had introduced a rule: you can no longer rent for less than 30 days. If someone wants to book four or five nights, you simply cannot rent the unit to them. It has to be at least a 30 day stay. Other municipalities have added rules that limit how close two licensed short term rentals can sit to each other, so in practice permission rotates between neighbouring properties.
The pricing effect was immediate. In Friday Harbour, a well known area in Innisfil, several multi million dollar cottages came to market priced on their Airbnb rental income, and by spring 2024 those numbers did not work anymore, because the owners cannot rent the villa for four or five nights. This is exactly why you have to track the bylaws and know what is changing, because it can reshape the decision itself. Rising rents in cities like Toronto have also pushed officials to change short term rental rules, adjusting taxation and attaching time limits like the one above. Not knowing the rules, or not keeping up with the changes, can be bad for the business and cost you money.
Watch what the market itself is doing
The second point is paying attention to what is happening inside this market as an economic and investment trend. Growth has been considerable. As of early 2024, around 235,000 rooms or homes were listed on Airbnb and VRBO across Canada. That is a small share of the Canadian housing market overall, but the ratio rises when you narrow it to Toronto and Vancouver.
Plenty of reporting over that period showed that legal restrictions in British Columbia and Ontario put the companies managing these units under pressure. It matters to watch these trends and see how the other players in the market are doing and what performance they are actually getting. If professional operators are struggling in your province, that tells you something before you commit capital.
Know who your guests are and what they want
The third point is close attention to the guests themselves. People who choose your property in Toronto instead of booking a hotel are making a specific choice, and you need to study what matters to them. One of the biggest factors is comfort. These are guests who are away from home but want to feel the same ease in your place that they feel in their own. Identify those details precisely and make your property stand out from the other homes and options the guest is choosing between.
Market the property properly
The fourth point is one we tell every client: advertise the home well. Take good photos of it. Advertise in the places that give you the best return. Do not forget social media, which in this market is a winning card for you. A strong listing with weak photos loses to a weaker property with better presentation, and that gap shows up directly in your nightly rate and occupancy.
Consider a professional manager
The fifth point is advice for getting a better result: use the help or direct services of a reputable company. There are people and firms whose whole business is managing these short term rentals. Finding a good one buys you peace of mind and often more income. They know the regulations, they have experience with unusual situations, they price well, and quite often they deliver service good enough that your guest comes back a second and third time. Many of these companies also have a market research arm whose job is to assess current conditions and forecast where things are going.
If you have a property you want to rent short term, or you want to understand this market better before entering it, fill out the form at the bottom of this page or book a free consultation with my team. Stay well and take care.
Frequently asked questions
Can I rent my Ontario property for a few nights at a time?
It depends entirely on the municipality. As of spring 2024, Innisfil and some towns near Toronto had set a minimum stay of 30 days, meaning a four or five night booking was not permitted at all. Rules differ from town to town and change often, so check the bylaw for the exact municipality before you buy or list.
How did the 30 day minimum affect cottage prices near Lake Simcoe?
It changed what a cottage is worth. In Friday Harbour, a well known area in Innisfil, several multi million dollar cottages came to market priced on their Airbnb rental income, and by spring 2024 those numbers no longer worked because the owners could not rent for four or five nights at a time.
Is it worth hiring a short term rental management company?
For most owners, yes. A good company knows the regulations, has handled unusual situations before, prices the property well and often delivers service good enough that guests come back repeatedly. Many also run a market research function that looks at current conditions and where the market is heading.
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