DeedWorthGuide · Quebec

Airbnb vs Long-Term Rental in Ontario: Rules and the Real Math

Short-term rental can out-earn a standard lease, but in Ontario the rules are municipal and strict in the big cities. Start with the law.

The law first: municipal

Ontario leaves STR to municipalities. In Toronto:

• STR is allowed only in your principal residence (where you live and get your mail).
• You must register with the City and display the STR registration number on every listing (fee ~$390/year as of 2026).
• You can rent the entire home up to 180 nights/year, or rooms year-round.
• Investment properties cannot be listed for stays under 28 days. Ottawa is similar: principal residence, up to 180 days. A Municipal Accommodation Tax may also apply. Check your city — rules differ.

How much short-term rental earns

Gross revenue = average nightly rate (ADR) × 365 × occupancy. But gross is misleading: platform, cleaning, management, furnishing and seasonal vacancy costs are far heavier than long-term renting. The real question: what occupancy do you need to beat long-term once all costs are out? That is your break-even.

Long-term: less revenue, more stability

Long-term renting offers predictable income, low costs and little management, with no STR registration. In return, rents are regulated. For many investors it is the stable core; STR only pays on specific assets and locations.

Compare before you commit

The verdict depends on zoning, seasonality and management cost. DeedWorth compares short-term and long-term for the same property — revenue, costs, STR premium, break-even occupancy and a verdict. Compare short-term vs long-term with DeedWorth →

FAQ

Do I need a licence for Airbnb in Ontario? It depends on the municipality. In Toronto you must register with the City, operate only in your principal residence, and display the registration number; investment properties cannot host stays under 28 days.

How many nights can I rent short-term in Toronto? Up to 180 nights per year for the entire home, or rooms year-round, and only in your principal residence.

Can I run an Airbnb in an Ontario investment property? In Toronto, no for stays under 28 days — STR is limited to your principal residence. Rules vary by municipality, so check locally.

Is short-term more profitable than long-term in Ontario? Sometimes, with high occupancy and where rules allow, but higher platform, cleaning, management and vacancy costs mean you must reach a break-even occupancy.

For information only. STR rules vary by municipality and change; verify zoning and requirements with your city and province. Last verified: June 2026.