The City of Toronto ruled out using condos strictly for short-term real estate rentals in 2019. Homeowners have to register, remain onsite, and pay a 4% MAT (municipal accommodation tax). That said, Airbnb rules in the Greater Toronto Area vary by municipality and building. Start by checking your condominium corporation bylaws, rules, and regulations. Your corporation may deny or restrict short-term rentals.
Now that you know the rules, what happens if you make an offer on a condo building before you realize it has a reputation for being a “ghost hotel” or party hang-out? Given how popular Airbnbs have become, you need to seriously investigate real estate investments before you buy.
As part of the “subject-to” conditions in your offer to purchase, your realtor can give you a contact to request a mandatory status certificate from the condominium corporation. Checking a year or two of corporation minutes for complaints from current owners could give you the information you need to decide if you want to proceed with a real estate offer.
Your Axess Law Toronto real estate lawyer can advise on your buyer’s right to cancel by reviewing your agreement of purchase and sale. Protect your legal rights if your worst fears are confirmed by talking to us before or after you make a real estate offer.