Toronto city council has tightened its short-term rental bylaw to tackle regulatory loopholes and curb exploitation by operators. Changes include higher registration fees, stricter vetting of hosts, and increased inspections, with nearly two dozen additional inspectors being hired. Mayor Olivia Chow believes these amendments will alleviate the housing crisis by empowering the city to crack down on speculators while allowing legitimate rentals. The bylaw still requires hosts to live in the rental property, aiming to stop gaming of the system. False identification loopholes are being closed, with additional document verification required. The amendments target “ghost hotels” and improve data collection.

Airbnb and Fairbnb Canada have shown support for the regulations, anticipating a reduction in scams and a fairer housing market for residents. Fairbnb estimates that there are approximately 5,500 problematic hosts out of the potential 9,000 short-term rental hosts in Toronto.