Montreal Implements Stricter Regulations for Short-Term Rentals, Focusing on Primary Residences

Montreal is implementing stricter restrictions on short-term vacation rental platforms by increasing the number of inspectors and limiting the rental period for primary residences.

Starting June 10, people will only be permitted to rent out their primary residences on platforms like Airbnb until September 10, with some exceptions allowed.

Mayor Valérie Plante stated that the city aims to return up to 2,000 units back to the long-term rental market with these new regulations.

Plante announced at a press conference, “Today my message is that illegal business on the back of Montreal renters is finished.”

Despite previous crackdown efforts, the city highlights that over half of the 4,000 units on short-term rental platforms are listed unlawfully.

In response to a tragic fire incident in an Old Montreal building housing illegal short-term rentals, the Quebec government introduced new legislation in 2023 concerning short-term rentals.

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The legislation mandates that short-term rental companies ensure their listings are province-certified and prohibits online advertising without displaying the provincial certificate number and expiry date.

While many Montreal boroughs restricted full-time Airbnbs to specified commercial areas, primary residence rentals were more lenient to allow temporary renting during short absences like vacations.

Enforcing the current regulations has been challenging, with investigations lasting up to a year to gather sufficient evidence for fines, as some individuals use deceptive tactics to list full-time rentals as primary homes.

The new rules shift the burden of proof to operators to demonstrate legal compliance, enabling inspectors to issue fines of $1,000 daily for listings outside the approved period, escalating to $2,000 for repeated violations.

Plante warned, “Posting an available apartment outside the permitted period will result in fines. Renting beyond this timeframe will incur a $1,000 daily penalty for each location.”

Prior to the announcement, Plante faced criticism from Quebec Tourism Minister Caroline Proulx, who accused her of shifting blame to the province for housing issues.

Plante responded, “I don’t believe a minister should accept such disregard for her legislation.”

The city is increasing its inspector count from four to ten to enforce the new regulations.

Airbnb spokesperson Alex Howell expressed concern that the strict rules would negatively impact tourism in the city without effectively addressing the housing crisis.

The revised rules are set for adoption in March, requiring a $300 permit for those wishing to rent out their homes during the permitted three-month period, while properties already holding a full-time short-term rental permit will be exempt.