Markham Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Markham

The City of Markham, located just north of Toronto in the York Region, does not currently permit short-term rental accommodation of less than 30 consecutive days. Residential property owners are only allowed to rent up to two bedrooms in a house, and the rental must be for periods of 30 days or more by way of a rental agreement, lease or similar arrangement.In May 2018, Markham City Council amended a series of zoning by-laws to define and effectively prohibit short-term rental accommodations within the city.

Therefore, property owners are not permitted to use their residential property as a short-term rental.The amended zoning by-laws added a definition of "short term accommodation" but did not permit the use in any zone. The definition states short-term accommodation is "an establishment that operates as or offers a place of temporary residence, lodging or occupancy by way of concession, permit, lease, license, rental agreement or similar commercial arrangement for overnight accommodation, for one or more periods of less than 30 consecutive days, and not more than 180 total days over the duration of the calendar year, within a single dwelling that is the principal residence of the proprietor of the establishment."

These changes were made in response to concerns from residents about the impact of short-term rentals on housing availability and affordability, as well as the character of residential neighborhoods. Many felt that allowing homes to be rented out on a nightly basis to tourists and visitors changed the fabric of communities.

Short Term Rental Licensing Requirement in Markham

There are no specific short-term rental licensing requirements in Markham, as short-term rentals of less than 30 days are not permitted. The city does not have a licensing system for this activity since it is prohibited under the zoning by-laws.

Other cities in the Greater Toronto Area that do allow short-term rentals, such as Toronto and Mississauga, have implemented licensing and registration requirements for hosts. These often involve obtaining a business license, paying an annual fee, and meeting certain standards around health and safety.

However, since Markham has taken the approach of banning all short-term rentals under 30 days rather than regulating and permitting them, no license is available or required. Property owners cannot legally operate short-term accommodations.

Required Documents for Markham Short Term Rentals

Since short-term rentals under 30 days are not allowed in Markham, there are no required documents that property owners need to provide to the city. For rentals over 30 days, a standard rental agreement or lease would be needed between the property owner and tenant.

A typical rental agreement should include:

• Names and contact information of the landlord and tenant
• Address and description of the rental property
• Term of the lease (start and end dates)
• Rent amount, due date and payment methods
• Security deposit amount (if applicable)
• Rights and responsibilities of both parties
• Conditions for termination of the lease

It's a good practice for landlords to also ask tenants to complete a rental application with proof of income and references, and to conduct credit and background checks. However, these are not documents that need to be submitted to the City of Markham.

Markham Short Term Rental Taxes

The City of Markham implemented a mandatory 4% Municipal Accommodation Tax (MAT) effective January 1, 2019 under By-law 2018-116. However, this tax only applies to hotels, motels and bed and breakfasts. It does not apply to short-term rentals, which are prohibited.

Property owners pay standard residential property taxes, a portion of which (25.35%) goes to the City of Markham to support local municipal services. There are no additional taxes or fees specifically for renting out rooms on a long-term basis.

In Ontario, landlords must also pay provincial and federal income tax on their rental income. They can deduct eligible expenses like mortgage interest, property taxes, insurance, utilities and repairs to calculate their net taxable rental income.

Markham wide Short Term Rental Rules

The key short-term rental rule in Markham is that rentals of less than 30 consecutive days are not permitted anywhere in the city. Residential property owners can only rent up to two bedrooms within their principal residence and the rental period must be 30 days or more.

In 2018, Markham amended its zoning by-laws to add a definition of "short term accommodation" but did not permit the use in any zone. The definition states short-term accommodation is "an establishment that operates as or offers a place of temporary residence, lodging or occupancy by way of concession, permit, lease, license, rental agreement or similar commercial arrangement for overnight accommodation, for one or more periods of less than 30 consecutive days, and not more than 180 total days over the duration of the calendar year, within a single dwelling that is the principal residence of the proprietor of the establishment."

The rules apply city-wide in all residential zones. There are no areas or neighborhoods in Markham where short-term rentals under 30 days are allowed.

Other key provisions in Markham's short-term rental rules include:

• A maximum of two bedrooms can be rented in a principal residence
• The home must be the owner's principal residence, not an investment property
• No additional cooking facilities or separate bathrooms can be added for tenants
• Owners must comply with all other city by-laws (noise, property standards, parking)

Does Markham strictly enforce STR rules?

Based on the information provided, it appears Markham has a strict prohibition on short-term rentals under 30 days and does not allow them in residential properties anywhere in the city. The rules seem to be clear, so it's likely the city would enforce against any illegal short-term rental activity if reported.

However, some Reddit users have commented that enforcement is complaint-based and properties are still listed on Airbnb despite the rules. One person mentioned they know someone who was reported by a neighbor and fined by the city. So while the rules exist, actual proactive enforcement by the city may be limited unless neighbors complain.

Compared to cities like Toronto that allow and regulate short-term rentals, Markham is not very friendly to Airbnb and similar platforms. The city has taken a firm stance in banning rentals under 30 days in an effort to protect the character and stability of residential neighborhoods.

It's unclear exactly how many short-term rentals may be operating illegally in Markham. A scan of Airbnb and other platforms shows some listings, but it's difficult to verify their legality or how often they are rented. The risk for hosts is that they could face significant fines if caught violating the city's rules.

How to Start a Short Term Rental Business in Markham

Short-term rentals under 30 days are not permitted anywhere in Markham, so it is not possible to legally start this type of business in the city while complying with local zoning regulations. Property owners could potentially rent out up to two rooms only for periods of 30 days or more.

Here are the steps to rent out rooms in Markham for 30+ days:

• Ensure your home is your principal residence where you live most of the time
• Check that your home is in a residential zone that allows long-term rentals
• Prepare up to two existing bedrooms for rental, without adding separate bathroom or cooking facilities for tenants
• Determine a fair market rental rate and create a standard lease agreement for 30 days or longer
• Take photos of the rental rooms and create a listing on long-term rental sites
• Screen prospective tenants by requiring a rental application with proof of income and references
• Conduct credit and background checks and contact employers and prior landlords
• Select a qualified tenant and execute the lease agreement, collecting any security deposit
• Provide keys/access to your new tenants and perform any necessary move-in inspections together
• Collect rent monthly via cheque or e-transfer and maintain the property in a good state of repair
• Address any issues that arise during the tenancy promptly and professionally
• Keep accurate records of rental income and expenses for tax purposes

It's important to note that even long-term rentals in Markham are limited to a maximum of two bedrooms in the owner's principal residence. Homeowners cannot rent out an entire house or apartment on a long-term basis if they are not living there themselves.

Who to contact in Markham about Short Term Rental Regulations and Zoning?

For any questions about Markham's short-term rental regulations or to report a suspected illegal short-term rental, residents can contact the City of Markham's By-law Enforcement team:

• Phone: 905-479-7782
• Email: customerservice@markham.ca
• Online Service Request: https://www.markham.ca/MobileApp/RequestService

The By-law Enforcement team is responsible for investigating complaints and enforcing Markham's zoning rules and property standards. They can answer questions about what is and isn't allowed, and take action against any properties violating the short-term rental ban.

The city's zoning department can also answer questions about where different uses are permitted under Markham's zoning by-laws:

• Phone: 905-475-4861
• Email: zoning@markham.ca

More information on Markham's comprehensive zoning by-law review project is available at https://yourvoicemarkham.ca/zoningbylaw. This initiative is looking at updating the city's zoning rules to better reflect current land use trends and priorities.

For general inquiries about doing business in Markham, the Markham Board of Trade is a helpful resource:

• Phone: 905-474-0730
• Email: info@markhamboard.com
• Website: https://markhamboard.com/

The Board of Trade provides support and advocacy for the local business community and may be able to advise on navigating the regulatory environment.

What do Airbnb hosts in Markham on Reddit and Bigger Pockets think about local regulations?

I did not find any specific discussions from Airbnb hosts in Markham on Bigger Pockets forums commenting on the city's short-term rental regulations in the provided search results. Bigger Pockets is more focused on long-term rentals and real estate investing in general.

One relevant Reddit thread from r/Markham had some comments providing insight into the sentiment of some hosts and residents:

• One user noted "In May 2018, Markham City Council amended a series of Zoning By-Laws to define and effectively prohibit short-term rental accommodations within the City, therefore property owners are not permitted to use their residential property as a short-term rental."
• In response, another said "Who's enforcing it? Certainly Airbnb can de-list the Markham properties but nope. Once again, Scarpitti passes empty by-laws that aren't enforced as it's complaint-based that you can't anonymously report." This suggests some skepticism that the city is actively enforcing the rules.
• One person mentioned they had just rented an Airbnb in Markham the previous week, indicating that some short-term rentals are still active despite being illegal.
• Another user countered "I know someone who was reported by their neighbor and fined by the city for their Airbnb, so I wouldn't say it's not being enforced." This shows that there are some consequences for hosts violating the rules.

The thread highlights the tension between the city's official prohibition on short-term rentals and the reality that some Airbnb properties continue to operate under the radar. It seems hosts are divided between those who feel the rules are toothless and not consistently enforced, and those who have faced penalties for non-compliance.

More systematic research on host forums would be needed to gauge overall sentiment and experiences. However, the regulatory risk for Airbnb hosts in Markham appears to be quite high compared to cities with legal and regulated short-term rentals.

In summary, the City of Markham prohibits short-term rentals of less than 30 days in residential properties anywhere in the city. Homeowners can rent out up to two bedrooms in their principal residence only, and only for periods of 30 consecutive days or more. The city does not have a short-term rental licensing system or specific taxes since this activity is not allowed under zoning.

Enforcement seems to be largely complaint-based, with some illegal rentals still operating but facing potential fines if reported by vigilant neighbors. Compared to other GTA cities, Markham has taken one of the strictest stances against short-term rentals in an effort to maintain the character and stability of residential neighborhoods.

Homeowners should carefully review Markham's short-term rental prohibition and applicable zoning regulations before considering renting out rooms. Starting a true Airbnb-style short-term rental business is simply not legally permitted. Long-term rentals of 30+ days are allowed but limited in scale to two bedrooms in an owner's principal residence.