Montreal Short Term Rental Regulation: A Guide For Airbnb Hosts

What are the Short-Term Rental Regulations in Montreal, Canada?

Montreal, a vibrant and culturally rich city, has seen a surge in short-term rentals through platforms like Airbnb and VRBO. However, to ensure a balanced housing market and protect the interests of both hosts and guests, the city has implemented a set of regulations governing these rentals. If you're considering renting out your property or staying in a short-term rental in Montreal, it's crucial to understand these rules.

Registration and Licensing Requirements

To legally operate a short-term rental in Montreal, hosts must obtain a classification certificate from the Corporation de l'Industrie Touristique du Québec (CITQ)3513. This certificate is mandatory for anyone renting out accommodations to tourists for periods of 31 days or less511. As of May 1, 2020, hosts must display their establishment number on any advertisement for their rental property, both online and offline513.

To apply for a CITQ classification certificate, hosts must provide proof of civil liability insurance coverage of at least $2,000,000 per event, exterior and interior photos of the property, and additional documentation for condos or rentals13. An application fee of $51.50 is charged upon submission13.

Zoning Regulations and Municipal By-Laws

In addition to the CITQ certificate, hosts must ensure their property is located in an area zoned for short-term rentals. Zoning regulations vary by borough, with some areas prohibiting tourist homes altogether59. Hosts should contact their borough's permit counter to determine if their property is in an authorized area9.

Hosts must also comply with municipal by-laws related to health, sanitation, and safety513. This includes avoiding the installation of key boxes or similar items for tourists on public property and limiting the number of guests based on property size and location513.

Tax Obligations

Short-term rental hosts in Montreal are required to collect and remit several taxes on their rental income1113:

• 3.5% lodging tax on the rental price
• Federal Goods and Services Tax (GST) and Quebec Sales Tax (QST) if annual revenue exceeds $30,000

Enforcement and Penalties

Montreal has been cracking down on illegal short-term rentals, with inspectors identifying non-compliant listings and issuing fines1217. Hosts who violate regulations face penalties of up to $50,000, while platforms like Airbnb can be fined up to $100,000 per illegal listing121417.

Despite strict enforcement, many hosts continue to operate illegally, with only 30% of Airbnb listings in Montreal being legal as of spring 20231215. Discussions on forums like Reddit and Bigger Pockets suggest that while Montreal is less Airbnb-friendly than some cities, determined hosts find ways to navigate the rules and operate profitably1819.

Conclusion

Montreal's short-term rental regulations aim to balance the benefits of home-sharing with the need to maintain a stable housing market and protect public safety. Hosts must obtain proper licensing, comply with zoning laws and municipal by-laws, and fulfill their tax obligations. While enforcement has increased, the short-term rental market remains attractive for investors willing to navigate the legal requirements. By understanding and adhering to these regulations, hosts can build successful and compliant short-term rental businesses in Montreal.

Starting a Short Term Rental Business in Montreal

Montreal has become an increasingly popular destination for tourists from around the world, attracting over 11.1 million visitors in 2019 alone. This surge in tourism has created a thriving market for short-term rentals, providing an opportunity for savvy investors to enter the lucrative Airbnb business. However, starting a successful short-term rental venture in Montreal involves more than simply listing a property on an online platform. It requires a thorough understanding of local regulations, strategic property selection, and crafting an appealing listing that stands out in a competitive market.

Before diving into the short-term rental market, aspiring hosts must carefully consider their property's location and amenities. Choosing a property in a desirable neighborhood, close to popular attractions, public transportation, and dining options can significantly boost its appeal to potential guests. Additionally, investing in high-quality furnishings, modern appliances, and attractive decor can help create a memorable experience that encourages positive reviews and repeat bookings.

Short Term Rental Licensing Requirement in Montreal

To legally operate a short-term rental in Montreal, property owners must obtain a classification certificate from the Corporation de l'Industrie Touristique du Québec (CITQ). This certificate is mandatory for anyone renting out accommodations to tourists for periods of 31 days or less. As of May 1, 2020, hosts are required to prominently display their establishment number on any advertisement for their rental property, both online and offline.

In addition to the CITQ certificate, hosts must ensure their property is located in an area zoned for short-term rentals. Zoning regulations vary by borough, with some areas prohibiting tourist homes altogether. For example, the Ville-Marie borough, which includes popular neighborhoods like the Old Port and the Gay Village, has strict limitations on short-term rentals in residential areas. Hosts must carefully review their borough's zoning bylaws to ensure compliance before listing their property.

Required Documents for Montreal Short Term Rentals

To apply for a CITQ classification certificate, hosts must provide several key documents:

• Proof of civil liability insurance coverage of at least $2,000,000 per event
• Exterior and interior photos showcasing the property's condition and amenities
• For condos or rentals, provisions from the declaration of co-owners or rental contract explicitly allowing tourist accommodation, or written authorization from the property owner and/or association of co-owners

An application fee of $51.50 is charged upon submission of the required documents. Processing times for CITQ certificates can vary, so hosts should plan accordingly and apply well in advance of their intended launch date.

Montreal Short Term Rental Taxes

Hosts operating short-term rentals in Montreal are responsible for collecting and remitting several taxes on their rental income:

• A 3.5% lodging tax on the total rental price, which must be collected from guests and remitted to the government
• Federal Goods and Services Tax (GST) and Quebec Sales Tax (QST), if the host's annual revenue exceeds $30,000

Failure to properly collect and remit these taxes can result in significant penalties and legal consequences. Hosts should consult with a tax professional to ensure compliance with all applicable tax laws.

Montreal wide Short Term Rental Rules

In addition to obtaining a CITQ certificate and complying with zoning regulations, hosts must adhere to several city-wide rules governing short-term rentals:

• Avoid installing key boxes or similar items intended for tourist access on public property, as this is prohibited by the city
• Comply with all municipal health and sanitation regulations, including proper waste disposal and maintaining a clean and safe environment for guests
• Limit the number of guests based on the property's size and location, in accordance with local occupancy regulations

Failure to comply with these rules can result in fines, legal action, and the revocation of a host's CITQ certificate.

Does Montreal strictly enforce STR rules? Is Montreal Airbnb friendly?

In recent years, Montreal has taken a more aggressive stance on enforcing short-term rental regulations. In 2023, the city deployed a dedicated squad of inspectors tasked with identifying non-compliant listings and issuing fines to violators. Hosts who violate regulations can face penalties of up to $50,000, while platforms like Airbnb can be fined up to $100,000 per illegal listing.

Despite the strict enforcement measures, many hosts continue to operate illegally in Montreal. As of spring 2023, only an estimated 30% of Airbnb listings in the city were fully compliant with local regulations. Discussions on popular real estate forums like Reddit and Bigger Pockets suggest that while Montreal is less Airbnb-friendly than some other cities, determined hosts are finding creative ways to navigate the rules and operate profitable short-term rental businesses.

Compared to other major Canadian cities, Montreal's short-term rental regulations are relatively stringent. For example, Toronto has a more permissive approach, allowing hosts to rent out their primary residence without obtaining a license. Vancouver, on the other hand, has implemented a licensing system similar to Montreal's, but with lower fees and less strict enforcement.

How to Start a Short Term Rental Business in Montreal

• Thoroughly research local regulations and zoning laws specific to your property's borough to ensure compliance
• Obtain a CITQ classification certificate and any necessary permits from your local borough office
• Ensure your property meets all safety standards and is properly insured with the required liability coverage
• Create an appealing Airbnb listing with professional photos, detailed descriptions, and a competitive pricing strategy
• Set competitive prices based on market research, seasonality, and the unique features of your property
• Implement a reliable booking and guest communication system to streamline operations and provide prompt customer service
• Develop a comprehensive cleaning and maintenance plan to ensure a consistently high-quality guest experience
• Stay up-to-date with changes in local regulations and platform policies to maintain compliance and avoid penalties

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

For questions about short-term rental regulations and zoning in Montreal, hosts can contact:

• Their borough's permit counter: Find contact information for each borough at https://montreal.ca/en/how-to/areas-where-operating-tourist-home-authorized
• Corporation de l'Industrie Touristique du Québec (CITQ): Call 1-800-567-1741 or email info@citq.qc.ca for assistance with classification certificates and general regulatory inquiries

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

• Reddit user "Samantha1054" asks about the legality of renting apartments and subletting them on Airbnb in Montreal, suggesting that some hosts are finding creative ways to navigate the city's strict regulations.
• A Bigger Pockets forum thread titled "Starting a business in Montreal" features a lively discussion about the challenges of operating short-term rentals legally in the city, with experienced hosts sharing strategies for compliance and success.

In conclusion, while Montreal's strict short-term rental regulations present challenges for aspiring Airbnb hosts, the city's thriving tourism industry continues to offer attractive opportunities for investors willing to navigate the legal landscape. By thoroughly understanding local rules, obtaining necessary permits, and creating a high-quality guest experience, hosts can build successful and compliant short-term rental businesses in this vibrant Canadian metropolis. As the regulatory environment continues to evolve, staying informed and adaptable will be key to long-term success in Montreal's dynamic short-term rental market.