Montreal City Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Montreal, Quebec?

In recent years, Montreal has seen tremendous growth in short-term rentals through platforms like Airbnb and VRBO. However, there are specific regulations that hosts must follow to legally operate a short-term rental business. Here is an overview of the key rules for short-term rentals in Montreal.

Starting a Short-Term Rental Business in Montreal

To legally rent out your property short-term in Montreal, you must first obtain a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ). This is required for rentals of 31 days or less. The application process involves:

• Providing proof of at least $2 million in civil liability insurance
• Submitting exterior and interior photos of the property
• Providing additional documentation for condos or rental properties, such as permission from the condo association or landlord
• Paying an application fee of $256

As of May 1, 2020, hosts must display their CITQ establishment number on any online or offline advertisement for their short-term rental property. Failure to do so can result in fines.

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 short-term rentals altogether. Hosts should contact their borough's permit counter to confirm if their property is eligible.

If the property is in an authorized zone, the host must obtain a commercial or professional activity occupancy permit from the borough. This permit outlines what activities are allowed under the city's urban planning bylaws. The permit must be prominently displayed in a common area of the rental property.

Hosts are prohibited from installing key lockboxes or other access devices for short-term rental guests on any public property, or they will be removed by the city. All short-term rentals must also comply with municipal health, safety, and sanitation regulations.

Despite these regulations, many short-term rentals in Montreal continue to operate illegally without proper permits or in unauthorized zones. The city has been increasing enforcement efforts in recent years, with inspectors deployed to identify and fine non-compliant listings. Fines can reach up to $50,000 for illegal short-term rentals.

However, the short-term rental market in Montreal remains strong, with high demand from tourists and lucrative opportunities for compliant hosts. Many hosts work with property management companies to navigate the complex regulatory landscape. The key is thoroughly researching the rules, obtaining all necessary permits, and strictly complying with the city's requirements to avoid penalties and ensure a successful short-term rental business.

Short-Term Rental Licensing Requirement in Montreal

Property owners must obtain a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ) to legally operate a short-term rental in Montreal. This licensing process 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 CITQ establishment number on any advertisement for their rental property, both online and offline. Failure to include this registration number can result in fines and penalties.

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

1. Proof of civil liability insurance coverage of at least $2,000,000 per event from a licensed Canadian provider.
2. Exterior and interior photos showcasing the property's condition, layout, and amenities.
3. Detailed description of the accommodation type, capacity, and services offered.
4. Floor plan with room dimensions, bed configurations, and emergency exit locations.
5. For condos or rental properties, written authorization from the building management or landlord explicitly permitting short-term rentals.

An application fee of $256 is charged upon submission of the required documents. The CITQ may request additional information during approval, such as building permits, fire safety certificates, or corporate records for company-owned properties.

Once the application is complete, a CITQ inspector will conduct a site visit to verify the property meets all safety, hygiene, and quality standards. Common requirements include working smoke and carbon monoxide detectors, fire extinguishers, and adequate means of egress.

If the property passes inspection, the CITQ will issue the classification certificate with a unique registration number. This number must be displayed on all online listings and advertisements for the short-term rental.

It's important to note that the CITQ certificate alone does not guarantee the right to operate a short-term rental. Hosts must also ensure their property is located in an area zoned for this use and obtain any necessary permits from their borough or municipality.

Zoning regulations vary widely across Montreal, with some neighborhoods prohibiting short-term rentals altogether. Hosts should carefully review the applicable bylaws before listing their property to avoid fines and legal issues.

Obtaining a CITQ classification certificate is an essential step for any property owner looking to enter Montreal's short-term rental market legally. By providing a standardized licensing process, the CITQ aims to ensure a safe and high-quality experience for guests while allowing compliant hosts to benefit from the city's booming tourism industry.

However, the application process can be complex and time-consuming, especially for first-time hosts navigating the requirements. Many owners choose to work with experienced property managers or consultants to streamline the certification process and ensure full regulatory compliance.

As Montreal continues to refine its short-term rental regulations, hosts need to stay informed about any changes to the licensing requirements or zoning restrictions in their area. Failing to maintain a valid CITQ certificate or operating in a prohibited zone can lead to significant penalties, including fines up to $50,000 per infraction.

By taking a proactive and diligent approach to licensing, hosts can minimize their risk and focus on providing memorable stays for guests in Montreal's vibrant short-term rental market. The extra effort required to obtain proper certification will pay off in the long run through increased bookings, positive reviews, and sustainable operations in this dynamic industry.

Required Documents for Montreal Short-Term Rentals

Hosts must provide several key documents when applying for a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ) to legally operate a short-term rental in Montreal. The specific requirements may vary depending on the type of property and the host's situation.

For all short-term rental properties, the following documents are required:

1. The completed application form for a classification certificate is available on the CITQ website.
2. Proof of civil liability insurance coverage of at least $2,000,000 per incident, issued by a licensed Canadian insurance provider. The policy must cover the specific risks associated with short-term rentals.
3. Detailed description of the accommodation, including the type of property, number of rooms, and maximum occupancy.
4. Photos of the exterior and interior of the property, showcasing its condition, layout, and amenities. These should include images of the bedrooms, bathrooms, kitchen, living areas, and any outdoor spaces.
5. Floor plans or architectural drawings indicating the dimensions of each room, the location of smoke detectors and fire extinguishers, and the emergency evacuation route.

Additional documents may be required depending on the property type and ownership:

For condominium units:

1. A copy of the declaration of co-ownership or condominium bylaws, demonstrating that short-term rentals are permitted.
2. A letter from the condominium association or board of directors, confirming that they authorize the use of the unit for tourist accommodations.

For tenants subletting their apartment:

1. A copy of the lease agreement, clearly stating that subletting for tourist purposes is allowed.
2. A written authorization from the landlord approving the use of the unit as a short-term rental is required.

For properties owned by a company or legal entity:

1. A copy of the company's articles of incorporation or business registration documents.
2. Proof of the company's ownership of the property, such as a property deed or tax assessment.
3. A resolution from the company's board of directors authorizes the use of the property for short-term rentals and designates an individual responsible for the CITQ certification process.

In addition to these documents, hosts may be asked to provide further information or materials during the application review process. This could include:

1. A police background check for the host or property manager.
2. Proof of compliance with municipal zoning regulations and building codes.
3. A fire safety certificate issued by the local fire department.
4. A water quality test for properties with private wells or septic systems.

It's crucial to ensure that all submitted documents are accurate, complete, and up to date. Providing false or misleading information can result in the application's rejection or the classification certificate's revocation.

Hosts should also remember that obtaining a CITQ classification certificate is just one step in legally operating a short-term rental in Montreal. They must also comply with municipal zoning laws, building regulations, and tax obligations.

To navigate the complexities of the short-term rental landscape in Montreal, many hosts choose to work with experienced property managers or consultants who can assist with the CITQ certification process and ensure ongoing compliance with local regulations.

By carefully gathering and submitting the required documents, hosts can demonstrate their commitment to operating their short-term rentals professionally and responsibly, contributing to a safe and enjoyable experience for guests while supporting Montreal's vibrant tourism industry.

Montreal Short-Term Rental Taxes

In addition to the licensing and registration requirements, short-term rental hosts in Montreal are subject to various taxes. Understanding and complying with these tax obligations is crucial for operating legally and avoiding penalties.

The primary tax that applies to short-term rentals in Montreal is the lodging tax, also known as the accommodation tax. As of 2023, the lodging tax rate is 3.5% of the nightly rental price. This tax must be collected from guests and remitted to the government.

For example, if a guest books a short-term rental in Montreal for $100 per night, the host must collect an additional $3.50 per night as the lodging tax. This tax is separate from the rental rate and must be clearly disclosed to guests at the time of booking.

It's important to note that youth tourist accommodation establishments are exempt from the lodging tax in Montreal. This exemption applies to hostels and other budget accommodations primarily serving young travelers.

In addition to the lodging tax, short-term rental hosts in Montreal may be subject to federal and provincial sales taxes, depending on their annual revenue:

• Federal Goods and Services Tax (GST): The GST is a 5% tax that applies to most goods and services in Canada, including short-term rentals. Hosts must register for and collect GST if their annual worldwide taxable supplies exceed $30,000.
• Quebec Sales Tax (QST): The QST is a 9.975% tax that applies to most goods and services in Quebec, including short-term rentals. Similar to the GST, hosts must register for and collect QST if their annual worldwide taxable supplies exceed $30,000.

If a host's annual revenue is below the $30,000 threshold, they are considered a small supplier and are not required to register for or collect GST/QST. However, they may still choose to register voluntarily to claim input tax credits on expenses related to their rental business.

Hosts who are required to collect GST/QST must include these taxes in their advertised rental prices and remit them to the appropriate tax authorities on a regular basis, typically quarterly or annually.

Failure to comply with tax obligations can result in fines, penalties, and legal consequences. The Canada Revenue Agency (CRA) and Revenu Québec have been increasing their enforcement efforts to ensure compliance in the short-term rental sector.

To simplify tax collection and remittance, some short-term rental platforms, like Airbnb, have agreements with the Quebec government to automatically collect and pay the lodging tax on behalf of their hosts. However, hosts are still responsible for registering for and collecting GST/QST if required.

As the short-term rental market continues to evolve in Montreal, it's essential for hosts to stay informed about their tax responsibilities and maintain accurate records of their rental income and expenses. Seeking the guidance of a qualified tax professional can help hosts navigate the complexities of the tax system and ensure full compliance.

By understanding and fulfilling their tax obligations, short-term rental hosts in Montreal can confidently operate their businesses and contribute to the city's thriving tourism industry. With proper planning and attention to detail, hosts can maximize their profits while staying on the right side of the law.

Quebec Wide Short-Term Rental Rules

While Montreal has its own specific regulations for short-term rentals, some provincial rules and guidelines apply throughout Quebec. These province-wide regulations aim to ensure a consistent and fair framework for the short-term rental industry.

One of the key provincial laws governing short-term rentals is the Tourist Accommodation Act. This act defines a tourist accommodation as any establishment that offers lodging for a period of 31 days or less in return for payment. It sets out the requirements for obtaining a classification certificate from the Corporation de l'industrie Touristique du Québec (CITQ).

Under the Tourist Accommodation Act, all short-term rental operators in Quebec must:

1. Obtain a CITQ classification certificate before advertising or renting out their property.
2. Clearly display their CITQ establishment number on any advertisement or listing for the rental property.
3. Comply with the standards and requirements associated with their classification category (e.g., apartment, cottage, bed and breakfast).
4. Maintain a guest register with the names and contact information of all renters.
5. Provide guests with a receipt or invoice detailing the rental period, nightly rate, and any taxes collected.

Failure to comply with these provincial regulations can result in fines ranging from $2,500 to $25,000 for individuals and $5,000 to $50,000 for corporations, per offense.

In addition to the Tourist Accommodation Act, short-term rental hosts in Quebec must also adhere to the Consumer Protection Act. This act sets out the rules for fair and transparent business practices when dealing with consumers.

Under the Consumer Protection Act, short-term rental hosts must:

1. Accurately represent their rental property in any advertisement or listing, including its location, size, amenities, and condition.
2. Disclose any additional fees or charges, such as cleaning fees or security deposits, upfront and include them in the total price.
3. Honor any reservations made by guests unless there are exceptional circumstances beyond the host's control.
4. Provide guests a safe and clean environment, free from any health or safety hazards.
5. Respect guests' privacy and do not enter the rental property during their stay without prior consent, except in case of emergency.

Hosts violating the Consumer Protection Act can face penalties, including fines and the obligation to compensate guests for any damages or losses.

It's important to note that many Quebec municipalities have specific bylaws and zoning regulations that apply to short-term rentals. These local rules may impose additional requirements or restrictions on top of the provincial laws.

For example, some cities may limit short-term rentals to certain areas or property types, require hosts to obtain a municipal permit or business license, or restrict the number of days a property can be rented out each year.

Before listing a property for short-term rental in Quebec, hosts should carefully research and comply with all applicable provincial and municipal regulations. Failing to do so can result in significant fines, legal issues, and damage to their reputation as a host.

By understanding and following the Quebec-wide rules for short-term rentals, hosts can operate their businesses with integrity and contribute to the province's safe, fair, and thriving tourism industry. With clear and consistent regulations, Quebec aims to balance the benefits of short-term rentals with the need to protect consumers and maintain the quality of life in local communities.

Does Montreal Strictly Enforce STR Rules?

Montreal has implemented a comprehensive set of regulations for short-term rentals, but the level of enforcement has been a topic of debate among hosts and industry experts. While the city has taken steps to crack down on non-compliant listings, some hosts continue to operate without fully adhering to the rules.

According to discussions on forums like Bigger Pockets and Reddit, enforcement of short-term rental regulations in Montreal has been inconsistent. Some hosts report receiving fines and notices for failing to obtain a CITQ classification certificate or violating zoning bylaws, while others claim to have operated under the radar without consequences.

One Bigger Pockets user shared their experience of being fined $2,500 for listing an unlicensed property on Airbnb. They warned other hosts to take the certification process seriously and not assume that the city won't catch on to illegal listings.

However, another Reddit user commented that they had been operating an unregistered short-term rental in Montreal for over two years without any issues. They suggested that the city's enforcement efforts focused more on large-scale commercial operators than individual hosts renting out a spare room or secondary residence.

Compared to other major Canadian cities, Montreal is generally considered to be relatively friendly towards short-term rentals. While cities like Vancouver and Toronto have implemented strict regulations and licensing requirements, Montreal has taken a more balanced approach.

The city's regulations are designed to ensure a level playing field for all accommodation providers and protect the quality of life in residential neighborhoods, while still allowing responsible hosts to participate in the short-term rental market.

However, this relatively permissive stance does not mean that hosts can operate with impunity. In recent years, the city has been ramping up its enforcement efforts and dedicating more resources to identifying and penalizing non-compliant listings.

In 2018, the city conducted over 4,000 inspections of short-term rental properties and issued more than 1,000 fines for violations of the bylaws. The fines ranged from $2,500 to $25,000 for individuals and $5,000 to $50,000 for corporations, depending on the severity and frequency of the offense.

Despite these enforcement efforts, some hosts continue to operate outside of the law. The ease of listing properties online and the potential for high profits make it tempting for some hosts to skirt the rules and hope they don't get caught.

However, the consensus among experienced Bigger Pockets and Reddit hosts is that the risks of operating an illegal short-term rental in Montreal are not worth the potential rewards. With the city's increasing focus on enforcement and the steep fines for non-compliance, hosts who fail to follow the regulations are putting their businesses and reputations at risk.

Instead, successful hosts in Montreal recommend taking the time to fully understand and comply with all applicable laws and regulations. This includes obtaining a CITQ classification certificate, ensuring the property is in a zone allowing short-term rentals, and collecting and remitting all required taxes.

While navigating the regulatory landscape may be challenging at first, many hosts find that the long-term benefits of operating a legal and professional short-term rental business outweigh the initial costs and hurdles.

In conclusion, while Montreal may be more Airbnb-friendly than some other Canadian cities, the city does take its short-term rental regulations seriously. Enforcement may not be perfect, but hosts who choose to operate illegally are taking a significant risk. The best approach for hosts is to educate themselves about the rules, obtain all necessary permits and licenses, and strive to provide a safe, high-quality experience for their guests.

How to Start a Short-Term Rental Business in Montreal

Starting a short-term rental business in Montreal can be a rewarding venture, but it requires careful planning and compliance with local regulations. Here are the key steps to get your short-term rental business up and running in Montreal:

1. Research the market and regulations: Before investing in a short-term rental property, conduct thorough research on the local market conditions, demand drivers, and competition. Familiarize yourself with Montreal's specific regulations for short-term rentals, including the requirement to obtain a CITQ classification certificate and comply with zoning laws.
2. Choose a suitable property: Look for a property that meets the city's requirements for short-term rentals, such as being your primary residence and located in an area zoned for this use. Consider factors like location, size, amenities, and target audience when selecting a property.
3. Obtain a CITQ classification certificate: Apply for a classification certificate from the Corporation de l'industrie touristique du Québec (CITQ). Provide the required documents, including proof of liability insurance, photos of the property, and a notice of compliance from your municipality. Pay the application fee and await approval.
4. Ensure compliance with municipal regulations: Contact your borough's permit counter to confirm that your property is in an authorized area for short-term rentals. Obtain any necessary permits, such as a commercial or professional activity occupancy permit, and ensure your property meets all health, safety, and sanitation standards.
5. Set up your property for guests:Furnish and equip your short-term rental with high-quality amenities and services to meet modern travelers' expectations. This may include providing comfortable bedding, fully equipped kitchens, high-speed Wi-Fi, and smart TVs.
6. Create a compelling listing:Develop an attractive and informative listing for your short-term rental on popular platforms like Airbnb and VRBO. Use high-quality photos, detailed descriptions, and competitive pricing to stand out from the competition. Ensure that your listing includes your CITQ establishment number.
7. Implement a pricing and yield management strategy: Research the market rates for similar properties in your area and develop a dynamic pricing strategy that maximizes your occupancy and revenue. Use data analytics and automation tools to adjust your prices based on demand, seasonality, and other factors.
8. Provide excellent guest service: Focus on delivering a high-quality guest experience from the moment of booking to check-out. Provide clear and timely communication, easy check-in and check-out procedures, and personalized local attractions and service recommendations. Respond promptly to guest inquiries and resolve any issues quickly and professionally.
9. Comply with tax obligations: Register with Revenu Québec and obtain a tax identification number to collect and remit the required taxes, including the 3.5% lodging tax and GST/QST if applicable. Maintain accurate records of all transactions and expenses for tax purposes.
10. Continuously improve and adapt: Monitor your performance metrics and guest feedback to identify areas for improvement. Invest in property upgrades, new amenities, and marketing initiatives to stay competitive in the market. Stay informed about changes in local regulations and platform policies to ensure ongoing compliance.

By following these steps and seeking professional advice when needed, you can build a successful and compliant short-term rental business in Montreal. While the process may seem daunting at first, with careful planning and execution, you can tap into the growing demand for unique and high-quality accommodations in this vibrant city.

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

If you have questions or concerns about short-term rental regulations and zoning in Montreal, there are several key government agencies and resources available to assist you.

The primary authority responsible for regulating short-term rentals in Montreal is the Corporation de l'industrie touristique du Québec (CITQ). The CITQ is in charge of issuing classification certificates, conducting inspections, and enforcing compliance with provincial regulations.

To contact the CITQ about short-term rental regulations, you can:

Call their customer service line at 1-800-567-1223 (toll-free) or 514-499-0550 (Montreal area)
Email them at info@citq.qc.ca
Visit their website at https://citq.qc.ca/en/ for more information and online services.

You should contact your local borough or arrondissement for inquiries about municipal zoning and permits. Each borough's urban planning department oversees land use, zoning, and occupancy permits.

To find the contact information for your borough's urban planning department, you can:

• Visit the City of Montreal's website at https://montreal.ca/en/Click on the "Your Borough" tab and select your borough from the list
• Look for the "Permits and Regulations" or "Urban Planning" section on your borough's page
• Find the contact information for the permit counter or urban planning department

If you need assistance with provincial tax obligations related to short-term rentals, you can contact Revenu Québec. Revenu Québec is responsible for administering the provincial tax system, including the collection of the lodging tax and GST/QST.

To contact Revenu Québec about short-term rental taxes, you can:

Call their customer service line at 1-800-567-4692 (toll-free) or 514-873-4692 (Montreal area)
Visit their website at https://www.revenuquebec.ca/en/ for more information and online services.

In addition to these government agencies, several industry associations and resources can provide valuable support and guidance for short-term rental hosts in Montreal.

The Association des hôtels du Grand Montréal (AHGM) is a non-profit organization that represents the interests of the hotel industry in the Montreal region. While primarily focused on traditional hotels, the AHGM also provides resources and advocacy for short-term rental operators.

To contact the AHGM, you can:

Call their office at 514-289-4685
Email them at info@ahgm.org
Visit their website at https://www.ahgm.org/ for more information and membership details.

The Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) is another industry association that represents the interests of property managers and co-owners in Quebec. The RGCQ offers training, resources, and support for short-term rental operators navigating the regulatory landscape.

To contact the RGCQ, you can:

Call their office at 514-916-7427
Email them at info@rgcq.org
Visit their website at https://www.rgcq.org/ for more information and membership details

By reaching out to these key contacts and leveraging their expertise and resources, you can navigate the complex landscape of short-term rental regulations and zoning in Montreal with greater confidence and success. Whether you are a new or experienced host, these agencies and organizations can provide the guidance and support you need to thrive in this dynamic and rewarding market.

What Do Airbnb Hosts in Montreal on Reddit and Bigger Pockets Think about Local Regulations?

Montreal's short-term rental regulations have been a hot topic of discussion among Airbnb hosts on popular online forums like Reddit and Bigger Pockets. Many hosts have shared their experiences, opinions, and advice for navigating the city's evolving regulatory landscape.

Here are a few notable examples of what Montreal Airbnb hosts are saying on these platforms:

Reddit user "MTLHost" on the r/montreal subreddit:

In a thread titled "Quebec's new Airbnb rules are in full effect," MTLHost shares their perspective as a host impacted by the recent changes. They express frustration with the complexity of the registration process and the strict zoning restrictions that have forced them to remove some of their listings. However, they also acknowledge that the regulations are necessary to address the housing crisis and ensure a level playing field for all accommodation providers.

Bigger Pockets user "InvestorMTL" on the Vacation Rental Investing forum:

InvestorMTL, a seasoned real estate investor with multiple short-term rental properties in Montreal, offers a more optimistic take on the regulations. They argue that while the rules may be challenging for some hosts, they ultimately benefit the industry by weeding out bad actors and improving the quality of listings. They also highlight the potential for savvy investors to find opportunities in areas where short-term rentals are still permitted, such as commercial streets and tourist zones.

Reddit user "AirbnbMTL" on the r/AirBnB subreddit:

In a post titled "Advice for new hosts in Montreal," AirbnbMTL shares their experience successfully navigating the city's regulations and building a profitable short-term rental business. They emphasize the importance of thoroughly researching the rules, obtaining all necessary permits, and maintaining open communication with guests and neighbors. They also recommend working with a local property management company to handle the day-to-day operations and ensure compliance.

Bigger Pockets user "MTLInvestor" on the Canada Real Estate Investing forum:

MTLInvestor, a Montreal-based investor considering entering the short-term rental market, asks for advice on the feasibility of starting an Airbnb business in the current regulatory environment. Several experienced hosts chime in, offering a range of perspectives. Some are cautious against investing in short-term rentals given the strict rules and enforcement, while others suggest focusing on properties where it is still allowed, such as the downtown core or tourist hotspots like the Plateau.

Overall, the sentiment among Montreal Airbnb hosts on Reddit and Bigger Pockets is mixed. While some express frustration with the complexity and limitations of the regulations, others see them as a necessary step towards a more sustainable and equitable short-term rental market.

A common theme is the importance of doing thorough due diligence before investing in a short-term rental property in Montreal. Hosts recommend carefully reviewing the zoning bylaws, obtaining all required permits and certifications, and having a solid business plan that accounts for the costs of compliance.

Many also suggest working with experienced professionals, such as property managers or real estate attorneys, to navigate the regulatory landscape and avoid costly mistakes. By staying informed, adaptable, and focused on providing high-quality guest experiences, hosts can still find success in Montreal's evolving short-term rental industry.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.