Crackdown arrives amid escalating Canada-wide housing crisis
Montreal’s short-term rental regulations have sparked debate among property managers, tourism officials, and researchers, showing differing views on the rules’ impact on rental availability, the tourism economy, and enforcement feasibility.
In March, Montreal’s city council approved a bylaw that limits short-term rentals of principal residences to the period between June 10 and Sept. 10 annually.
Hosts are required to pay a $300 permit fee and follow provincial registration mandates. Commercial short-term rentals remain permitted but only on select streets and neighbourhoods.
Despina Sourias, the city councillor responsible for housing, explained that enforcement under prior rules was complicated because owners could avoid fines by claiming the rental as their main residence. The new bylaw shifts responsibility of proof to owners instead of inspectors.
She said, “You don't have your permit, you get a ticket. If you're doing it outside the time that you're allowed to do it, you get a ticket.”
The changes come after a fire in Old Montreal in March 2023 caused seven deaths, six of whom were Airbnb guests staying in prohibited areas. Following the tragedy, the provincial government required platforms like Airbnb to list only rentals with valid tourism license numbers and expiry dates. The city also increased inspection efforts.
Despite these actions, Montreal’s mayor noted that more than half of the approximately 4,000 short-term rental listings were not in compliance with provincial regulations.
The new rules have drawn criticism from the province’s tourism department and rental platforms. They argue that the measures could harm the tourism sector and have minimal effect on housing affordability.
Alex Howell, Airbnb’s policy lead for Canada, described the bylaw as “extreme and short-sighted,” warning it would raise hotel prices and make travel more costly for Quebec residents. She said that nearly 140,000 people stayed in Montreal Airbnbs last year.
Saif Yousif, a property manager overseeing about 80 short-term rentals in Montreal and Mont-Tremblant, said the regulations are too restrictive. Many homeowners use short-term rentals while traveling, but the rules, he said, “make it difficult for them to take vacations or take some time off and leave the city.”
Yousif also said the policy is unlikely to return properties to the long-term rental market and suggested that building additional housing would be a more effective solution to rental price pressures.
The province’s tourism department warned that the regulations might push operators toward illegal rentals, potentially worsening housing issues.
David Wachsmuth, Canada Research chair in urban governance at McGill University, said the bylaw simplifies enforcement by enabling automatic fines for rentals operating outside approved zones during off-season months. He described this as a significant change in Montreal’s approach to short-term rentals.
Wachsmuth also stated that research indicates communities with short-term rental regulations experience slower rent increases than those without such policies.
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