How to Book a Legal Airbnb in Montreal & Vancouver Amidst New Restrictions

The headlines can be alarming for any traveler planning a trip to Canada: “Vancouver Cracks Down on Airbnb,” “Montreal Imposes Strict New Rules.” For those who prefer the local experience of a short-term rental (STR), this news creates a wave of uncertainty. Is it still possible to book an Airbnb legally and without the risk of a last-minute cancellation or, worse, being turned away at the door? The common advice to simply “read the reviews” or “ask the host” is no longer sufficient in this new regulatory environment.

The truth is, booking a compliant rental is not only possible but straightforward—if you know what to look for. The key is to move beyond trusting the listing at face value and instead adopt a mindset of active verification. This doesn’t require legal expertise, but rather an understanding of the *regulatory anatomy* of a rental listing. It involves knowing why these laws exist, how to use official tools to check a license number, and what structural differences make one type of booking safer than another.

This guide demystifies the process. We will break down the core reasons behind the crackdown, provide you with a concrete checklist to spot fraudulent listings, and equip you with a protocol for the worst-case scenarios. By the end, you’ll have the confidence to navigate the rental markets of Montreal, Vancouver, and Toronto not with anxiety, but with the assurance of a well-informed traveler.

To help you navigate this complex topic, this article will cover the essential steps and considerations for securing a compliant short-term rental in Canada’s major cities. Below is a summary of the key areas we will explore.

Why are major Canadian cities restricting short-term rentals so strictly?

The primary driver behind the stringent new regulations in cities like Vancouver, Toronto, and Montreal is a critical housing affordability and availability crisis. For years, these urban centres have grappled with historically low rental vacancy rates. Data from the Canada Mortgage and Housing Corporation’s 2024 report highlights the severity of the issue, with vacancy rates at a scant 1.6% in Vancouver and 2.2% in Montreal. In such a tight market, every available long-term rental unit is crucial for residents.

The explosion of short-term rental platforms has been identified by governments as a major contributor to this problem. A significant number of properties, particularly entire homes and apartments in desirable downtown cores, were being operated exclusively as full-time tourist accommodations. According to a March 2024 analysis, more than 19,000 entire homes in British Columbia alone were listed as short-term rentals for the majority of the year, effectively removing them from the long-term housing stock for local residents.

To counteract this trend, municipalities and provinces have implemented a core policy: the principal residence requirement. This rule generally stipulates that a host can only offer their primary home as a short-term rental. This is intended to prevent the commercialization of residential housing and ensure that the host is a resident of the community, not a remote investor. As British Columbia Premier David Eby stated, “The effect of short-term rental apps… has been the loss of thousands of long-term rental homes in the midst of a housing crisis.” The new laws, and the heavy fines for non-compliance, are a direct attempt to return those homes to the local population.

How to spot a fake CITQ or business license number on a listing?

The single most important piece of information on a short-term rental listing in a regulated Canadian city is the registration or license number. However, simply seeing a number is not enough; you must know how to perform a quick compliance audit to ensure it’s legitimate. Unscrupulous hosts may display fake, expired, or improperly formatted numbers to create a false sense of security.

In Quebec, for instance, every legal short-term rental must display a CITQ (Corporation de l’industrie touristique du Québec) registration number. This is your primary tool for verification. Similarly, Vancouver and Toronto have their own municipal license numbers. A host who cannot provide one, or who becomes evasive when asked, is an immediate red flag. The verification process is designed to be public and straightforward, empowering travelers to protect themselves.

Fortunately, spotting inconsistencies is possible if you know what to look for. Each jurisdiction has specific formats and public directories that allow you to cross-reference the information provided in a listing. Taking a few minutes to perform this due diligence can save you from financial loss and the immense stress of a cancelled trip.

Residential unit or commercial suite: which is the safer bet for long stays?

One of the key nuances in Canada’s new regulatory landscape is the distinction between renting a residential unit and a commercial one, especially for stays of 31 days or more. This choice has significant implications for both legal compliance and the risk of your booking being disrupted. In jurisdictions like Quebec, the strictest regulations apply to rentals of 31 days or less. A stay that is longer than one month often falls under different residential tenancy rules, effectively bypassing the short-term rental bylaws.

This creates a potential strategy for travelers planning longer visits: booking a residential apartment for 32 days or more can be a compliant way to secure accommodation. However, this approach is not without risks. You are still renting from an individual owner whose circumstances can change, potentially leading to a request to cancel if they need the unit back. The safest, albeit more expensive, option is to book a commercial suite, often known as an “aparthotel.” These are fully licensed, commercially zoned properties that operate like hotels and are 100% exempt from principal residence requirements.

Ultimately, the choice depends on your budget and risk tolerance. For maximum peace of mind, especially for a critical trip, a commercial suite from a reputable provider is the superior choice. For a more budget-conscious, long-term traveler who can tolerate a moderate level of uncertainty, a residential unit booked for over 31 days can be a viable and legal alternative.

The nightmare scenario of being evicted by building security mid-stay

The most acute fear for any traveler booking in a regulated city is arriving only to be denied entry, or worse, being asked to leave by building security partway through your stay. This “nightmare scenario” is a direct consequence of the crackdown on illegal rentals. Condominium boards and building managers are now actively enforcing their own bylaws, which often prohibit transient occupants, to avoid hefty municipal fines. If a host is operating illegally, you, the traveler, can be caught in the middle.

This situation arises when a host has violated their building’s rules and the principal residence requirement. With individual hosts facing potential fines of up to $50,000 in Quebec for displaying false registration information, the stakes are incredibly high. Building security personnel are trained to identify and question individuals they suspect are short-term renters. If confronted, your response can determine whether the situation escalates.

While distressing, it is essential to be prepared. Knowing your rights and having a clear protocol can help you manage the situation effectively. Your first priority is to remain calm and avoid escalating the confrontation. You should also be prepared to contact your host and the rental platform’s safety line immediately. Modern platforms like Airbnb have built-in protections like AirCover, which can assist with rebooking and cover additional expenses, but you must initiate the process correctly.

Here is a step-by-step emergency protocol if you are ever confronted by building security:

1. Stay Calm and De-escalate: Calmly state, “I am a personal guest of [Host’s Name].” Avoid using terms like “Airbnb,” “rental,” or “booking.”
2. Contact the Host Immediately: Have the host’s direct phone number saved and ready. They need to resolve the issue with their building management.
3. Document Everything: If it is safe to do so, document the encounter. Note the time, date, and the security guard’s name or badge number.
4. Activate Platform Support: Contact the platform’s 24/7 safety or emergency line through the app. Explain the situation and formally request assistance under their booking protection guarantee.
5. Keep All Receipts: If you are forced to relocate, keep every receipt for emergency accommodation, transportation, and other unexpected costs for your reimbursement claim.

When to check for local bylaw updates before your trip?

In the fast-evolving world of short-term rental regulations, booking a compliant property is not a one-time check. The legal landscape is dynamic, with municipalities frequently updating bylaws and enforcement strategies. A listing that is compliant today might not be in six months. Therefore, a key part of your due diligence is to perform checks at multiple points in your travel timeline.

The most significant regulatory shifts, like Quebec’s new tourist accommodation law which took full effect in 2023, have already been implemented. This law solidified the requirement for hosts to acquire and display official registration numbers for any rental period of 31 days or less. However, smaller-scale changes, license renewals, or even host-specific license revocations can occur at any time. A proactive approach to verification is your best insurance against unpleasant surprises.

Setting up a simple alert system and scheduling a few quick follow-up checks can make all the difference. This ensures that both the local laws and your host’s specific registration remain valid right up until your arrival. Here is a recommended timeline for your compliance checks:

• At Booking Time: This is your most thorough check. Verify the host’s license number in the official city/provincial directory. Confirm the address matches and check the current municipal rules regarding principal residency.
• One Month Before Travel: Re-verify the license status. This quick check protects you against any recent rule changes or a host losing their license in the interim.
• One Week Before Travel: Send a polite message to your host confirming their registration is still active and that they are ready for your arrival. This serves as a final confirmation and opens a line of communication.
• Ongoing Monitoring: For long-lead bookings, set up a Google Alert for phrases like “[City Name] short term rental bylaw.” This will notify you of any major news or proposed regulatory changes that could impact your trip.

The visitor tax mistake that adds 15% to your hotel bill in major cities

A common misconception is that booking a short-term rental is always a way to avoid the multiple taxes levied on hotel stays. In Canada’s regulated market, this is no longer true. Legal short-term rentals are required to collect and remit the same taxes as hotels, including the federal Goods and Services Tax (GST), Provincial Sales Tax (PST/QST), and a specific Municipal Accommodation Tax (MAT). When comparing prices, it’s crucial to look at the final, all-in cost.

The complexity of these taxes can lead to confusion. For example, Toronto is set to temporarily increase its Municipal Accommodation Tax from 6% to 8.5% between June 2025 and July 2026 for the FIFA World Cup, a detail that could easily be missed. Furthermore, platforms like Airbnb and Vrbo add their own significant service fee on top of the base rate and taxes, which is not present in a direct hotel booking. This fee can often make a rental with the same “nightly rate” as a hotel significantly more expensive overall.

Let’s look at a realistic cost comparison for a C$200 per night stay in Montreal. While the taxes are nearly identical, the platform fee dramatically changes the final price.

The key takeaway is to always compare the final checkout price, not the advertised nightly rate. A legal Airbnb offers a different kind of value—more space, a kitchen, a local feel—but it is rarely a way to save money on taxes compared to a hotel. The real “mistake” is assuming it is, and not budgeting for the full, inclusive cost.

When to book your July cottage to beat the January rush?

The regulatory scrutiny is not limited to urban centers. Canada’s popular cottage country areas—from Muskoka in Ontario to Mont-Tremblant in Quebec and Tofino in British Columbia—are also subject to strict short-term rental rules. Here, the principal residence requirement is even more critical, as many cottages are second homes for their owners, making them ineligible to be legally rented out on a short-term basis in many municipalities.

Booking a summer cottage rental now requires an extra layer of diligence. In addition to verifying the host’s license, you must also check municipality-specific rules that may govern things like maximum occupancy based on septic system capacity, seasonal fire bans, and waterfront access. The “January rush” for July cottage bookings is real, but rushing into a non-compliant rental can lead to disaster. It is far better to book a slightly less desirable but fully legal cottage than to risk having your family vacation cancelled.

Starting January 1, 2024, new federal tax rules target non-compliant properties. You can’t deduct expenses for short-term rentals if you’re not following local rules or don’t have proper permits.

– Canada Revenue Agency, 2023 Fall Economic Statement

This federal-level change from the Canada Revenue Agency adds a powerful financial incentive for hosts to comply. Those operating illegally can no longer claim expenses against their rental income, making it a much less profitable venture. This should, over time, help filter non-compliant operators out of the market. For travelers, this means you should be extra diligent when booking and use a specific checklist for cottage rentals.

• License Validity: Confirm the host’s license is valid for your entire rental period, especially if your booking crosses a calendar year when licenses are typically renewed.
• Principal Residence: Politely inquire if the property is the host’s principal residence, as this is often a requirement.
• Occupancy & Utilities: Verify maximum occupancy limits and rules regarding fire pits and water usage, as these are often tied to local bylaws and environmental constraints.

Montreal, Toronto, or Vancouver: which city suits your travel style best?

While the underlying principle of the “principal residence requirement” is consistent across Canada’s major cities, the specific rules, enforcement levels, and typical types of legal listings vary significantly. Understanding these differences can help you choose a destination that not only fits your travel style but also your tolerance for navigating rental regulations. Toronto, for example, explicitly caps entire home rentals at a maximum of 180 nights per year, a clear indicator of its strict approach.

Montreal’s system, centered around the provincial CITQ registry, is arguably the most transparent for travelers. The 6-digit number provides a clear, verifiable data point. Vancouver’s enforcement is known to be very strict, with a multi-layered system involving both a city business license and inclusion in a provincial registry. In all three cities, the most common type of legal listing is a private room or suite within the host’s own home, such as a basement apartment or a room in a downtown condo.

This comparative overview can help you gauge the booking difficulty and set realistic expectations for the type of accommodation you are likely to find in each city.

Ultimately, your choice may depend on what you’re looking for. If you seek the easiest verification process, Montreal’s clear CITQ system is advantageous. If you are comfortable with a spare room in a high-rise, Toronto offers many options. If you’re heading to Vancouver, be prepared for a more challenging search but know that the compliant listings you find (like laneway houses) can offer a unique local experience. The key is to match your expectations to the regulatory reality on the ground.

By adopting a proactive and informed approach, you can confidently book a short-term rental that is not only comfortable and convenient but also fully compliant with local laws, ensuring your Canadian adventure begins and ends on a positive note. Use the verification tools at your disposal and prioritize listings that offer transparent, easily verifiable compliance information.