What are the legal requirements for co-hosting in Toronto?

 Understanding what are the legal requirements for co-hosting in Toronto is essential for anyone offering Airbnb or short-term rental management services. While co-hosting is common, the law in Toronto places full responsibility on the registered host—not the co-host—making compliance critical for both parties.

First, it’s important to understand that co-hosting itself is not directly licensed or regulated as a separate activity. Instead, it falls under Toronto’s broader short-term rental bylaws. The primary legal requirement is that the property must be the host’s principal residence, meaning the place they live and use for official purposes like taxes and identification. Investment properties or secondary homes cannot legally be used for short-term rentals, even if managed by a co-host.

Secondly, the host must be registered with the City of Toronto, and this registration number must appear on all listings, including those managed by a co-host. Co-hosts cannot operate independently without this registration. Even if a co-host handles bookings, guest communication, and cleaning, the listing must still be tied to a legally registered primary resident.

Another key legal requirement is tax compliance. Hosts (not co-hosts) are responsible for collecting and remitting the Municipal Accommodation Tax (MAT), which is currently set at 8.5% for short-term rentals. In some cases, platforms like Airbnb may collect this automatically, but ultimate responsibility still lies with the registered operator. Co-host agreements should clearly define who manages financial reporting, but legally, the host remains accountable.

Additionally, liability and accountability rules are strict. The City explicitly states that even if a co-host or property management company is involved, the registered host is fully responsible for compliance, guest safety, and bylaw adherence. This includes providing emergency contact information, safety plans, and ensuring the property meets fire and building code standards. Violations, fines, or enforcement actions are issued to the host—not the co-host.

There are also operational limits that affect co-hosting arrangements. For example, entire-home rentals are limited to 180 nights per year, while room rentals may have different rules. Co-hosts must ensure they do not exceed these limits when managing calendars or bookings. Furthermore, only one registration is allowed per dwelling unit, which prevents multiple co-hosts from operating separate listings within the same property.

In conclusion, co-hosting in Toronto is legally permitted but tightly controlled through the host’s obligations. The key takeaway is that co-hosts act as service providers, not legal operators. For businesses like Bespoke Stays, this creates an opportunity to offer compliant co-hosting services—while ensuring clients remain fully informed, registered, and actively involved in their rental operations to avoid penalties and maximize success.