Montreal, grappling with a significant housing crisis, is tightening regulations on short-term rentals by announcing new measures to ban most of these rentals during the non-summer months. According to a recent statement by Mayor Valérie Plante, the restrictions will take effect on June 10, 2025.
The new policy permits short-term rentals of primary residences only between June 10 and September 10, with stringent regulations enforced throughout the rest of the year. Individuals and businesses seeking to rent properties on platforms like Airbnb will now need valid permits to operate during the summer months, emphasizing compliance by restricting rentals outside the designated period.
“We really want to support Montrealers who are tenants, especially because 65 percent of Montrealers are tenants," stated Plante, underlining the city’s commitment to aiding local renters. This initiative forms part of her broader strategy to alleviate the mounting pressure on the housing market.
The crackdown stems from the alarming trend of illegal rentals dominating the market, with the city estimating more than half of the 4,000 units listed on short-term rental platforms as non-compliant. Montreal has struggled for years to adequately enforce existing laws, and according to Plante, the model presently employed does not fit the city’s realities.
“By limiting short-term rentals throughout the territory to a single permitted period, we will facilitate the work of our inspectors who will no longer have to put together imposing files to show breaches of municipal bylaws,” she explained.
The city is also ramping up its enforcement efforts, increasing the number of inspectors from three to seven. Violators of the new regulations could face hefty fines, amounting to $1,000 per night for individuals and $2,000 for businesses. "The minute you post an apartment available out of the period that's possible, then you’ll get a fine," warned Plante, highlighting the city’s no-tolerance approach to illegal rentals.
These changes are anticipated to free up approximately 2,000 units for the long-term rental market. Critics, including Catherine Lussier from the housing rights group Front d'action populaire en réaménagement urbain (FRAPRU), view this as “a good step in the right direction.”
While Lussier is optimistic about the potential benefits, she also cautioned against expecting these new rules to fully resolve the housing crisis. “This won't solve the crisis on its own, as some of the units may still be too pricey for low-income residents to afford,” she added.
Quebec Housing Minister France-Élaine Duranceau responded to the city’s new strategy by acknowledging the need for local authorities to tailor their approaches to short-term rentals. She emphasized the importance of ensuring the measures do not adversely affect the tourism sector. “The solution to the rising cost of rents is more housing,” Duranceau said, reflecting on broader systemic issues beyond rental regulations.
On the other side, Airbnb has expressed vehement opposition to these changes, arguing they could harm the economy and impact local businesses. Alex Howell, speaking for Airbnb, noted, “The new rules would weaken the economy, harm local businesses, drive hotel prices up and punish responsible hosts who depend on additional income during a cost of living crisis.”
Efforts to regulate short-term rentals intensified following a tragic fire in Old Montreal last year, which resulted in seven fatalities and raised serious concerns over safety and illegal accommodations. Even with these new initiatives, questions linger about how effectively the city can balance the needs of tenants, short-term renters, and the tourism sector, especially amid rising living costs and housing shortages.
The upcoming months will be pivotal as Montreal implements its summer-only Airbnb policy and continues to confront the housing crisis, engaging with various stakeholders to navigate this complex and contentious issue.