Mohammad  Teimouri

Mohammad Teimouri

Sales Representative

Sutton Group-Admiral Realty Inc., Brokerage *

(416) 739-7200
Email Me

Short term rental ban lifted

Ontario Lifts Ban on Short-Term Rentals

Provincial government would be lifting its ban on short-term rentals as of Friday, June 5 at 12:01 am. The ban, issued under Ontario’s Emergency Management and Civil Protection Act, came incame into effect as of 11:59 pm on Saturday, April 4, and restricted short-term rentals from housing anyone other than individuals “who are in need of housing during the emergency period.”

This means short-term rentals, including lodges, cabins, cottages, homes, condominiums and B&Bs, will be allowed to resume operations in Ontario.

However, the government has yet to announce any specific details or guidelines around the rentals. (credit to

Short term rental and Air bnb

What would this mean for real estate market?

As you may have heard or experienced, in most of GTA, if you buy a condo apartment or a house, and rent it out. Normally income generated from rent of the single door property is not sufficient to cover all cost of the property (mortgage, insurance, property tax…) and your property won't generate cash flow! So short term rentals, as a way to generate more income, appealed attractive to some of investors. (such as Air bnb.)

During Covid-19 emergency period that province had banned short term rental and Air bnb, most of those property owners decided to switch to long term rent to cover their expenses. This caused rental market to get flooded by more rental homes (supply increased) and make some downward impacts on rental prices.

This wasn’t the single fact that rental prices drove down, there were a lot of factors involved such as fewer renters were willing to move due to Virus and safety precautions. Or some renters lost their job and income and they weren’t able to move!

Opening short term rental business means some investors may move back to short term rental business. So, there would be less homes in long term rental market and guess what may happen if supply comes down? That is right rent price might go back up again. What may happen if rental price goes up? More people (as first time buyer or investor) might be interested to own a house or property or condo, right? This would mean more demand and buyers that may have potential to drive home prices up.


  • we don’t know yet if there will be enough demand in short term rental that attract property owners/investors to short term market
  • we don’t know yet what would be new rules and regulations for short term lease
  • we don’t know yet if there is a second wave of Covid-19 that may cause businesses to get shutdown again
  • MOST IMPORTANTLY this is a small piece of economy and there is so many factors that will impact real estate market (such as: mortgage and lending rules, consumer confidence, supply and demand…) to have a better understanding of economy you need to study different pieces of economy and bring them together to see the bigger puzzle!


I as real estate agent, always give all the information to my clients to help them make an informed decision and every decision is unique based on one’s individual.

Contact me for free consultation.

Have Question?

By submitting this form, you are providing express consent to receive commercial electronic messages from You may unsubscribe at any time.