There are a number of regulations one must comply with before starting to short-term rent their property, many of which are specific not only to each province but to each borough. The following article will look at the bylaws in the province of Quebec, and then more specific regulations relating to the city of Montreal. To get more information about short-term rental regulations in Montreal, you can also read Airbnb's article.
Regulations in the province of Quebec
Before looking at the regulations regarding the city of Montreal, it is important to know the regulations regarding short-term renting in the province of Quebec.
Should I get a certificate of classification to rent out my property short-term?
The certificate of classification gives you the authorization to operate an establishment as a short-term rental unit. There are three cases worth looking at which will decide whether or not you are required to get one:
- If you are wanting to rent out one or many of your residences (outside your primary residence), on a regular basis, for a short period of time (fewer than 31 days), in exchange for money, and you are a moral person, you must get a certificate of classification.
- In the case that you are a person who offers one or many residences for rent that don't belong to you and your residence meets the criteria listed in the aforementioned bullet point, you must also get a certificate of classification.
- If you are renting out your primary residence, you are not required to get a certificate of classification, unless you wish to do so. Nevertheless, other restrictions may apply depending on your municipalities regulations.
A residence is defined by Tourisme Québec as being either a suite, an apartment, a house, a cottage, a site for camping, or a ready-to-camp.
A 'regular basis' is defined as:
- Recurrent (returning, repeating);
- Constant (which has an appearance of being permanent, continuous or stable);
- Habitual (which is constant, frequent).
To obtain a certificate of classification you must also:
- Follow municipal regulations.
- Have a C$ 2 million liability insurance.
- Make your listing public (i.e Airbnb).
- Your establishment must pass an inspection done by the CITQ classifier.
What does the CITQ classifier look at?
- The quality of the different rooms.
- How the latter is conserved and maintained.
- How clean your residence is.
- What services you are offering.
- Certain elements of sustainable tourism (e.g. easy access to public transportation, located near shopping centers, etc).
Even if you are NOT required to hold a classification certificate, you must ensure:
- That it is allowed in your municipality.
- Declare the income generated from rent.
- To charge customers the tax on lodging and pay it to Revenu Québec, just like the GST and the QST, if they apply.
A tax on lodging must be collected every time a unit is rented out for more than 6 hours and is collected on a regular 24-hour basis. It is important to note that Airbnb automatically collects this tax and remits it to Revenu Québec. To learn more, click here.
It is also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.
There are other guidelines that you may have to follow depending on the platform you are using to rent out your residence. In the case of Airbnb's guidelines in Canada regarding safety, respecting neighbours, and others, you may see them by clicking here and for more information about regulations in the province of Quebec, you can view them by clicking here.
Penalties of up to C$ 50,000 can be given in the case of non-conformity to short-term rental regulations.
It is important to note that short-term renting is still fairly new. Much of the regulations surrounding short-term renting is still being revised, which is why we still recommend you call your municipality and ask them about the possibility of doing short-term renting.
There are also zoning laws in certain municipalities in the province of Quebec that you must follow, in addition to having a classification certificate (depending on whether or not you are required to get one). In Montreal and each individual borough, these laws fall under the Master Plan, which looks at the city's planning and development vision, including land use and building density policies.
Montreal now restricts the use of lockboxes on public property (i.e. parking meters, fences, bike racks, etc). In order to implement this new decision, the city has asked its blue-collar workers to cut these lockboxes when seen on public property.
Restrictions in downtown Montreal
Your property must have a distance of at least 150m between each short-term rental unit. The areas where this law applies are shown in the image below.
Certain areas in downtown are not permitted to have a short-term rental property. The areas affected by this regulation can be seen in the image below.
Restrictions in the South-West area of Montreal
In order to receive a classification certificate, your short-term rental unit must fall under the category of either a bed and breakfast or an apartment-hotel. For more information on this area, click here.
Restriction in the Plateau-Mont-Royal
This borough has recently passed bylaws which limit the possibility to rent short-term in specific zones. The zones allowed are on St- Laurent Blvd. between Sherbrooke St. and Mont-Royal Ave., and on St-Denis St. between Sherbrooke and Gilford Sts. In these areas, you must acquire a certificate of classification (unless you already have one).
In the case that you are renting your primary residence, you do not need to get a certificate of classification. To view an interactive map of these zones, click here and select "Hébergement Touristique". If you held a permit before these bylaws passed, the new zones do not apply to you and you may continue to rent short-term with no issue.
Restrictions in other boroughs
For other boroughs and to gain more information, visit Montreal's website and select the borough in which you would like to rent out your property and contact them directly.
Luckey is committed to regularly informing its property owners of any and all changes relating to short-term rental regulations, to make their renting experience as simple and easy as possible.
We recommend that you do your own research as this article isn’t comprehensive, and doesn’t constitute legal or tax advice. Also, as we don’t update this article in real time, please check each source and make sure that the information provided hasn’t recently changed.