Montreal limits short-term rentals like Airbnb to summer months

Montreal has put in place new rules that will limit most short-term rentals to the summer months in an attempt to ease the city's shortage of affordable housing.

Under a new bylaw adopted Tuesday, rentals through sites like Airbnb will be permitted across the city between June 10 and Sept. 10. The rest of the year, they will only be allowed in registered units within a small zone permitted by the city.

Alia Hassan-Cournol, a Projet Montréal city councillor responsible for economic development, said the changes will make more apartments available for long-term renters, and that hotels can replace the option of renting an Airbnb.

The city will be monitoring the impact of the bylaw and make changes if necessary, she said.

Montreal has struggled to get a handle on short-term rentals, despite attempts to further limit illegal rentals following a fatal fire in Old Montreal in 2023.

According to the city, more than half of roughly 4,000 units currently available on the short-term rental market are illegal. The changes could therefore free up 2,000 units to the long-term rental market.

Previously, it was up to inspectors to gather evidence and bring a case against a property owner, who was presumed innocent. Now, similar to traffic offences, property owners will have to contest fines.

Inspectors will be able to issue $1,000 fines directly to offenders for each day the rules are broken. Additional fines of $2,000 may also be issued for each day of recidivism.

In a statement, Alex Howell, a representative for Airbnb Canada, called the proposal "extreme and shortsighted" and said it would hurt "industries that rely on tourism year-round like retail, restaurants, and other small businesses."

Airbnb declined an interview request.

David Wachsmuth, an urban planning professor at McGill University, said the changes will make it easier for the city to enforce the rules while not "completely destroying" the short-term rental market, which is busiest during the summer.  

"If anybody is operating an Airbnb in Montreal in February, the city knows without a single inspection that it is illegal. That is going to make enforcement so much easier," he said.

Julien Hénault-Ratelle, Ensemble Montréal's housing critic, said the new rules should also include an exemption during winter months, from Dec. 15 to March 15.

"We see that there is a need in terms of having access to a short-term rental during this period," he said.