Several GTA municipalities have no short term rental licensing by-law: no licence fee, no registration number, no night cap. If you are looking for where to buy an Airbnb investment property in the Greater Toronto Area, these are the cities that come up.
Before you act on that, there is a second question that matters more than the licence question, and almost nobody asks it. This guide covers both, city by city, updated August 2026.
No Licence Does Not Mean Permitted
Ontario zoning by-laws are permissive. A use is allowed only where the by-law lists it as a permitted use in that zone. A use that appears nowhere in the by-law is not permitted anywhere, whether or not the municipality has a licensing regime.
In August 2026 the Town of Whitby confirmed in writing that short term rentals are not permitted anywhere within the Town, because the term appears nowhere in either of its two zoning by-laws. Whitby has no STR licensing by-law either, and for years that absence was read across the industry as permission. It was not.
So there are two questions, not one. Is there a licensing by-law? And is short term rental a permitted use in this property's zone? This page answers the first for each city. Only the municipality can answer the second for your address, and you should get that answer in writing before you buy.
The Unregulated Advantage
In regulated cities like Toronto, hosting on Airbnb means:
- $58/year license fee plus registration requirements
- 6% Municipal Accommodation Tax on every booking
- 180-night annual limit for entire-home rentals
- Principal residence requirement (no investment properties)
- Potential fines up to $100,000 for non-compliance
In unregulated cities, you face none of these restrictions. You can rent investment properties, host year-round with no night limits, keep 100% of your rental income (no MAT), and operate without registering with the city.
Key Benefits of Unregulated Cities
Durham Region: The Eastern Opportunity
Durham Region is the largest concentration of unregulated STR markets in the GTA. While Oshawa introduced licensing in 2024, the rest of the region remains open.
Ajax
Population: 126,000 | Region: Durham
Average Revenue: $2,800-$3,800/month
Demand Drivers: Waterfront properties, GO Transit access, proximity to Pickering Casino
Ajax offers lakefront properties along Lake Ontario with easy GO Train access to downtown Toronto. The absence of regulations makes it attractive for investors looking to build a STR portfolio in the GTA.
Pickering
Population: 99,000 | Region: Durham
Average Revenue: $2,600-$3,600/month
Demand Drivers: Pickering Casino Resort, Rouge National Urban Park, GO Transit
The Pickering Casino Resort draws visitors year-round, creating consistent demand for nearby accommodations. Rouge National Urban Park attracts nature tourists, and the GO station provides easy Toronto access.
Clarington
Population: 107,000 | Region: Durham
Average Revenue: $2,400-$3,400/month
Demand Drivers: Rural escapes, nature tourism, quieter alternative to urban GTA
Clarington offers a more rural feel while still being within the GTA. Properties here appeal to guests seeking a quieter escape from the city, with lower competition than more urban markets.
Brock
Population: 12,500 | Region: Durham
Average Revenue: $2,200-$3,200/month
Demand Drivers: Lake Simcoe access, cottage country feel, outdoor recreation
Brock offers a cottage country experience at the northern edge of Durham Region. Lake Simcoe properties are particularly popular during summer months, with growing demand for year-round outdoor activities.
Whitby sits between Ajax and Oshawa and has no STR licensing by-law, which is why it appeared on lists like this one for years. In August 2026 the Town confirmed in writing that short term rentals are not permitted anywhere within it, because the term appears nowhere in either of its zoning by-laws. Rentals of 28 days or longer are the path there.
York Region: Premium Markets Without Restrictions
While Markham has effectively banned STRs and Aurora/Newmarket require licenses, two York Region municipalities remain open.
Richmond Hill
Population: 202,000 | Region: York
Average Revenue: $2,800-$4,500/month
Demand Drivers: Business travelers, visiting families, wedding guests, corporate relocations
Richmond Hill is the largest unregulated market in York Region. Premium neighborhoods like Oak Ridges and Bayview Hill command strong rates. However, the city is actively exploring STR options, so regulations may come in 2026-2027.
King Township
Population: 27,000 | Region: York
Average Revenue: $3,000-$5,000/month
Demand Drivers: Luxury estates, equestrian events, golf tourism, wedding venues
King Township is horse country with luxury estates and premium properties. The area attracts wealthy guests for weddings, golf weekends, and countryside retreats. Lower volume but higher rates make it attractive for the right property.
Recently Regulated: Burlington (May 2025)
Burlington was previously one of the most valuable unregulated markets in the GTA. As of May 1, 2025, that changed with the introduction of By-law 01-2025.
If you were operating in Burlington without a license, you now need to get compliant. Burlington requires principal residence, licensing, $2M insurance, and has a 183-night annual limit with a demerit point system similar to Oakville's.
Read our complete Burlington STR guide →
With Burlington now regulated, Halton Region has no remaining unregulated cities for STRs. Oakville has strict regulations, Milton requires licensing, and Halton Hills prohibits STRs entirely.
Regulated vs Unregulated: The Numbers
Here's how hosting in an unregulated city compares to Toronto:
Example: Annual Savings in an Unregulated City
For a property earning $40,000/year in gross bookings:
- Toronto MAT (6%): $2,400/year lost to tax
- Ajax MAT (0%): $0 lost to tax
- Annual Savings: $2,400+ (plus no license fees, no compliance costs)
Cities to Watch: Regulations Coming
These cities are currently less regulated but are actively developing STR bylaws:
Status: Short term rentals are NOT permitted
Timeline: In force now
Neither zoning by-law 1784 nor 2585 contains the term short term rental, and Ontario zoning is permissive. The Town confirmed in writing in August 2026 that STRs are not permitted. Bed and breakfast only, in select zones. Enforcement is complaint based.
Status: Principal residence required by zoning
Timeline: In force now
Consolidated Zoning By-law 8149/24 applies city wide. Section 4.38 restricts short term rental to the operator's principal residence, one per dwelling. No licence, but investment properties do not qualify.
Status: Exploring licensing, MAT, and registry options
Timeline: Under review
500+ STR listings, relies on existing noise/parking bylaws only
Status: Part of regional STR bylaw review
Timeline: Following Kitchener/Waterloo implementation
Currently less regulated than Kitchener/Waterloo
Getting Started in an Unregulated City
Even without municipal regulations, there are still requirements to operate legally:
1. Insurance
Get $2,000,000+ liability insurance that explicitly covers short-term rental activity. Standard homeowner's insurance doesn't cover STR guests. Airbnb's Host Protection Insurance is secondary coverage only.
2. Condo Rules
Even in unregulated cities, your condo corporation can prohibit STRs. Check your declaration, bylaws, and rules. Get written confirmation if possible.
3. HST Registration
If you earn $30,000+ annually from STRs, you must register for HST and collect 13% on bookings. This applies regardless of municipal regulations.
4. Income Tax
All rental income must be reported to the CRA. Keep records of income and expenses. The 2024 federal rule denies deductions for non-compliant STRs in regulated areas, but this doesn't apply to unregulated cities.
5. Property Standards
General property standards, noise bylaws, and parking regulations still apply. Maintain your property and be a good neighbor to avoid complaints.
Frequently Asked Questions
Which GTA cities have no Airbnb licence requirement?
As of August 2026, Ajax, Clarington, Brock, Richmond Hill and King Township have no short term rental licensing by-law. That is not the same as short term rental being permitted. Ontario zoning is permissive, meaning a use is allowed only where the zoning by-law lists it as permitted, so the absence of a licensing regime tells you nothing about whether the use itself is allowed. Confirm the zoning question with each municipality for your specific address.
Does no licence mean short term rentals are allowed?
No, and this is the single most expensive misunderstanding in GTA short term rental investing. Whitby has no STR licensing by-law, and in August 2026 the Town confirmed in writing that short term rentals are not permitted anywhere within it, because the term appears nowhere in either of its zoning by-laws. A municipality with no licensing framework may be permissive, may be silent, or may prohibit the use entirely. Only the municipality can tell you which.
Can I Airbnb an investment property in Ajax or Pickering?
Not in Pickering. Consolidated Zoning By-law 8149/24 is in force and section 4.38 requires the dwelling be the principal residence of the person operating and residing in the short term rental, so investment properties do not qualify. Ajax has no licensing by-law and therefore no principal residence rule in one, but the zoning question should still be confirmed with the Town for your address. Ajax also charges a 5% Municipal Accommodation Tax on short term rentals.
Which of these cities charge Municipal Accommodation Tax?
Ajax charges 5% on short term rentals under By-law No. 09-2025, covering hotels, motels, bed and breakfasts and short term rentals through Airbnb, VRBO and similar platforms, on stays of 28 days or less. Airbnb hosts can apply it using Ajax tax code 202509. Clarington, Brock, Richmond Hill and King Township do not currently charge MAT on short term rentals. Nearby Oshawa charges 5% and Toronto charges 6%.
What happened to Burlington's unregulated status?
Burlington introduced complete STR regulations (By-law 01-2025) effective May 1, 2025. It now requires principal residence, licensing, $2M insurance, and has a 183-night annual limit with a demerit point system. See our Burlington STR guide for full details.
What is the safest way to check before buying?
Email the municipality's planning department, give them the specific address, and ask two separate questions: is there a short term rental licensing by-law, and is short term rental a permitted use in this property's zone. Get the answer in writing and keep it. The second question is the one that matters and the one almost nobody asks.
Do I still need insurance where there is no licence requirement?
Yes. Regardless of city regulations, you should have $2,000,000+ liability insurance that explicitly covers short-term rental activity. Standard homeowner's insurance typically doesn't cover STR guests.
What about condo rules?
A condominium corporation can prohibit short term rentals through its declaration or rules even where the municipality permits them. It cannot grant permission the municipality's zoning does not give. Check both.
Ready to Start Hosting in an Unregulated Market?
Nurture manages properties across the GTA, including all the unregulated markets covered here. Our full management service handles guest communication, pricing optimization, and operations while you collect passive income.
Get Your Free Estimate