Everyone talks about Toronto's 180-night limit for Airbnb hosts. But here's what most people miss: that cap only applies to entire-unit rentals. If you register as a partial-unit operator, there's no annual limit at all.
This isn't a loophole or grey area. It's explicitly written into Toronto Municipal Code Chapter 547. You can legally rent up to three bedrooms in your home for up to 365 nights per year, as long as the property is your principal residence.
What Is Partial-Unit Registration?
Let's start with the official definition from Toronto's bylaw:
"PARTIAL-UNIT RENTAL – A short-term rental in which the renter occupies part of a dwelling unit." Toronto Municipal Code § 547-1.1 Definitions
In plain English: you're renting out a portion of your home (a spare bedroom, basement room, etc.) while you continue living there. The guest doesn't have the whole place to themselves. They're sharing the dwelling with you.
Examples of Partial-Unit Rentals
- Spare bedroom rental in your Leslieville semi while you sleep down the hall
- Finished basement room within the same dwelling unit while you live upstairs (NOT a self-contained basement apartment, more on that below)
- Two guest rooms in your 4-bedroom Annex home while you keep two for your family
- Spare bedroom in your Parkdale apartment that is your principal residence
The common thread: you're living there, the guest occupies a bedroom or bedrooms, and you keep at least one bedroom for yourself.
What is NOT partial-unit (even if it feels like it)
- A self-contained secondary suite with its own kitchen and bathroom that you rent out while living in the main house. That suite is its own dwelling unit under the 2024 bylaw amendment, so renting it is entire-unit.
- A laneway suite or garden suite behind your home that you rent out. Same logic, separate dwelling unit, entire-unit registration applies.
- Renting your whole place for a weekend while you stay with family. That's entire-unit, even if you call it home-sharing.
Important nuance from the City: you CAN host an STR in a secondary suite or laneway suite IF that suite is your principal residence (i.e. you live in the laneway suite year-round). It must also comply with zoning, building code, and fire code requirements. So a homeowner living in their main house who rents the laneway suite separately needs entire-unit registration on the laneway. A homeowner who actually lives IN the laneway suite can use either partial-unit (renting a bedroom of it) or entire-unit (renting the whole laneway when away).
The 180-Night Exemption Explained
Here's the specific bylaw section that makes this possible:
"No operator who holds a registration to operate an entire-unit rental shall rent a property for more than 180 nights per calendar year, regardless of whether the property is rented as an entire-unit or partial-unit rental." Toronto Municipal Code § 547-4.1.1.D
Notice the language carefully: the 180-night restriction applies specifically to operators who hold entire-unit registration. If you hold partial-unit registration, this section doesn't apply to you.
The 3-Bedroom Cap and "One Fewer Than Total" Rule
This is the part most articles miss. Partial-unit doesn't mean unlimited rooms. The City of Toronto's official operator page sets two hard limits that work together:
"You can rent up to three bedrooms in your principal residence as a partial-unit rental for an unlimited number of nights per year ... If you have registered as a partial-unit rental, you can only advertise one fewer than the number of bedrooms available in your principal residence." City of Toronto, Short-Term Rental Operators page
So your effective bedroom cap is the lesser of three bedrooms or one fewer than total bedrooms in your home. The "one fewer" rule exists because you need to keep at least one bedroom for yourself (you must remain living there as principal residence). Worked examples:
If you have a 1-bedroom condo, partial-unit registration does not work. There's no remaining bedroom for you to occupy under the "one fewer" rule. Your only legal STR path is entire-unit (180 nights) when you travel, or a mid-term rental (28+ nights, exempt from the bylaw).
Requirements for Partial-Unit Registration
To qualify for partial-unit registration, you must meet these requirements:
1. Principal Residence
The property must be your principal residence. That's where you actually live, not an investment property or second home.
"PRINCIPAL RESIDENCE – The dwelling unit where an operator ordinarily resides. For clarity, an operator's principal residence shall not include more than one dwelling unit." Toronto Municipal Code § 547-1.1 Definitions
You'll need to provide:
- Government-issued ID showing your address
- Additional documents if requested (utility bills, tax returns, vehicle registration)
2. Continued Habitation (Principal Residence)
The bylaw does not require you to be physically present in the home or in town during every booking. It requires the unit to remain your principal residence: where you "ordinarily reside" per section 547-1.1. That is a continuity-of-occupancy test, not a nightly attendance rule.
3. Registration Type Declaration
When you apply, you must explicitly choose partial-unit registration:
"On an application for a registration or its renewal, the applicant shall indicate if they intend to operate an entire-unit or partial-unit rental." Toronto Municipal Code § 547-4.1.1.A
This isn't something you can change on a whim. Once registered as one type, you're locked in for that registration period.
4. Consistent Operation
If you hold partial-unit registration, you cannot advertise or rent as an entire-unit:
"No operator who holds a registration to operate a partial-unit rental shall advertise or rent a property as an entire-unit rental." Toronto Municipal Code § 547-4.1.1.C
This means no "whole apartment" listings if you're registered as partial-unit, even occasionally.
Compliance Obligations Both Types Share
Whether you register as partial-unit or entire-unit, the following apply equally. Most enforcement action stems from breaches of these, not the night cap itself:
Registration fee: $390 per year
The City increased the fee on January 1, 2025. The 2026 registration and renewal fee is $390, paid online by credit card and non-refundable whether your application is approved, denied, or refused. Late renewal fees stack: $11.27 if 1 to 30 days late, $83.18 if 31 to 60 days late, $160 if later, and the registration is cancelled entirely if you go more than 90 days past the renewal date (you'd need to apply fresh as a new operator).
Annual renewal
Registrations are valid for one year and must be renewed online on the anniversary of your registration date. At renewal, you also report how many nights the property was used as an STR in the prior year (section 547-4.1.C).
Annual City inspections
As of 2024, the City has explicit authority to conduct annual inspections of all registered short-term rentals. Inspectors can require documents and physical access (section 547-5.2).
Municipal Accommodation Tax (8.5%)
The MAT applies to every stay under 28 consecutive nights. The current rate is 8.5%, in effect from June 1, 2025 to July 31, 2026, after which it reverts to 6%. Airbnb and VRBO collect and remit MAT automatically on bookings made through their platforms. Direct bookings (your own website, friend referrals, repeat guest by email) are your responsibility to collect and remit. You must file a tax report each reporting period regardless. See the official MAT page for filing schedules.
Display the registration number on every listing
Your registration number must appear prominently on the main page of every Airbnb, VRBO, Booking.com, or direct-booking listing. Without it, the platform is required to remove your ad within 24 hours of being asked by the City (section 547-1.3). The number must also appear on every invoice, contract, and receipt (section 547-1.4).
Emergency contact and exit diagrams (posted in the unit)
Every operator must provide guests with 24/7 emergency contact information and a physical, posted exit diagram inside the unit for the duration of the rental period (section 547-4.4). This applies to a spare bedroom rental as much as a whole-house rental.
Three years of transaction records
You must keep records for each rental for 3 years after the last day of the rental period: number of nights, nightly and total price, partial vs entire designation, and any other info the Executive Director requires (section 547-4.5). The City can audit these.
One registration per dwelling unit and per person
You can hold at most one short-term rental registration as an individual. Each dwelling unit can have only one registration. Multi-tenant house operators are explicitly prohibited from applying for STR registration. Co-owners cannot both register the same address (section 547-4 eligibility, added by By-law 503-2024).
Insurance
The City does not mandate STR-specific insurance, but explicitly recommends operators check their policy. Most standard homeowner and condo policies exclude commercial activity, so a guest injury claim could be uncovered. Most STR-aware insurers (Square One, Duuo, Wawanesa among others) sell short-term rental endorsements.
Partial-Unit vs Entire-Unit: Which to Choose?
This decision has major implications for your hosting business. Here's how to think about it:
Choose Partial-Unit If:
- You want to host year-round (no 180-night cap)
- The home is and stays your principal residence
- You have at least one spare bedroom AND at least one bedroom you keep for yourself
- You want consistent monthly income vs seasonal peaks
- You're OK sharing common spaces (kitchen, living room, often a bathroom) with guests
Choose Entire-Unit If:
- You want to rent the whole place when you travel (up to 180 nights total)
- You want to command premium rates for fully private stays
- 180 nights of hosting is enough for your income goals
- The home is still your principal residence (required for both types)
- You can fill remaining nights with mid-term (28+ day) rentals, which are exempt from STR bylaws
Important: No Switching Mid-Term
Toronto's bylaw states that your registration "shall be restricted to either entire-unit or partial-unit rentals for its entire term" (section 547-4.1.1.B). You cannot flip between the two during the one-year term. You can switch at renewal, but read the next section before you do.
Switching Types at Renewal: The Combined-Cap Trap
You can change your registration type when you renew, but the City has built in a rule that catches a lot of hosts off guard:
"If an operator renews their registration as an entire-unit rental, the 180-night limit will apply to all short-term rental activity in that calendar year, including nights previously rented as a partial-unit rental ... If the property was rented as a partial-unit rental for 150 nights, the operator may only rent the property for 30 additional nights as an entire-unit rental during the remainder of that calendar year." City of Toronto, Operator page (Entire-unit and Partial-unit Usage Example)
So switching from partial-unit to entire-unit mid-calendar-year does NOT reset your night counter. The 180-night cap applies to all STR nights in the calendar year, partial AND entire combined.
Worked example:
- Jan 1 to Aug 1: you operate as partial-unit and rent your spare bedroom for 150 nights
- Aug 1: your registration is up for renewal. You decide to switch to entire-unit for the rest of the year
- Result: you have only 30 nights left for entire-unit until Dec 31. The 150 partial nights count.
- Jan 1 of the next year: the counter resets. Full 180 nights available again.
If you rented 180 or more nights as partial earlier in the year, you cannot rent at all as entire-unit for the rest of the calendar year. The opposite direction (entire to partial) is simpler: partial-unit has no cap, so any switch in that direction restores unlimited nights immediately.
Who Should Consider Partial-Unit Registration?
Based on our experience managing properties across Toronto, partial-unit works best for:
Homeowners with Extra Space
You've got a spare bedroom in your Riverdale semi that's been collecting dust since the kids moved out. Instead of it sitting empty, it generates income every night. You're home anyway.
Work-From-Home Professionals
If you're already working from home most days, the principal-residence test is easy to satisfy and document. You're naturally there, with mail, ID, and bills tied to the address.
Retirees
You've got time, you've got space, and you might enjoy the social aspect of meeting travelers. Many retirees in Toronto's Beaches and Bloor West Village neighborhoods run successful room rentals.
People Who Want Predictable Income
With entire-unit registration, you're racing to maximize 180 nights during peak season. With partial-unit, you can host steadily year-round. Less seasonal stress, more consistent cash flow.
How to Register for Partial-Unit
The registration process is the same as entire-unit, but you'll make different selections:
- 1 Go to Toronto's STR Registration Portal
Visit secure.toronto.ca/webapps/short-term-rental/registration
- 2 Create an Account
You'll need an email address and to verify your identity
- 3 Select "Partial-Unit Rental"
When asked about your rental type, choose partial-unit. This is the critical step.
- 4 Provide Principal Residence Proof
Upload government ID showing your address. Have utility bills or tax returns ready if requested.
- 5 Describe What You're Renting
Specify which parts of your property will be used for short-term rental (e.g., "spare bedroom on second floor").
- 6 Pay the Registration Fee
$390 per year for 2026 (paid by credit card, non-refundable). The fee was raised from a lower amount on January 1, 2025 and is subject to annual increases.
- 7 Display Your Registration Number
Once approved, put your registration number on all listings. It's required.
Common Mistakes to Avoid
I've seen hosts mess up their partial-unit registration in these ways:
If you're registered as partial-unit, your Airbnb listing should be "Private room" or "Shared room," not "Entire place." The City cross-references public listings against registrations.
Partial-unit registrants can advertise at most one fewer bedroom than the home has, capped at three. Listing all 3 bedrooms of a 3-bedroom home as available is a bylaw breach even if you call yourself partial-unit. The City sees the listing math.
If your basement is a self-contained suite with its own kitchen, it's a separate dwelling unit under the 2024 bylaw amendment. Renting it is entire-unit (180-night cap), not partial-unit. The cheap kitchenette tells the City everything.
If you renew as entire-unit mid-year, every partial-unit night earlier in the calendar year counts toward the 180-night cap. Hosts who already rented 150 partial nights have only 30 entire-unit nights left until Dec 31.
The bylaw doesn't require nightly attendance. It requires the unit to remain your principal residence (where you ordinarily reside, the address on your ID and bills). Short trips are fine. Living elsewhere most of the year is not, and a long absence combined with renting the whole place would also flip you into entire-unit operation, which carries the 180-night cap.
City registration does not override your condo declaration or your tenancy lease. Many Toronto condos ban all STRs and most leases prohibit subletting without consent. Check both before you register.
You must physically post both inside the rental space. This is a small thing the City's annual inspector will look for and a $100K-ceiling fine if missing.
Airbnb / VRBO are required to remove ads without a valid registration number within 24 hours of the City asking. Display it prominently on the main page of every listing AND on every receipt or invoice you issue.
Income Potential with Partial-Unit
Let's talk numbers. Here's what partial-unit hosting can look like in Toronto:
Example: Spare Room in Leslieville
That's from a single room. Hosts with 2-3 spare rooms can double or triple this figure. And remember: entire-unit hosts are capped at 180 nights regardless of demand.
The Comparison That Matters
With entire-unit registration at $200/night for 180 nights, you'd earn $36,000. Sounds better than $21,675, right?
But here's the thing: that entire-unit host can't earn anything from STR for the remaining 185 nights. Meanwhile, the partial-unit host keeps earning, and can also rent during high-demand periods like TIFF, Pride, and Caribana when rates spike.
Real Strategy: Multiple Rooms + Events
- 2 spare rooms at $85/night each = $170/night capacity
- Event weekends (TIFF, Pride, etc.) command $150-200/room
- Year-round operation with no arbitrary cutoff
- Annual potential: $35,000-50,000+ depending on location and rooms
Frequently Asked Questions
What is partial-unit registration in Toronto?
Partial-unit registration is a short-term rental registration type where you rent out part of your principal residence (a spare bedroom, basement room, etc.) while you remain living in the property. Unlike entire-unit registration which has a 180-night annual cap, partial-unit registration has no night limit. You can legally rent up to three bedrooms in your home for 365 nights per year.
How many bedrooms can I rent under partial-unit registration?
You can rent up to three bedrooms in your principal residence as a partial-unit rental, and you must always advertise at least one fewer bedroom than your home actually has, so you have a place to sleep. So if you have a 2-bedroom condo, you can rent one bedroom. If you have a 3-bedroom house, you can rent two. If you have a 4-bedroom house, you can rent up to three. The cap is the lesser of three bedrooms or one fewer than total.
Do I have to be home during every guest stay?
No. The bylaw does not say you must be physically in town or on the premises during every booking. The test is principal residence under section 547-4.2: the unit must be where you 'ordinarily reside' (driver's licence, taxes, bills, voter registration). A weekend trip or a 2-week vacation while a guest is in your spare bedroom does not break that test. What does break it: long absences, no personal belongings in the unit, addresses on official documents pointing elsewhere, or renting the WHOLE place while you're away (which would be entire-unit operation regardless of your registration).
Can I switch from entire-unit to partial-unit registration?
Not mid-term. Your registration is locked to one type for the full one-year registration period. You can switch at renewal, but if you switch from partial-unit to entire-unit, the 180-night cap applies to ALL your STR activity that calendar year, including nights already rented as partial-unit. Example from the City: if you rented 150 nights as partial earlier in the year, you only get 30 more nights as entire-unit before hitting the 180 cap. The cap resets January 1.
What counts as 'part of a dwelling unit' for partial-unit rentals?
A bedroom or bedrooms within your dwelling unit, while you continue to live there. The City's guidance describes partial-unit as renting 'rooms in your home' rather than the entire unit. A self-contained secondary suite, laneway suite, or garden suite is its own dwelling unit and is treated as entire-unit if rented out, even if it's on your property. However, you CAN host an STR in a secondary suite or laneway suite if THAT suite is your principal residence and meets zoning, building code, and fire code requirements.
Can I rent multiple rooms to different guests with partial-unit registration?
Yes, up to three bedrooms total, and never your last remaining bedroom. The 'one fewer than total bedrooms' rule is the City's hard limit. So in a 4-bedroom Annex Victorian you could rent 3 rooms simultaneously to different guests. In a 2-bedroom Parkdale condo, only 1 room. Check the City's operator page for the exact wording.
Is the 8.5% MAT tax required for partial-unit rentals?
Yes. The Municipal Accommodation Tax applies to all stays under 28 nights regardless of whether you're entire-unit or partial-unit. The current rate is 8.5%, in effect from June 1, 2025 to July 31, 2026, after which it reverts to 6%. Airbnb and VRBO collect and remit it automatically on bookings made through their platforms, but you must still file a tax report each reporting period. Direct bookings outside those platforms are your responsibility to collect and remit.
What happens if I advertise my partial-unit as an entire-unit rental?
That's a bylaw violation under section 547-4.1.1.C. The City cross-references your registration type against your platform listings. Fines go up to $100,000 per offence plus $10,000 per day the offence continues, plus a special fine to wipe out any economic gain, plus registration revocation with a 12-month ban on reapplying.
Do I still need to prove principal residence for partial-unit registration?
Yes, exactly the same as entire-unit. You provide government-issued ID at registration and may be asked to submit at least two additional documents on request (utility bill, CRA Notice of Assessment, lease, vehicle registration, insurance). The principal residence rule is non-negotiable. The City will also conduct annual inspections of registered short-term rentals.
Can I do partial-unit rentals in my condo?
From the City's perspective yes, but your condo corporation's declaration and rules override the City. Many Toronto condos prohibit all STRs in their declarations. Some carve out an exception for home-sharing (partial-unit) while banning entire-unit. Read your declaration and condo rules in full before registering. A condo STR ban exposes you to action by your condo board even if the City has approved your registration.
Can I host an STR if I'm a tenant, not the owner?
From the City's standpoint, yes. Toronto specifically does not collect information to verify whether a renter has obtained the consent of their landlord before issuing the registration. But your lease almost certainly says something about subletting and short-term rentals. Doing it without your landlord's written consent puts you at risk of eviction. Ask your landlord first.
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change frequently. Always verify current rules directly with your local municipality before making hosting decisions.
Official City of Toronto Resources
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