Canada Is “Cracking Down” on Airbnb & Short-Term Rentals

The Government of Canada is “cracking down” on short-term rentals like Airbnb and Vrbo.

In a release sent on Dec. 3, 2024, the Canadian Department of Finance announced the launch of a $50 million Short-Term Rental Enforcement Fund. The new program provides funding to help municipalities increase enforcement and compliance activities for short-term rentals.

“Through the Short-Term Rental Enforcement Fund, we will work with communities across the country to make sure that short-term rentals don’t contribute to Canada’s housing crisis. This is a significant step in our work to ensure that everyone has a safe and affordable place to call home,” said The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities.

There are estimated to be 235,000 units in Canada being used for short-term rentals. The aim of the fund is to bring non-compliant short-term units back into the long-term housing market.

Municipalities can apply for the fund to cover costs such as hiring enforcement staff, managing complaints, and conducting inspections. Applications can be submitted between Dec. 16, 2024, and Jan. 24, 2025.

“There are more than 200,000 short term rentals across the country — like Airbnbs or Vrbos — that could be turned into housing,” Prime Minister Justin Trudeau said on social media platform X. “So we’re giving cities more resources to crack down on those rentals and unlock more homes for Canadians.”

The STREF was first introduced in 2023 as a three-year commitment to launch in 2024.

For more information on STREF, visit the Government of Canada information page.