New Restrictions Shake Up Montreal's Rental Market
Montreal is taking a firm stand against the proliferation of short-term rentals with a new bylaw that significantly limits their operation. City council passed the regulation in March, restricting owners from renting their principal residences for periods of 31 days or less to just the peak tourist season, spanning June 10 to Sept. 10. Outside these dates, most short-term rentals in main residences across the metropolis will be banned, a move aimed at addressing the city's acute housing shortage.
The policy also mandates a $300 permit from the city for those wishing to rent during the allowed summer window, alongside existing requirements to register with the province. Mayor Valérie Plante has emphasized the city's commitment to supporting tenants, noting that 65 percent of Montrealers are renters. 'We really want to support Montrealers that are tenants,' she stated during a press conference on Jan. 30.
Commercial Rentals and Enforcement Challenges
While the ban targets primary residences for most of the year, full-time short-term rental units operated by commercial enterprises are still permitted in designated commercial zones, such as specific areas of Sainte-Catherine and Saint-Denis streets. These tourist residences can operate year-round, but their scope is tightly controlled to prevent further strain on residential housing stock.
To enforce these new rules, Montreal is bolstering its inspection team, increasing the number of inspectors from three to seven. Violators face steep penalties, with fines set at $1,000 per night for individuals and $2,000 per night for businesses found breaking the rules. This crackdown comes as part of a broader effort to curb illegal listings that have long plagued the city, exacerbating the housing crunch.
Industry Pushback and Housing Crisis Context
Despite the city's determination, the new regulations have faced significant pushback from industry stakeholders who argue that short-term rentals are vital for tourism and local economies. Many hosts and platform operators worry about the financial impact of such stringent restrictions, especially for those who rely on rental income outside the summer months. However, city officials remain steadfast, pointing to the urgent need to prioritize affordable housing over temporary accommodations.
The housing crisis in Canada, particularly in urban centers like Montreal, has intensified pressure on policymakers to act. With rental vacancies at historic lows and rent growth accelerating, as highlighted in recent data shared on social media platforms like X, the debate over short-term rentals' role in reducing available long-term housing stock continues. Montreal's latest measures are seen as a critical step in striking a balance between tourism and tenant needs, though the long-term impact remains to be seen.