New Short-Term Rental Restrictions in the Montreal Real Estate Market

The City of Montreal has introduced stricter regulations on short-term rentals, a move expected to significantly impact the Montreal Real Estate Market. Under the new rules, homeowners may rent out their primary residence on platforms such as Airbnb only between June 10 and September 10, with limited exceptions.

This decision aims to address housing shortages and return more residential units to the long-term rental sector.

Impact on the Montreal Real Estate Market

Mayor Valérie Plante stated that these regulations could bring approximately 2,000 housing units back into the long-term rental supply. By limiting illegal short-term rentals, the city hopes to stabilize rental prices and ease pressure within the Montreal Real Estate Market.

Property owners will now bear the responsibility of proving their rental is legal. Inspectors may issue fines of $1,000 per day for non-compliant listings, increasing to $2,000 per day for repeat violations. This strict enforcement signals a serious shift in housing policy.

Stricter Enforcement and the Montreal Real Estate Market

Following a tragic 2023 fire in an old Montreal building that contained illegal short-term rental units, the Quebec government strengthened oversight laws. All rental listings must now include a valid provincial certification number and expiration date. Advertising without proper documentation is illegal.

Starting in March, homeowners who wish to rent during the permitted period must obtain a $300 permit. However, properties already holding valid short-term rental licenses are exempt from the new seasonal restrictions.

While Airbnb representatives argue that these measures could harm tourism and local businesses, city officials maintain that protecting housing supply remains essential for the long-term stability of the Montreal Real Estate Market.