As of May 2026, Markham strictly prohibits short-term rentals of an entire home for less than 30 days. However, you may rent up to two bedrooms in your principal residence for periods of 30 days or more, and a new licensing framework is proposed for July 2026.
Hosting guests through platforms like Airbnb can be a lucrative way to earn extra income in York Region. However, the City of Markham has historically maintained some of the strictest zoning bylaws in Ontario regarding transient accommodations. 🚫 Many property owners are unaware that operating a weekend party house or a nightly rental in a residential neighbourhood is generally an offence under current municipal rules.
Because these regulations are heavily enforced, compliance is essential to avoid severe financial penalties. If you are unsure whether your property qualifies, we highly recommend consulting a local Markham real estate lawyer from our directory. 📋 Below, we explain the current landscape and how to legally rent out space in your home.
Step-by-Step Process to Comply in Markham, Ontario
Whether your property is located in Cornell, Unionville, or Milliken, the municipal zoning bylaws apply uniformly across the city. 📍 The City of Markham utilizes proactive bylaw enforcement, meaning neighbours frequently report illegal short-term accommodations.
Step 1: Understand the 30-Day Rule
Currently, the city defines short-term accommodation as any rental lasting less than 30 consecutive days. 📅 By default, this is prohibited in all residential zones. To remain compliant, you must ensure that any rental agreement, lease, or booking strictly covers a period of 30 days or longer. These longer stays are governed by the Ontario Residential Tenancies Act.
Step 2: Limit Rentals to Two Bedrooms
If you plan to rent out individual rooms rather than the entire house, Markham by-laws restrict you to renting a maximum of two bedrooms within your property. 👥 Furthermore, these individual lodging rooms cannot contain separate cooking facilities for the exclusive use of the occupants. The property must remain your principal residence.
Step 3: Prepare for the Proposed 2026 Licensing System
The regulatory landscape is evolving. As of spring 2026, Markham city staff have recommended a new Short-Term Rental Business Licensing By-law, proposed to take effect on July 1, 2026. 📣 If approved, this new framework will require hosts to formally register their principal residence, pay an annual licensing fee, and collect a Municipal Accommodation Tax (MAT). Property owners should monitor city council updates to apply as soon as the portal opens.
How Much Does it Cost in Markham?
Operating an illegal short-term rental carries significant financial risks. If the new licensing system takes effect, there will also be legal operational costs. 💵 Here is what you need to know about the costs:
| Expense Type | Estimated Cost (CAD) |
|---|---|
| Bylaw Infraction Fines | $500 to $100,000+ (Corporate fines can be higher) |
| Proposed Annual License Fee | Expected to be comparable to Toronto (approx. $50 – $150) |
| Municipal Accommodation Tax | Typically 4% to 6% of the rental revenue |
| Legal Consultation | $300 to $500 per hour for a local lawyer |
How Long Does the Process Take?
Currently, transitioning a property into a legal 30-day+ rental is immediate, provided you sign a standard Ontario lease agreement. ⏳ If you are waiting for the new short-term rental licensing program expected in July 2026, the application processing time is anticipated to take 2 to 4 weeks once the municipal registry officially launches.
Frequently Asked Questions (FAQ)
Can I rent my entire Markham house on Airbnb for the weekend?
No. As of May 2026, renting an entire residential home for a few days or a weekend is strictly prohibited under Markham zoning by-laws. Rentals must be for a minimum of 30 consecutive days.
Does Markham allow secondary suites or basement apartments?
Yes, Markham allows registered secondary suites (basement apartments), but they must be registered with the city, meet fire and building codes, and are intended for long-term tenancy, not nightly short-term rentals.
What happens if a neighbour reports my Airbnb?
Municipal bylaw enforcement officers will investigate the property. If found in violation of the zoning rules, you may be issued an order to comply and face substantial fines for operating an illegal commercial accommodation.
Will I have to pay taxes on my rental income?
Yes. All rental income must be reported to the Canada Revenue Agency (CRA). Additionally, under the proposed new rules, operators will be required to collect and remit a Municipal Accommodation Tax directly to the city.
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