Short-Term Rental Agreements in Ontario: A Complete Guide for Hosts
Last updated: July 2025
As Ontario’s short-term rental market continues to expand, understanding the legal framework around short-term rental agreements becomes increasingly important for hosts who want to protect their property and run a successful rental business. Whether you’re listing your home on Airbnb, Vrbo, or independently managing bookings, having a proper short-term rental agreement in Ontario is a vital step in ensuring a smooth and professional experience for both you and your guests.
This guide explains what your contract should include, outlines relevant laws and best practices, and provides access to a free downloadable Ontario short-term rental agreement template to help you get started with confidence.
Don’t see the form to download our Ontario Short-Term Rental Agreement Template? Click here.
What is a short-term rental agreement?
A short-term rental agreement is a legally binding contract between a property owner (the host) and a temporary guest. It outlines the expectations, rights, and responsibilities of both parties during the rental period.
Typically, an Ontario short-term rental contract includes:
- Payment terms and conditions
- House rules and policies
- Guest limits and occupancy terms
- Check-in and check-out procedures
- Cancellation policies
- Property damage responsibilities
- Security deposit information
Using a detailed and well-drafted Ontario short-term rental agreement form helps prevent misunderstandings, protects your interests, and ensures compliance with provincial and municipal regulations.
Is a short-term rental agreement required in Ontario?
According to the Residential Tenancies Act, short-term rentals that last fewer than 28 consecutive days are exempt from many of the requirements that apply to long-term rentals. That means you’re not legally required to have a written agreement. However, not having an Ontario short-term rental agreement in place leaves you vulnerable to disputes.
A clear and concise Ontario short-term rental contract provides documentation that can protect you in case of property damage, nonpayment, or other issues. For legal and practical reasons, it is strongly recommended to use a standardized Ontario short-term rental agreement form for every guest stay.
What is considered a short-term rental in Ontario?
In Ontario, a short-term rental is defined as the rental of a residence—or part of a residence—for fewer than 28 consecutive days, in exchange for payment. This applies to vacation rentals, homestays, bed-and-breakfasts, and room rentals. Hotels, motels, and student residences are not classified under this category.
Key aspects of short-term rentals in Ontario to be aware of
Legality
Ontario hosts should carry short-term rental insurance to protect against damage, accidents, or injury. Include a liability clause in your Ontario short-term rental contract to reduce your personal risk.
Principal residence requirements
In many Ontario municipalities, like Toronto and Mississauga, you can only operate a short-term rental in your principal residence—meaning the place where you live most of the time. It’s important that your Ontario short-term rental agreement reflects this requirement when applicable.
Municipal regulations
Local bylaws govern how and where short-term rentals can operate in Ontario. Always check your municipality’s rules:
- Toronto: Rentals must be in the host’s principal residence. Registration is required.
- Ottawa: Specific zoning bylaws and registration steps must be followed.
- Niagara Falls: Hosts need permits and must comply with licensing standards.
Tenant rights
While the Residential Tenancies Act doesn’t apply in Ontario, guests still have rights under:
- Ontario Human Rights Code
- Consumer Protection Act
- Municipal bylaws
Consequences of noncompliance
Failing to follow short-term rental regulations in Ontario can result in:
- Monetary fines
- License revocation
- Property use restrictions
Essential clauses to include in your short-term rental agreement
When drafting or customizing your Ontario short-term rental agreement, ensure it includes these key components:
Identification of parties
Include full names and contact details of both the host and the guest.
Property details
Clearly state the rental property’s address, number of bedrooms, and amenities included.
Rental period
Define check-in and check-out times, and specify the total duration of stay.
Payment terms
Include the nightly rate, deposit amount, additional fees (e.g., cleaning or pet fees), and the payment method.
Security deposit
State the deposit amount and refund policy. Clarify how damages will be assessed.
House rules
Outline rules related to smoking, pets, noise, and maximum occupancy.
Cancellation policy
Specify how cancellations are handled, under what conditions refunds are issued, and how much notice is required.
Liability and insurance
Detail the responsibilities in the event of injury or damage, and clarify what insurance the host and guest must carry.
Access and security
Explain how guests will receive keys or access codes and what to do upon checkout.
How do I write a short-term rental agreement?
Here’s a step-by-step process to draft a professional short-term rental agreement that can be reused and customized:
- Use a template: Start with a reliable template, like the one linked at the end of this article, to ensure you cover all of the necessary clauses.
- Customize for your property: Tailor the form to your specific property, including the house rules, fees, check-in and check-out procedures, and your expectations as a host.
- Consult legal advice: Consider consulting with a legal professional to ensure your Ontario short-term rental agreement is in compliance with local laws and regulations.
- Keep it clear and concise: Use straightforward language to avoid misunderstandings. Your guests should be able to understand every term without legal expertise.
- Review regularly: Update the agreement as needed to reflect changes in local laws, bylaws or your own policies.
Why use a short-term rental agreement form in Ontario?
Using a standardized Ontario short-term rental agreement form helps streamline your hosting process and builds trust with guests. It shows professionalism and can be a valuable reference point if issues arise. Many insurance companies may also require proof of an agreement before processing a claim.
Ready to start hosting? Protect your property and business with our professionally crafted Ontario Short-Term Rental Agreement Template. Download our customizable template and start hosting with confidence!
Don’t see the form to download our Ontario Short-Term Rental Agreement Template? Click here.