Are short-term rentals and rooming houses allowed in Markham?Markham has no short-term rental licence. Short-term rentals of less than about four weeks are not permitted as of right in residential zones, and the City directs operators to stop when it finds them. A 4% Municipal Accommodation Tax applies to stays of 29 nights or fewer. Rooming houses, where three or more rooms are rented separately, are a separate use under the zoning by-law. Legal options include long-term leases and registered additional units.
Rising costs and new student demand have many owners asking whether they can rent rooms or list a basement on Airbnb. In Markham, the answer depends on how long guests stay and how the space is set up.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, helps investors check the rules before they buy, so the rental plan matches what the City allows.
Short-term rentals
- Markham has not created a short-term rental licence or registry.
- Council decided in 2018 not to allow short-term rentals in residential zones, and the restriction continues under Comprehensive Zoning By-law 2024-19.
- When the City finds a listing, owners are directed to remove it and stop.
- Many condo corporations also ban short stays in their declarations or rules.
The 4% accommodation tax
Markham’s Municipal Accommodation Tax By-law (2018-116) charges 4% on accommodation of 29 consecutive nights or fewer. Fines under that by-law range from $300 to $50,000 for a first conviction. The tax does not make a short-term rental legal where zoning does not allow it.
Rooming houses vs. legal units
| Set-up | How Markham’s zoning treats it |
|---|---|
| Rooming house, small scale | Three to five lodging rooms rented separately |
| Rooming house, large scale | More than five lodging rooms |
| Additional residential unit | A self-contained unit with its own kitchen and bathroom |
A rooming house is not a dwelling unit under the zoning by-law, and it is only permitted where a zone allows it. Renting several rooms in a basement to separate tenants can turn a home into a rooming house. A legal suite needs permits and must meet Ontario Fire Code and Building Code requirements.
Buying with rental income in mind?
Michael John Lau can help you check zoning and suite potential before you make an offer.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Enforcement and risk
Zoning offences under the Planning Act can bring fines of up to $25,000 for an individual on a first conviction, and higher amounts for corporations. Unapproved set-ups can also affect insurance coverage and resale.
Legal ways to earn rental income
- A long-term lease of the whole home or a legal suite
- Furnished rentals of 30 days or more, where permitted
- Renting a room in your own home within zoning limits
Ultimately, the decision is yours. The goal is to make sure you have all the information before you buy for rental income.
In Markham, the legal rental plan is the one that lasts. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Is Airbnb legal in Markham?
Short-term rentals are not permitted as of right in residential zones, and there is no licence.
Does Markham charge an accommodation tax?
Yes, 4% on stays of 29 nights or fewer.
What is a rooming house in Markham?
A building with three or more lodging rooms rented separately, defined separately from a dwelling unit.
Can I rent rooms in my basement to students?
Renting several rooms separately can create a rooming house. Check zoning first.
What are the fines for zoning violations?
Up to $25,000 for an individual on a first conviction under the Planning Act.
Can I rent furnished for 30 days or more?
Longer stays are generally treated as residential tenancies. Confirm with the City.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. The 4% tax and its fines are from City of Markham By-law 2018-116. Rooming house definitions are from Comprehensive Zoning By-law 2024-19. The 2018 decision and enforcement approach are from industry sources (2026). Planning Act fine limits are from secondary sources. Confirm current rules with the City of Markham. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
