Toronto’s short-term rental regulations are no longer in limbo after the Local Planning Appeal Tribunal (LPAT) dismissed operators’ appeals on Monday.

The decision allows the city to carry out regulations, which were approved by council more than a year ago, but were postponed due to the appeal. The rules restrict the rental to an owner or long-term tenant’s primary residence for up to 180 days.

Mayor John Tory applauded the decision as a “step in the right direction” towards more liveable neighbourhoods.

“When we approved these regulations in 2017, we strived to strike a balance between letting people earn some extra income through Airbnb and others, but we also wanted to ensure that this did not have the effect of withdrawing potential units from the rental market,” he said. “I have always believed our policy achieves the right balance which in this case falls more on the side of availability of affordable rental housing and the maintenance of reasonable peace and quiet in Toronto neighbourhoods and buildings.”

Now that the appeals process is complete, the registration and licensing by-law will come into effect, followed by a four per cent Municipal Accommodation Tax applied to hosts and short-term rental companies, which have entered into agreement with the city. Updates on the implementation of these steps are expected to be announced before the end of this year.