Montréal real estate market: everything you need to know about Airbnb short-term rentals

Accueil » Blog » Montréal real estate market: everything you need to know about Airbnb short-term rentals

June 5, 2025

Montréal real estate market: everything you need to know about Airbnb short-term rentals

Main information:

Since June 2025, Montreal has tightened the rules governing short-term rentals to better control abuse.
Only certain tourist areas still allow this type of rental, with compulsory CITQ registration.
Outside these zones, rental is prohibited in buildings with 6 or more units, unless the owner is a resident.
An interactive map will be put online to clearly identify areas where rental is permitted or prohibited.
These new rules could influence investor decisions and stabilize the Montreal rental market.

Short-term rentals in Montreal-often associated with platforms like Airbnb-are undergoing a major regulatory shift in 2025. Faced with a surge in illegal housing and growing pressure on the rental market, the city has decided to tighten up its regulations considerably.

From now on, offering short-term rental accommodation in Montreal will require more than just a CITQ (Corporation de l’industrie touristique du Québec) number: you’ll also need to obtain a specific municipal permit. And that’s not all: platforms will also have to remove non-compliant ads, or face heavy fines.

In this article, we explain in detail the new rules, their concrete impact on landlords and tenants, the authorized zones, and the strategies to adopt to continue renting legally.

Time needed: 5 minutes

Why Montreal is tightening short-term rental rules
What new rules will apply in 2025?
Where else can you rent short term in Montreal?
What does this mean for homeowners?
What impact will this have on the Montreal real estate market?

Why Montreal is tightening short-term rental rules

For several years now, the City of Montreal has been confronted with an explosion in short-term rentals, often illegal, which contribute to reducing the supply of long-term housing for residents. In 2024, the metropolis counted over 14,000 accommodations offered on platforms like Airbnb, while only 2,000 of them had a valid registration number issued by the CITQ.

This proliferation of non-compliant tourist accommodation has a direct impact on the city’s housing crisis. Many homes are being withdrawn from the traditional rental market to be put to more lucrative short-term use, exacerbating the shortage and rising rents in many neighborhoods.

Faced with this problem, the City of Montreal has decided to tighten the noose. The aim is to regain control over residential use of the territory and better supervise rental platforms, by making them responsible for verifying the legality of ads published on their sites.

Montreal mayor Valérie Plante stressed that this shift was necessary to protect the rental stock and ensure better cohabitation between tourists and residents. The message is clear: illegal tourist accommodation will no longer be tolerated.

What new Airbnb rules will apply in 2025?

As of May 1, 2025, new rules governing short-term rentals are officially in effect in Montreal. These measures are designed to tighten controls and significantly reduce the number of illegal rentals.

Here are the main changes:

Platform accountability: Sites like Airbnb and Vrbo must now check the validity of the registration number (CITQ) provided by hosts. If they fail to do so, they may be held responsible for non-compliant ads.
Prohibition in buildings with six or more units: Short-term rentals are now prohibited in buildings with six or more units, unless the building is located in an authorized zone or the unit is owner-occupied.
Greater control over authorized areas: Boroughs now have more power to delimit areas where short-term rentals are permitted, including tourist areas.
Increased fines: Fines for non-compliance with regulations have been increased. An offending owner can be fined up to $10,000, and platforms can be fined up to $100,000.
Collaboration with Revenu Québec: The city has strengthened its partnership with Revenu Québec to identify illegal ads more effectively and carry out targeted checks.

These new measures mark a turning point in the management of short-term rentals in Montreal, focusing on co-responsibility between hosts and platforms, as well as stricter enforcement of the legal framework. They aim to restore the balance between tourism development and the right to housing for Montrealers.

Where else can you rent short term in Montreal?

Despite stricter rules, short-term rentals are still permitted in certain zones of the City of Montreal. Despite the stricter rules, short-term rentals are still permitted in certain areas of Montreal . These zones are mainly located in tourist areas such as Ville-Marie, Plateau-Mont-Royal and Rosemont-La Petite-Patrie. However, the conditions for carrying out this activity are now more strictly defined.

To continue renting legally, owners must :

obtain a valid registration certificate from CITQ (Corporation de l’industrie touristique du Québec).
comply with municipal bylaws, especially zoning regulations.
If they are in a condominium, obtain authorization from their syndicate.

Outside these designated areas, short-term rentals are prohibited in buildings with six or more units, unless the owner occupies the unit himself. This rule considerably reduces rental opportunities in strictly residential neighborhoods.

To accompany these new regulations, the city is committed to publishing an interactive map so that owners can easily check whether their property is located in a zone authorized for tourist rentals.

In short: to continue renting on a short-term basis in Montreal, you need to be in a permitted zone, registered with the CITQ, in compliance with urban planning bylaws, and – where applicable – authorized by the condominium corporation.

Don’t miss any market news with our articles:

What does this mean for homeowners?

The tightening of the rules on short-term rentals in Montreal is having a significant impact on many owners, especially those who have been using this strategy to make a profit on their property.

End of profitability for certain units: New restrictions prohibit short-term rentals in most buildings with six or more units, unless the owner lives there. This makes it virtually impossible to make a profit on certain condos or apartments held as investments. For many owners, this means the end of an important source of income, especially in residential areas outside tourist zones.
Resale or forced conversion: Some owners may be forced to sell their property or convert it into a long-term rental. This transition is not always easy, especially if the property has been optimized for tourist rentals (furnished, all-inclusive, automated management, etc.).
Increased risk of sanctions: With closer collaboration between the City and Revenu Québec, controls will be more frequent and sanctions more severe. In the event of a violation, fines can range from $5,000 to $50,000, a strong deterrent to owners tempted to continue illegally.
Increased administrative complexity: Even for homeowners in good standing, the procedure becomes more cumbersome: CITQ certificate, zoning compliance, condominium authorization, interactive map to consult… These steps require time, organization and sometimes the help of professionals.
Impact on the value of certain properties: In some cases, the short-term rental ban could affect the market value of a property, especially if it had been purchased specifically for its Airbnb profitability. This could also influence purchasing decisions for future investors.

What impact will this have on the Montreal real estate market?

The tightening of short-term rental rules in Montreal could have several direct and indirect effects on the real estate market, for both buyers and tenants.

1. A return to the traditional rental market

The partial ban on tourist rentals will force many owners to reintegrate their units into the long-term rental market. This reintegration could relieve some of the pressure on rental supply, particularly in neighborhoods hard hit by the shortage of affordable housing.

2. Less attractive to certain investors

With increased constraints and reduced profitability, the Airbnb model is becoming less attractive to investors. We can therefore expect to see a drop in demand for small units or condos that were once popular for short-term rentals. This could slow price rises in certain segments.

3. Potential price stabilization in certain sectors

In neighborhoods where speculation on short-term rentals was high, such as Ville-Marie or the Plateau, we could see a slowdown in real estate appreciation. Fewer investor buyers means less upward pressure on prices.

4. Greater clarity for home buyers

The stricter framework clarifies the uses permitted in each zone. For a buyer-occupier, this means fewer potential nuisances due to illegal tourist rentals, a factor that could make some buildings more attractive.

5. Repositioning the market towards long-term projects

Finally, this change in regulations could encourage developers and investors to focus on longer-term projects: primary residences, stable rental properties, or conversions to social or affordable housing – in response to the current housing crisis.

“We’re already starting to see a shift by some investors towards long-term rental or resale. The tightening of the rules is reshuffling the deck, but in the long run, it could clean up the market and breathe new life into Montreal buyers and tenants.”

Kyle Shapcott

Conclusion

With these new rules, Montreal is sending a clear message: regulating short-term rentals is becoming a priority to protect the residential rental stock, ease tensions in neighborhoods and ensure a better quality of life for permanent residents.

For owners, this means rethinking their investment strategies and adapting to a much more rigid framework. For buyers and renters, it’s the hope of a slightly more balanced real estate market.

The map of possibilities is changing – now it’s up to you to find your way around… legally.

If you have any questions about the real estate market, contact our team of real estate brokers in Montreal.

Valérie Lacasse

valerie@equipels.com

Linkedin | Instagram

Valérie has been a real estate broker for over 10 years. Passionate about the industry and Montreal, she is one of Montreal’s most influential brokers, guaranteeing expertise and comprehensive support to her clients.

Discover our news, analyzes and advice at the heart of the real estate market on our blog: