Starting next Monday, penalties for violating the City of Mississauga’s Short-Term Rental Bylaw will increase to a minimum of $500 and a maximum of $1,000 “to better encourage compliance,” the city said.
Often booked through platforms such as Airbnb, Vrbo and Booking.com, a short-term rental is a home or part of a home that’s rented out for 30 consecutive days or less. Such rentals provide guests with an option for a more local or affordable stay while also giving residents an opportunity to generate additional income, city officials say.
Under the city’s bylaw, residents can only operate a short-term rental from their principal residence — the home where they live for most of the year — and they must have a licence from the city to do so.
In response to a large measure of non-compliance among short-term rental operators, the city is using $4.75 million from the federal government’s Short-Term Rental Enforcement Fund to enhance its enforcement program in an effort to “decrease the number of unlicensed short-term rentals in the city and better regulate the sector,” city officials said in a news release.
They added the intent of that government fund is to help municipalities such as Mississauga limit short-term rental units that take away from the long-term rental housing market.
Mayor Carolyn Parrish said short-term rentals play an important role in supporting Mississauga’s tourism industry, offering visitors a “unique and local way” to experience the city.
“At the same time,” she continued, “we must prioritize the availability of long-term housing. Homes should first and foremost be places for people to live. When homes are for short accommodations, it reduces the number of available spaces for much-needed long-term housing. With support from the federal government, we’re taking action to ensure short-term rentals are operated according to our bylaws and don’t come at a cost to long-term housing.”
Raj Sheth, the city’s commissioner of community services, said the Mississauga bylaw “emphasizes responsible hosting and supporting neighbourhood stability.”
He noted the city has listened to the community’s concerns in putting into action stronger enforcement of the bylaw.
Mississauga officials noted that as of this past April, there were an estimated 1,855 short-term rentals advertised in Mississauga, with 510 of those licensed by the city. Furthermore, 1,554 of those rentals qualified as a short-term rental, city staff determined.
Also, between December 2021 and April 2025, city staff responded to more than 2,000 service requests, resulting in 1,315 Notices of Contravention and 404 penalties for violations of the bylaw alone, officials said.
“Many of these instances of non-compliance include residents operating a short-term rental without a licence, operating more than one rental or operating from a home where they do not live for most of the year,” the city said.