If you are considering purchasing a Markham condo or townhome with the intention of running it as an Airbnb or short-term rental, there is a critical piece of information you need to know before you sign anything: short-term rental in Markham is effectively banned. Not discouraged, not restricted, not regulated — banned as a default under the city’s current zoning framework, with no permit or licensing pathway available for most properties.

Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, raise this issue clearly and early in every investor conversation because the financial model many condo investors are using — purchase, furnish, list on Airbnb — does not legally work in Markham. Here is the complete picture.

What Markham’s Zoning Bylaw Actually Says

Markham’s Comprehensive Zoning By-law 2024-19, approved by the Ontario Land Tribunal on September 19, 2024, does not permit Short Term Accommodations “as of right” in any zone. The use may only be considered on a site-specific basis through a zoning by-law amendment or minor variance application requiring Council approval — which is not guaranteed. Unlike Toronto, Mississauga, or Vaughan, which created licensing frameworks for STRs under certain conditions, Markham chose not to create any standard pathway for legal short-term rental operations.

The Double Layer — Markham Zoning Plus Condo Corporation Rules

For condo buyers in Downtown Markham — Gallery Towers, UnionCity, Pangea Condos, Circa I and II — the Airbnb prohibition exists at two independent levels. First, Markham’s zoning bylaw prohibits short-term accommodations as described. Second, virtually all Markham condo corporation declarations include additional restrictions on short-term rental use — many explicitly prohibiting rentals of less than six months or one year. These declaration restrictions are independent of the municipal bylaw and enforced by the condo corporation directly through fines, legal action, and application to the Condo Authority Tribunal.

An investor who purchases a Gallery Towers unit and attempts to run it as a short-term rental faces enforcement action from the City of Markham under the zoning bylaw and from the condo corporation under the declaration — simultaneously.

The Federal Tax Consequence

A third layer: the 2024 federal government rule denying deductions on non-compliant short-term rentals. Since you’re operating a non-compliant STR, you cannot deduct mortgage interest, condo fees, and other expenses against rental income, materially reducing after-tax return. An investor running an illegal Markham Airbnb faces: zoning bylaw enforcement and fines from the City; condo corporation enforcement and fines; and denial of rental expense deductions from the CRA. The combined financial exposure of this triple enforcement framework makes illegal short-term rental in Markham a genuinely dangerous investment strategy.

What This Means Before You Buy

The due diligence checklist for any Markham condo or townhome investor targeting rental income must include: a review of the city’s zoning for the specific address to confirm no STR use is permitted; a review of the condo corporation’s declaration and rules for any restrictions on rental term length; and a review of the management rules for the specific building to identify additional restrictions. This due diligence must happen before you remove conditions on your purchase — not after.

See the companion blog — The Mid-Term Rental Strategy — for the legal alternative that many Markham condo investors are using to generate above-market rental income while staying on the right side of the rules. Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, coordinate status certificate review for every condo purchase, including specific review of rental restriction clauses as a standard component.