If you are looking to start an Airbnb business in Canada, knowing the Airbnb rules in your preferred city is the first step. It’s also important to consider the occupancy rates in Canada in order to have successful investment & long-term profitability!
In this article, we featured Airbnb regulations in Victoria along with short-term let policies, rental properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Victoria.
Is Airbnb legal in Victoria?
Don’t worry, Airbnb is legal in Victoria! This city is home to numerous tech companies and offers many tourism job opportunities for locals. Victoria also accommodates millions of visitors annually and it directly affects the rental demand.
Here is a little proof! As of July 2022, there are 16,173 nights available in Victoria from Airbnb alone. Co-Hosts manages 33 listings, while Victoria Prime Services and Angela operate 28 and 24 respectively.
How much can I make by running an Airbnb in Victoria?
Currently, there are 768 Airbnb listings in Victoria, with 40% of entire houses earning up to C$4,380 a month. The Average Occupancy Rate in Victoria is 86% and the average daily rate is C$155. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Victoria can make up to C$78,720 each year. Check out our Short-term Rental Calculator to know how much profit you can make with Airbnb!
Short-term Rental Policy in Victoria
- You are NOT eligible if the short-term rental unit is a self-contained dwelling suite, except for when a renter rents it out on occasion with the owner’s permission.
- It is required to have a Short-Term Rental Business Licence. The price for a principal residence is $150, while all other types of short-term rentals are $1,500.
- If you are denied a short-term rental business licence, you may request that Council reconsider your business licence application. You will have an opportunity to submit your reasons for reconsideration and Council may decide to either uphold or deny your appeal for a business licence.
- You are eligible if your short-term rental unit is your principal residence:
- The whole home on occasion (for example, when you are on vacation);
- Up to two bedrooms in your home with a shared kitchen and living spaces.
- You are eligible if you own a legally non-conforming unit where transient accommodation was a permitted use. Changes to the Zoning Bylaw now prohibit short-term rentals in residential units where “transient accommodation” was a permitted use in zoning. However, properties may be considered legally non-conforming under this use if they have been operating a short-term rental in a transient accommodation zone prior to the zoning changes, and comply with strata regulations and operating requirements.
Rental Demand in Victoria
There are many hosts who are doing rental arbitrage in Canada as it does not require you to own a property. Based on a recent Victoria rent report, it has the highest annual rental growth of 27% next to Hamilton.
Source: Victoria BC Rental Demand
Property Investment in Victoria
If you are looking to start an Airbnb business in Canada, particularly in Victoria, you have to consider which areas are the most profitable. Whether it is located in the city centre or in the countryside, knowing your estimated annual revenue and high-return investment opportunities is important. Using an accurate short-term rental calculator, it shouldn’t be a difficult task at all!
Rental Properties in Victoria
Once you have decided to buy a property, you have to consider the average price, population, nearby landmarks or attractions, and rental yields to expect – among the rest. It could be a challenge to find rented properties in Victoria, so here are some of the most recommended areas that you can look into & consider purchasing:
| Area | Average House Price | Average Rent Price (pcm) | Average Airbnb Revenue |
|---|---|---|---|
| Downtown | C$862,000 | C$1,350 | C$3,692 |
| Fairfield | C$990,000 | C$1,240 | C$2,244 |
| James Bay | C$1,074,000 | C$1,850 | C$3,264 |
Conclusion
In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15-30% gross rental yields, and 10-20% net. It’s also fun to do!
