Last updated on June 22nd, 2023
Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business! In this article, we featured the entire process of Airbnb rental arbitrage in Whistler, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!
What is Rental Arbitrage?
Rental Arbitrage is a way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property!
It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time.
Here’s a proof! In Whistler, Bob manages 51 listings and I’m pretty sure that he doesn’t own all the properties. He made C$3,508,634 in the last 12 months.
How much can I make with rental arbitrage in Whislter?
Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Nesters, located in the V8E district, where the majority of schools, shopping, and recreational buildings are situated!
In general, Whistler is one of the best places to put up an Airbnb business because of its authentic alpine village & overwhelming tourists! This neighborhood is mostly preferred by vacationers because they have the option to ski, ziplining, and so many fun outdoor activities. In line with this, the rental demand in this area continuously increases!
Profit & Monthly Expense in Whistler
Based on Airbtics’ data, you can earn a whopping C$13,188 per month for a 3-bedroom apartment in Nesters alone. With the data provided, you can certainly tell that investing in a property in Whistler is profitable!
| Average Rent Price | Airbnb Monthly Revenue | Monthly Expense | Monthly Profit |
|---|---|---|---|
| C$3,644 | C$13,188 | C$2,638 | C$6,906 |
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and the monthly expenses (C$13,188-C$3,644-C$2,638= C$6,906).
Startup Cost in Whistler
Now that you have an overview of how much your monthly expense and revenue is, let’s talk about the start-up cost! How long does it take for an investor like you to get back the startup cost? Let’s take a look at this calculation:
| Total Startup Cost (Average startup cost + 2 months rent price) | Cash Return Time |
|---|---|
| C$9,288 | 1.3 months |
The average estimated startup cost (for furnishing) in Whistler is around C$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (C$7,288). Now that we have a total startup cost of C$9,288, cash return time can be calculated by dividing this by the monthly profit (C$6,906).
Given your monthly revenue of C$6,906, it will take approximately 1.3 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Whistler!
Best Areas for Rental Arbitrage in Whistler
Before investing in a particular area in Whistler, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 boroughs in Whistler ranked by their annual revenue, along with their occupancy & daily rates!
1. Whistler Creek (V8E)
This neighborhood is a laid-back and is best for targeting travelers with families who would like to be near the most famous ski resort in Whistler. Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$2,200 | C$4,364 | 78% | C$252 |
| 2-bedrooms | C$2,499 | C$6,688 | 79% | C$389 |
| 3-bedrooms | C$3,979 | C$10,696 | 62% | C$709 |
According to our Airbtics Dashboard, there are more than 214 Airbnb listings with 128 condo properties and 132 one-bedroom properties in this area. The monthly revenue for most properties in Whistler Creek is more than C$4,164 per month with occupancy being more than 61%.
2. Blackcomb (V8E)
Blackcomb is the largest ski resort in North America and this neighborhood is noted as one of the must-see areas in Whistler! Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$1,516 | C$5,332 | 74% | C$278 |
| 2-bedrooms | C$1,800 | C$8,347 | 72% | C$453 |
| 3-bedrooms | C$2,675 | C$10,764 | 66% | C$665 |
This area has a total of 321 Airbnb listings with 15 private room properties and 192 one-bedroom properties. The monthly revenue for most properties in Blackcomb is more than C$5,136 per month with occupancy being more than 55%.
3. Nesters (V8E)
Considered as one of the smallest neighborhoods in Whistler, Nesters is also one of the recommended areas for investment because of its close proximity to the shopping districts. Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$2,040 | C$6,089 | 85% | C$261 |
| 2-bedrooms | C$3,009 | C$9,884 | 76% | C$443 |
| 3-bedrooms | C$3,644 | C$13,188 | 85% | C$803 |
This area has a total of 57 Airbnb listings with 1 private room property and 38 one-bedroom properties. The monthly revenue for most properties in Nesters is more than C$5,512 per month with occupancy being more than 66%.
Short-term rental regulations in Whistler
To begin with, it’s certainly important to be familiar with the Airbnb rules in Whistler to make sure that your business will run smoothly. Here are some of the short-term rental regulations and ordinances to take note of:
- It is required to have business licences for all tourist accommodation activity, including the marketing of properties/units. If your unit is rented solely through a property management company, you are covered by their business licence.
- To obtain a business licence and market a property as tourist accommodation, the property’s zoning must list tourist accommodation or temporary accommodation as a permitted use. Properties with residential zoning may not be marketed as available to tourists, for any length of time.
- It is also necessary to give consideration to registered covenants that may affect a property. Development, rental pool and other covenants may place restrictions and obligations on property use.
- In Whistler, “residential” zoning means a fixed place of living, to which a person intends to return when absent. Therefore, regardless of the length of stay, tourist accommodation is not permitted in any residential-zoned area. To advertise and rent your property to tourists, your property’s zoning must state that tourist accommodation or temporary accommodation is a permitted use.
Rental Properties in Whistler
To run an Airbnb rental arbitrage in Canada, you can look at property websites and get a grasp of the ranging prices in Whistler:
1. Rew
2. Royal LePage
How to Find Landlords for Airbnb Rental Arbitrage
Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative!
Here are ways how you can find landlords that allow Airbnb rental arbitrage:
- Real Estate Websites
Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:
However, you can also find apartment & condominium properties online in the following websites:
Search Engines & Marketplaces
There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:
- Craigslist allows renters to specifically state what kind of property they are looking for. You can try typing in ‘landlords allowing Airbnb’ or ‘sublease property in (city name)’ and try other keywords to get you on the right track.
- Facebook marketplace has a vast community of landlords & renters, so you can try joining the right groups to lead you on the right path. Here are some of the finest Facebook groups that you can join:
Communicate with Landlords
If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!
