Tag: lat_43.6534817

Short Term Rental vs Long Term Rental in Canada

Post author By Ramon Meris
Post date June 13, 2023

Short Term Rental vs Long Term Rental in Canada

Key Takeaways

If you’re a traditional landlord in Canada looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

Everyone is bracing for the inevitable 2023 recession, which Canada is expected to experience second half of the year. As someone owning one or several rental properties in the Great White North, you are surely restrategizing your next step in the coming months.

Whether you own short-term or long-term rental properties, this article provides you with valuable insights on how to make sound investment decisions. We believe that economic data should not only be accessible to analysts, but also to property owners. By incorporating easy-to-use data analytics, you can maximize your real estate investments and stay ahead of the game in the upcoming dreaded recession.

Differences between Short Term Rental Vs Long Term Rental

Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.

On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals.

Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend. It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own.

Rental Regulations in Canada

Traditional rental

Rental regulations in Canada vary by province, but some of the common rules include the requirement for a written lease agreement, limitations on rent increases, and the right to privacy for tenants. Additionally, landlords are required to maintain their properties in a safe and habitable condition, and tenants have the right to request repairs or file complaints if necessary. By understanding the rental rules in Canada, both landlords and tenants can ensure a fair and transparent rental process.

Airbnb Regulations

To comply with the diverse short-term rental regulations across Canadian cities, it’s crucial to review each law and ensure your requirements are met. For a comprehensive understanding of the legislation and policies governing short-term rentals, we recommend checking out our previous article titled “Airbnb Rules in Canada.”

Advantages of Long-Term Rentals in Canada:

Below are the advantages of operating a long-term or traditional rental property in Canada:

Record-high population – Canada recorded its highest annual population growth rate at 2.7% for the first time last year since 1957. This was attributed to migration contributing at least 95% of the number of people increase.
A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in Canada is $2,004.
Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in Canada:

On the other hand, here are the perks that short-term rentals can offer to Airbnb hosts in Canada:

Positive growth in travel and tourism industry – In the next ten years, the GDP of the local tourism sector is poised to increase by an average of 4.4% each year, which is more than double the 1.9% growth rate of the country’s economy as a whole. This growth is expected to bring the industry’s GDP to almost CAD213 billion, which constitutes 6.8% of the entire economy.
Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

Canada Rental Markets

Here is a view of various parts of the Canadian rental market with their respective average yields to gauge the profitability of short-term vs long-term rental properties:

1. Toronto

Long-Term Rent: C$1,900/mo
Existing Airbnb listings: 9,228
Airbnb annual revenue: C$35,260
Airbnb occupancy rate: 80%
Seasonality: 57%
Average daily rate: C$135

2. Montreal

Long-Term Rent: C$1,900/mo
Existing Airbnb listings: 8,036
Airbnb annual revenue: C$37,501
Airbnb occupancy rate: 77%
Seasonality: 63%
Average daily rate: C$131

3. Ottawa

Long-Term Rent: C$1,850/mo
Existing Airbnb listings: 1,880
Airbnb annual revenue: C$28,698
Airbnb occupancy rate: 68%
Seasonality: 52%
Average daily rate: C$114

4. Vancouver

Long-Term Rent: C$3,795/mo
Existing Airbnb listings: 1,153
Airbnb annual revenue: C$74,661
Airbnb occupancy rate: 89%
Seasonality: 55%
Average daily rate: C$215

5. Calgary

Long-Term Rent: C$2,800/mo
Existing Airbnb listings: 257
Airbnb annual revenue: C$36,579
Airbnb occupancy rate: 78%
Seasonality: 48%
Average daily rate: C$116

6. Richmond

Long-Term Rent: C$3,950/mo
Existing Airbnb listings: 1,204
Airbnb annual revenue: C$32,639
Airbnb occupancy rate: 73%
Seasonality: 68%
Average daily rate: C$138

7. Edmonton

Long-Term Rent: C$945/mo
Existing Airbnb listings: 2,318
Airbnb annual revenue: C$22,419
Airbnb occupancy rate: 61%
Seasonality: 57%
Average daily rate: C$87

8. Dartmouth

Long-Term Rent: C$2025/mo
Existing Airbnb listings: 190
Airbnb annual revenue: C$38,536
Airbnb occupancy rate: 77%
Seasonality: 64%
Average daily rate: C$128

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of Canadian rental properties should consider strategizing their rental business to ensure financial security, especially in the threat of an economic recession.

In addition, we recommend analyzing profitable real estate opportunities in Canada to earn a nice income stream. Yet, you can also explore other markets outside Canada! For instance, you could also check out best cities to Airbnb in the US.

Now that you know the difference between short-term vs long-term rental income, Airbnb is the key to having better returns. But to make it work, Airbnb hosts must also do their part. Incorporating data analytics into your strategy can provide valuable insights for setting the right nightly rates. Fortunately, Airbtics offers macro and micro views of rental markets, enabling you to make data-driven decisions and increase your market rent.

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

Tags lat_43.6534817, lng_-79.3839347

Airbnb Investment All About Airbnb

Investing in Property for Sale: How to Buy A Profitable Waterfront Properties for Airbnb in Toronto

Post author By Robyn Peña
Post date December 16, 2022

airbnb property for sale Toronto

Known as the largest city in Canada, Toronto certainly does not disappoint travelers as it offers almost everything! From sports, shopping centers, art & crafts, to reputable universities, Toronto is undoubtedly one of the many markets that should not be missed out on in Canada.

The best part is that Toronto is one of the best real estate markets for rental income in Canada. However, before deciding to purchase a property, it’s certainly important to consider the major costs, revenue, and Airbnb occupancy rates in Toronto. Let’s not forget to consider the laws and regulations as well! In order to operate an STR business without worrying about breaching the Airbnb rules in Toronto.

It could be ideal to do rental arbitrage in Toronto as it’s fairly popular and does not require you to purchase a property, but it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable.

.
“Investing in Toronto real estate is still very profitable and with Toronto’s growing population, the demand for rentals remains stable.”
– By Pierre Carapetian on Toronto Real Estate

Airbnb occupancy rates by city state that an average host in Toronto can earn up to $26,244 during the peak seasons of September. With over 3,144 Airbnb listings in Toronto, it’s certainly a catch for property investors.

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Toronto, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Is Property Investment Profitable in Toronto?

Using an Airbnb profit estimator, it was discovered that a 2-bedroom property in Toronto can generate an annual revenue of C$81,930 with a steady occupancy rate of 86% and a nightly rate of C$250.

airbnb property for sale Toronto

New Houses for Sale in Toronto

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the Toronto properties for sale along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

Disclaimer: The properties featured in this article are indicated as examples and there is a possibility that they have already been sold and removed from the website's listings.

80 Huntington St Spc 361, Huntington Beach, CA 92648

1. Studio-type Property for Sale in Toronto

0.8 miles to John R. Peterson Elementary School
Asking Price: C$55,000

GROSS RENTAL YIELD	33.13%
ANNUAL REVENUE	C$18,220
CASH ON CASH RETURN	73.61%

80 Huntington St Spc 162, Huntington Beach, CA 92648

2. 1-Bedroom Property for Sale in Toronto

0.8 miles to John R. Peterson Elementary School
Asking Price: C$65,000

GROSS RENTAL YIELD	29.60%
ANNUAL REVENUE	C$22,199
CASH ON CASH RETURN	63.03%

6240 E Emerald Cove Dr Unit 171, Long Beach, CA 90803

3. 2-Bedroom Property for Sale in Toronto

0.5 miles to Kettering Elementary School
Asking Price: C$119,000

GROSS RENTAL YIELD	24.68%
ANNUAL REVENUE	C$29,371
CASH ON CASH RETURN	48.28%

15300 Magnolia St Spc 62, Westminster, CA 92683

4. 3-Bedroom Property for Sale in Toronto

0.4 miles to Leo Carrillo Elementary School
Asking Price: C$170,000

GROSS RENTAL YIELD	23.40%
ANNUAL REVENUE	C$39,787
CASH ON CASH RETURN	44.44%

14300 Clinton St Spc 53, Garden Grove, CA 92843

5. 4-Bedroom Property for Sale in Toronto

0.7 miles Clinton-Mendenhall Elementary School
Asking Price: C$155,000

GROSS RENTAL YIELD	27.57%
ANNUAL REVENUE	C$42,731
CASH ON CASH RETURN	56.94%

Conclusion

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Toronto such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions!

As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.

Tags Airbnb Investments, lat_43.6534817, lng_-79.3839347

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Toronto

Post author By Robyn Peña
Post date August 25, 2022

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!

Moreover, one of the most important factors to consider is the location and among the best cities to own a rental property in Canada is Toronto.

In this article, we featured the entire process of Airbnb rental arbitrage in Toronto, its profitability, along 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 Toronto, Julie manages 42 listings and I’m pretty sure she doesn’t own all the properties. She made C$1,737,314 in the last 12 months.

Is Airbnb legal in Canada?

Here’s the catch: Airbnb is certainly legal in Canada! As particularly stated in Airbnb rules in Toronto, hosts are prohibited to operate less than 28 nights at a time for listings that don’t have a valid registration number. Listen to one of our featured hosts from Toronto in our podcast, Into The Airbnb:

How much can I make with rental arbitrage in Toronto?

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 Yorkville, located in the M5R district, which is the fastest-growing area in the country.

Since this neighborhood is situated near upscale restaurants and tourist destinations, it’s mostly preferred by tourists & young professionals – and has an incredible rental demand!

How much can I make with rental arbitrage in Toronto?

Since this neighborhood is situated near upscale restaurants and tourist destinations, it’s mostly preferred by tourists & young professionals – and has an incredible rental demand.

Profit & Monthly Expense in Toronto

Based on Airbtics’ data, you can earn a whopping C$10,634 per month for a 3-bedroom apartment in Yorkville alone. With the data provided, you can certainly tell that investing in a property in Toronto is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
C$4,500	C$10,634	C$2,127	C$4,007

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and the monthly expenses (C$10,634-C$4,500-C$2,127= C$4,007).

Startup Cost in Toronto

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$11,000	3 months

The average estimated startup cost (for furnishing) in Toronto is around C$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (C$4,500). Now that we have a total startup cost of C$11,000, cash return time can be calculated by dividing this by the monthly profit (C$4,007).

Given your monthly revenue of C$4,007, it will take approximately 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 Toronto.

Best Areas for Rental Arbitrage in Toronto

Before investing in a particular area in Toronto, 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 Toronto ranked by their annual revenue, along with their occupancy & daily rates!

1. Cabbagetown

This popular and historic neighbourhood located in the downtown of Toronto is home to many artists, musicians, and writers. It’s a preferred area for many young professionals and people who want to enjoy the energy of this culturally rich place!

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	C$1,723	C$2,816	93%	C$153
2-bedrooms	C$2,050	C$3,694	90%	C$211
3-bedrooms	C$3,750	C$5,357	89%	C$418

According to our Airbtics Dashboard, there are more than 93 Airbnb listings with 24 condo properties and 3 one-bedroom properties in this area. The monthly revenue for most properties in Cabbagetown is more than C$2,135 per month with occupancy being more than 71%.

2. King West

Located in Toronto’s downtown area, King West is claimed to have the most attractive property types. It is also the city’s largest and busiest transit route and is home to many business professionals! 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$2,375	C$3,432	91%	C$232
2-bedrooms	C$2,500	C$5,842	87%	C$409
3-bedrooms	C$4,200	C$5,946	87%	C$533

This area has a total of 331 Airbnb listings with 221 condo properties and 206 one-bedroom properties. The monthly revenue for most properties in King West is more than C$2,940 per month with occupancy being more than 68%.

3. Yorkville

If you are looking to target various kinds of tourists and prefer long-term profitability in the business, this area might be the best one to invest in! Home to Canada’s most exclusive shopping districts, this borough is one of the fastest-growing areas in the country. 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$2,400	C$3,344	90%	C$223
2-bedrooms	C$2,600	C$4,762	81%	C$314
3-bedrooms	C$4,500	C$7,634	51%	C$1,651

This area has a total of 155 Airbnb listings with 17 private room properties and 101 one-bedroom properties in this area. The monthly revenue for most properties in Yorkville is more than C$3,282 per month with occupancy being more than 72%.

Short-term rental regulations in Toronto

To begin with, it’s certainly important to be familiar with the Airbnb rules in Toronto to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

Short-term rental operators must register with the City in order to operate in Toronto.
It is required to collect and remit a four percent (4%) Municipal. Accommodation Tax (MAT) on all rentals
Hosts will also need to provide the name and telephone number of an emergency contact person who will be available 24 hours a day during rental periods. The city of Toronto will also require that hosts keep all records of short-term rental activity which will need to be provided to the city upon request.
Under the new rules, Torontonians will only be able to host short-term rentals in their principal or primary residence, with homeowners and tenants both able to participate.
Hosts will also need to ensure that their property is located in a residential zone, or the residential component of mixed-use zones.
Hosts renting their entire home while they are away will only be able to rent their entire home for a maximum of 180 nights per year. While there is no limit to nights for renting private rooms, a host can only rent up to three bedrooms if they are renting multiple rooms in their residence.

Rental Properties in Toronto

Since Toronto is known for its cultural diversity, this metropolis is home to towering buildings and busy streets. While the number of executives & business professionals are increasing in Toronto, the demand for rentals also skyrockets!

To run an Airbnb rental arbitrage in Canada, you can look at property websites and get a grasp of the ranging prices in Toronto:

1.Toronto Rentals

2. Zillow

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 on 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!

Tags Airbnb Rental Arbitrage, lat_43.6534817, lng_-79.3839347

Airbnb Rules All About Airbnb

Airbnb Rules in Toronto

Post author By Robyn Peña
Post date August 24, 2022

If you are looking to buy investment properties 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 Toronto 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 Toronto.

Is Airbnb legal in Toronto?

Don’t worry, Airbnb is legal in Toronto! This city is home to beautiful museums and is known for its global competitiveness. It is also consistently ranked when it comes to cities with the best quality of life!

Here is a little proof! As of August 2022, there are 102,629 nights available in Toronto from Airbnb alone. Simply Comfort manages 55 listings, while Julie and Alec & Lily operates 42 and 39 respectively.

How much can I make by running an Airbnb in Toronto?

Currently, there are 8,456 Airbnb listings in Toronto, with 39% of entire houses earning up to C$3,834 a month. The Average Occupancy Rate in Toronto is 54% and the average daily rate is C$170. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Toronto can make up to C$52,925 each year. Check out our Free Airbnb Calculator!

Short-term Rental Policy in Toronto

Short-term rental operators must register with the City in order to operate in Toronto.
It is required to collect and remit a four per cent (4%) Municipal Accommodation Tax (MAT) on all rentals.
Hosts will also need to provide the name and telephone number of an emergency contact person who will be available 24 hours a day during rental periods. The city of Toronto will also require that hosts keep all records of short-term rental activity which will need to be provided to the city upon request.
Under the new rules, Torontonians will only be able to host short-term rentals in their principal or primary residence, with homeowners and tenants both able to participate.
Hosts will also need to ensure that their property is located in a residential zone, or the residential component of mixed-use zones.
Hosts renting their entire home while they are away will only be able to rent their entire home for a maximum of 180 nights per year. While there is no limit of nights for renting private rooms, a host can only rent up to three bedrooms if they are renting multiple rooms in their residence.

Rental Demand in Toronto

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 Toronto rent report, Toronto experienced a 24% growth year over year!

Source: Toronto Rental Demand

Property Investment in Toronto

If you are looking to start an Airbnb business in Canada, particularly in Toronto, 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 Toronto

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 Toronto, 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
Liberty Village	C$725,000	C$1,695	C$2,847
King West	C$597,500	C$2,375	C$3,179
York Ville	C$726,990	C$2,400	C$3,084

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!

Tags Airbnb Rules & Regulations, lat_43.6534817, lng_-79.3839347

Airbnb Occupancy All About Airbnb

Airbnb Occupancy Rates in Canada + Best Cities for Investment in 2022

Post author By Robyn Peña
Post date April 25, 2022

Are you planning to start an Airbnb business with a breathtaking view of the Northern lights? Canada is the best place to do so!

Located on the North American continent, Canada is certainly a fascinating country that offers more than just maple syrup! This country has the longest coastline in the entire world and is home to the magical Niagara Falls. One of the things that Canada is famous for is its national dish ‘poutine’ – which is a perfect match with their very own craft beer!

Canada was recognized for its record-breaking year with a total number of 22.1 million travelers in 2019, however, just like many other countries around the globe, was vastly affected by the pandemic. According to Statistics Canada, the easing of travel restrictions in July 2021 has tremendously improved the overall tourism in the country.

In this article, we will talk more about the Airbnb occupancy rates & monthly revenue in the beautiful country of Canada and compare each city! We will also give some recommendations of the best cities & neighborhoods that are worth investing in. Let’s dive in!

Frequently Asked Questions

Is Airbnb legal in Canada?

Yes, it is mostly legal with strict compliance with tax, rules, and regulations. Learn more about Airbnb rules in Canada here.

When is the peak season in Canada?

Typically, the months of July to August are the peak seasons in Canada with an average of 46% occupancy rate.

What is the average daily rate in Canada?

According to Airbtics' Data, the average daily rate in Canada is CAD$113 for studio-type rooms.

Which city in Canada has the highest occupancy rate?

As of April 2022, the city of Vancouver has the highest occupancy rate at 54%.

Where is the best place in Canada for Airbnb?

Based on our in-depth research, if you are looking forward to maximizing your monthly revenue in Canada, Vancouver is ranked 1st on our list.

Aside from its high occupancy rate of 54%, you can also set a price as cheap as CAD$119 & earn an average of CAD$2,268 per month!

What are the best amenities that I should add to my Airbnb?

According to Airbnb, here are some of the popular amenities that you might want to consider having in your business in Canada:

- An outdoor pool

- Pet-friendly environment

- Free parking on premises

- Fully-equipped kitchen

- Reliable Wi-Fi

- Air conditioning

Not satisfied with this list? Check out these top amenities that all Airbnb hosts must have this 2022!

Do I need a license for Airbnb in Canada?

Yes, a business license is required for all short-term rental operators in Canada.

What are the local regulations in Canadian cities?

Since there are various local regulations such as business permits required for each city, here are the following short-term regulations in each Canadian city:

How do I report Airbnb income in Canada?

You can report your rental income by using the Form T776 (Statement of Real Estate Rentals) and make sure to have a detailed record of your rental expenses for the tax return.

The Canada Revenue Agency (CRA) states the rule of thumb that the more services you provide, the greater chance that your rental services will be considered a business.

How much can an Airbnb host make annually in a Canadian city?

According to our Airbnb calculator, the city of Vancouver has the highest occupancy rates in Canada and an Airbnb host can make an annual revenue of CAD$2,268.

Presented in the photo above is a general overview of the average monthly revenue of the 5 cities in Canada as of April 2022.

We utilized the Airbtics data analytics tool and filtered the listings in studio-type rooms in order to come up with accurate data of the respective cities in Canada. Check out the following rates in the biggest cities of the Great White North:

Toronto, Ontario:

Occupancy Rate: 44%

Median Daily Rate: C$122

Average Monthly Revenue: C$1,902

Quebec City, Quebec:

Occupancy Rate: 41%

Median Daily Rate: C$123

Average Monthly Revenue: C$1,652

Vancouver, British Columbia:

Occupancy Rate: 54%

Median Daily Rate: C$119

Average Monthly Revenue: C$2,268

Calgary, Alberta:

Occupancy Rate: 46%

Median Daily Rate: C$110

Average Monthly Revenue: C$1,657

Ottawa, Ontario:

Occupancy Rate: 46%

Median Daily Rate: C$90

Average Monthly Revenue: $1,349

Best 5 Cities & Neighborhoods in Canada for Airbnb Investment

Toronto, Ontario

Found on the northwest side of Lake Ontario, the mesmerizing city of Toronto is the capital of Ontario province. This city is known for its multiculturalism, unique landmarks, sports & music scenes, and is also home to one of the world’s largest film festivals!

While there are plenty of best things to do in Toronto, it’s also important to take note that this city is the leading tourism destination in Canada with over 27.5 million visitors annually! From a unique experience of viewing the CN Tower, to going back to a medieval feels of Casa Loma, or dining in the Entertainment district — Toronto has a lot to offer to all kinds of tourists, whatever the season may be.

In addition to this, here are some of the best neighborhoods that you might consider investing in Toronto:

For shopping & dining – Dundas and Spadina

For nightlife & entertainment: Entertainment District

For travelers with families: Rockcliffe-Smythe

For LGBT Community: The Village

QUEBEC CITY, QUEBEC

If you’re looking for a glimpse of Europe in Canada, Québec City is the missing piece of the puzzle!

Known for its European architecture, the majority of people in this city are French speakers. Some of the best tourist attractions in Québec City include Mont-Tremblant where you can have an extraordinary skiing experience, visit the tourist central & dine in one of the tasty restaurants in Palace Royal, and catch symphony performances at Grand Théâtre near the Parliament Building.

The tourism operators in Québec City reported great news in 2021 that it exceeded their expectations: 60-70% hotel occupancy rates and 100% restaurant occupancy rates! With the historic district for Old Québec declared as a UNESCO world heritage site, this city is undoubtedly attracting more and more tourists annually. Furthermore, let’s discuss the compelling neighborhoods in Québec:

For nightlife & entertainment: Saint-Jean-Baptiste

For art, music, theatre & film enthusiasts: Montcalm

For travelers with families: Limoilou

For student travelers / historians: Old Québec

vancouver, british columbia

Situated on a peninsula in the Strait of Georgia, Vancouver was ranked 3rd as the most livable place in the world because of its high standard of living & quality of life! Filled with nature’s wonders and busy cultural life, this city has a handful of exciting things to offer.

To name a few beautiful must-see places in Vancouver, Stanley Park is famous for its closeness to nature, outdoor activities & breathtaking sceneries. Next to this is the beautiful Granville Island which is considered the thriving center of activity, and of course, shopping in the public market! Vancouver’s Tourism Industry stated that tourism contributes over $14 billion in total revenues to the Metro Vancouver economy annually. Without a doubt, this city ranked 1st on our list with the highest occupancy rate of 54% because of its endless wonders!

Check out the following list of neighborhoods which will serve as your guide for running an Airbnb business in Vancouver:

For sightseeing: Vancouver South

For business travelers: Downtown

For travelers with families: West End

For beachfront areas & outdoor recreation: Kitsilano

For nightlife & bars: Coal Harbour

CALGARY, ALBERTA

As the financial centre of western Canada, Calgary plays a vital role in the development of the region’s gas & oil industry. Located in Southern Alberta, this city is famous for hosting the Calgary Stampede every year of July which usually has over 90% of hotel occupancy rates! Because of its excellent outdoor festivals and close proximity to the mountains, this city attracts over 7.7 million from around the globe annually.

Aside from visiting the 10-day Calgary Stampede, there are so many amazing things you can explore in Calgary! You can spend an entire day in Banff National Park, take the Rocky Mountaineer Rail tour, or visit a few of the remarkable urban parks including Bowness & Fish Creek Provincial Parks. With a similar occupancy rate as Ottawa of 46%, Airbnb hosts can earn an average of CAD$1,657 in Calgary.

Here are some of the neighborhoods that are worth investing in according to your preference:

For travelers with families & sightseeing: Downtown

For nightlife & entertainment: 17th Avenue

For outdoor experience: Kananaskis Country

ottawa, Ontario

Branded as the UNESCO City of Design, Ottawa is Canada’s capital city!

Ottawa’s Tourism Industry recorded this city as a top national destination for Canadian & international associations with 26 major events hosted this 2022. The majority of tourists are stoked to visit the iconic landmarks in Ottawa including Parliament Hill, Rideau Canal for a magical cruise trip, and visit the Notre-Dame Cathedral or Canadian Museum of Nature!

In addition to this, since Ottawa is an employer of choice and has the lead in domestic market share growth, it has increased the number of visitors and has grown its international & domestic market share this 2022. Finally, let us go through the most recommended neighborhoods in Ottawa and classify them accordingly:

For shopping: Kanata & Glebe

For travelers with families: Westboro

For night clubs & restaurants: ByWard Market

looking for more canadian cities?

If you are looking for other Canadian cities, check out the other best cities to invest in real estate in Canada and find out more!

ARE THERE ANY RELEVANT BLOGS?

After in-depth research about Canada’s Airbnb occupancy rates, we have come to the conclusion that Airbnb is certainly profitable in this country. As long as you have the resources, rates for comparison, and the drive to run an Airbnb business in this beautiful country – you’re almost there and set to start!

Now that you have insight and data on the major cities in Canada for studio-type bedrooms, don’t get settled just yet because there’s a long way to go. Fortunately, for hosts like you, we have a reliable data analytics tool that can help you figure out a strategy for your Airbnb business! If you will base your assumptions on articles portraying poorly estimated costs or a wild guess, then you will certainly find inaccurate results.

With the help of our all-in-one analytics service, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features. Try Airbtics now and stand out among your competitors!

Tags Airbnb Occupancy, lat_43.6534817, lng_-79.3839347

All About Airbnb How to Start an Airbnb

How to Start Airbnb in Canada

Post author By Shivam Kaushik
Post date October 2, 2021

How to start airbnb in canada, this question is in every new host’s mind when starting out their journey. Let’s get the answers today!

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How to Start Airbnb in Canada

How to start airbnb in canada, this question is in every new host’s mind when starting out their journey. Let’s get the answers today!

September 4, 2023

If you’re wondering how to start Airbnb in Canada, you’ve come to the right blog. Before we get to the answers to your questions, let’s talk about Airbnb.

Most people who start their STR (Short-Term Rental) journey usually do it as a side hustle. Many are looking to rent out a spare room, a second home, an attic, or a vacation home. On average, an Airbnb income potential is $1,000/-month as a side hustle. But there are many hosts doing STR as a full-fledged business and making a fortune. In fact, most people making a fortune doing Airbnb full-time are mostly doing Rental Arbitrage.

Here’s what you need to know about Airbnb

Airbnb has established itself as a stronghold in the real estate industry, connecting property owners with individuals who want to learn about different cultures and activities. Airbnb, a prominent short-term home rental service, offers both homeowners and visitors new options. When done correctly, Airbnb hosting can help you earn a lot of money. If you have spare space in your home, Airbnb might be a great way to supplement your income or perhaps convert your hobby into a full-time job.

How Airbnb works for hosts?

Airbnb offers a variety of hosting choices, including renting out the extra room in your house, renting out your complete home, and hosting local experiences. Here’s a step-by-step guide on how Airbnb works for hosts:

1. You must first create a free Airbnb account in order to start renting out the extra room in your house.

Then, in the upper right-hand corner of the page, click “become a host.”

2. The next step is to establish a listing for your space. A listing is similar to a profile page for the place you wish to rent which issimilar to a social media profile. The more attractive and descriptive your page is, the more people will see it.

3. It’s a good idea to make your area as appealing as possible and learn how to take the best Airbnb photos. What should your fee be? Airbnb assists you in determining pricing by displaying local averages.

On Airbnb, you can also make money by hosting an experience. “Airbnb experiences are activities created and conducted by locals who are passionate about what they do. They go above and beyond traditional tours or seminars by immersing guests in a host’s unique world,” according to the Airbnb website.

If you wish to host an experience, look over Airbnb’s quality guidelines for experience criteria. Basically, the visitor must be given access to something, be able to participate in something, and be given a unique perspective. Design your experience after studying the quality requirements and submitting it to Airbnb for approval. You are now ready to publish and host your experience after it has been authorized.

2. Airbnb host requirements in Canada:

Non-residential

Given the fact that collecting rent from Canadian real estate or disposing of Canadian real estate might make you liable to Canadian income tax, determining whether you are a resident or non-resident of Canada can be rather complicated.

You must pay Canadian income taxes if you are a non-resident of Canada and have taxable rental income in Canada as a consequence of your Airbnb taxes. The income tax treaty between Canada and the United States, however, can offset the tax rate. You should follow the guidelines described in Income Tax Guide Under Section 216 since you are receiving rental income.

However, you can decrease the amount of tax you owe by filing a separate Canadian tax return to report your rental income.

Residential

If you are deemed a Canadian resident, you must adhere to the tax regulations that apply to residents. Except for Quebec citizens, Airbnb hosts in Canada are required to report their Airbnb revenue to the Canada Revenue Agency (CRA). Your gains from rental activities will most likely be deemed rental income if you include typical amenities that are common to all rentals, such as heat, electricity, in-suite laundry, and parking. If you offer extra services like cleaning, security, or meals, you will be deemed a company.

Before you second-guess yourself, remember that because you’re reporting the income, you’re also eligible to deduct expenses linked to that revenue.

3. What are the tax benefits that Airbnb hosts claim in Canada?

Whether your Airbnb revenue is classified as rental or company income, you’ll want to deduct as many qualified costs as possible to lower your tax bill. Here are some examples of vacation rental charges you can claim:

The interest on your rent or mortgage
The cost of cleaning products or the cost of a cleaning service
The cost of new towels and bedding for guests
Any small additions or renovations to the guest area (i.e., adding a fresh coat of paint to the room)
The price of breakfast and snacks for visitors
Soap, shampoo, and other toiletry costs
Whether you rent a storage locker or place a lock on a cabinet, you may have to pay fees to store your belongings
The expense of adding a keypad or lockbox so that guests may check in themselves
The price of creating new keys
Any maintenance or administration costs you could pay to have your listing maintained by a third party
If you own your house, you will have to pay property taxes (only for the period your property was available for rent)
Travel expenses to and from your rental property to collect rent, check on visitors, prepare the property, and so on.

4. Responsible hosting in Canada

Cleanliness and good health- In general information about hosting places to stay, you may find information on Airbnb’s 5-step improved cleaning procedure.

5. Permissions and general regulations

It’s crucial to double-check that you’re allowed to host on your property. Contracts, legislation, and community rules are all examples of constraints. Consult a lawyer or your local government to learn more about the regulations, limits, and requirements that apply to your situation.

Permits and contractual agreements- Subletting and hosting are sometimes prohibited by leases, contracts, building regulations, and community rules. Examine any contracts you’ve signed or get in touch with your landlord, community council, or other government agency.
Mortgage stipulations- Check with your lender to see if there are any limits on subletting or hosting if your home has a mortgage (or any other type of debt).
Housing limitations that are subsidized- Subsidized housing frequently includes restrictions prohibiting unlicensed subletting. If you live in a subsidized housing neighborhood and want to become a host, contact your local housing authority or housing association.
Housemates- Consider creating a formal agreement with your housemates to outline expectations if you share a home with others. Housemate agreements might cover topics such as how often you expect to host, guest etiquette, revenue sharing, and more.

6. Courtesy

Helping your visitors understand appropriate practices for interacting with your community is an important part of being a responsible host. You’re helping to create a fantastic experience for everyone when you share local norms and customs with your guests.

Rules of the house- Your home rules can be entered in the Additional remarks area of your Airbnb account’s Listing information. When you express your expectations with your guests up front, they typically appreciate it.
Neighbours- If you’re going to host, it’s typically a good idea to notify your neighbors. This provides them the opportunity to express any issues or reservations they may have.
Parking- Inform your visitors about any parking restrictions in your building or area. For example:
- Only park in an allotted spot on Tuesdays and Thursdays due to street cleaning
- Don’t park on the west side of the street on Tuesdays and Thursdays due to street cleaning
- Street parking is only accessible between 7 p.m. and 7 a.m.
Pets- To begin, check your lease or building bylaws to see if there are any pet restrictions. If you allow guests to bring their dogs, they’ll enjoy knowing where they can exercise them and dispose of their waste. If a guest’s pet annoys the neighbours, have a backup plan in place, such as the phone number of a local pet kennel.

7. Insurance

Work with your insurance agent or carrier to figure out what kind of responsibilities, restrictions, and coverage you’ll need for your individual situation.

Host Protection Insurance and Host Guarantee- The Host Guarantee and Host Protection Insurance offered by Airbnb provide minimal coverage for the stated damages and liabilities. These, however, do not replace homeowners’ or renters’ insurance, nor do they provide enough liability coverage. You may also be required to meet other insurance requirements.
Basic insurance benefits and liability- Check with your insurance agent or carrier to see if your homeowners or renters policy provides enough liability coverage and property protection for your listing.

Looking for the Best Canadian Cities for Airbnb Investments?

If you are looking for a lucrative Canadian rental market, make sure to check out the most profitable Airbnb locations in Canada!

8. How much can an Airbnb host earn in Canada?

While Airbnb occupancy rates in Canada vary per city, it’s important to know beforehand about your profit as a host. For instance, here is a graph of the average monthly revenue and occupancy rates of 5 major cities in Canada.

1. Airbnb Profitability in Toronto

Occupancy rate: 75%
Annual revenue: C$33,228
Average Daily Rate: C$131

2. Airbnb Profitability in Quebec

Occupancy rate: 69%
Annual revenue: C$44,460
Average Daily Rate: C$179

3. Airbnb Profitability in Vancouver

Occupancy rate: 87%
Annual revenue: C$57,119
Average Daily Rate: C$168

4. Airbnb Profitability in Calgary

Occupancy rate: 67%
Annual revenue: C$27,328
Average Daily Rate: C$102

5. Airbnb Profitability in Ottawa

Occupancy rate: 65%
Annual revenue: C$27,605
Average Daily Rate: C$111

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Tags How to Start an Airbnb, lat_43.6534817, lng_-79.3839347

Key Takeaways

Introduction

Differences between Short Term Rental Vs Long Term Rental

Rental Regulations in Canada

Traditional rental

Airbnb Regulations

Advantages of Long-Term Rentals in Canada:

Advantages of Short-Term Rentals in Canada:

Canada Rental Markets

1. Toronto

2. Montreal

3. Ottawa

4. Vancouver

5. Calgary

6. Richmond

7. Edmonton

8. Dartmouth

Conclusion

Be on Top of Your Airbnb Market &Make Your Property Investment Recession Ready!

Is Property Investment Profitable in Toronto?

New Houses for Sale in Toronto

1. Studio-type Property for Sale in Toronto

2. 1-Bedroom Property for Sale in Toronto

3. 2-Bedroom Property for Sale in Toronto

4. 3-Bedroom Property for Sale in Toronto

5. 4-Bedroom Property for Sale in Toronto

Conclusion

What is Rental Arbitrage?

Is Airbnb legal in Canada?

How much can I make with rental arbitrage in Toronto?

How much can I make with rental arbitrage in Toronto?

Profit & Monthly Expense in Toronto

Startup Cost in Toronto

Best Areas for Rental Arbitrage in Toronto

1. Cabbagetown

2. King West

3. Yorkville

Short-term rental regulations in Toronto

Rental Properties in Toronto

1.Toronto Rentals

2. Zillow

How to Find Landlords for Airbnb Rental Arbitrage

Search Engines & Marketplaces

Communicate with Landlords

Is Airbnb legal in Toronto?

How much can I make by running an Airbnb in Toronto?

Short-term Rental Policy in Toronto

Rental Demand in Toronto

Property Investment in Toronto

Rental Properties in Toronto

Conclusion

Frequently Asked Questions

Best 5 Cities & Neighborhoods in Canada for Airbnb Investment

Toronto, Ontario

QUEBEC CITY, QUEBEC

vancouver, british columbia

CALGARY, ALBERTA

ottawa, Ontario

looking for more canadian cities?

ARE THERE ANY RELEVANT BLOGS?

How to Start Airbnb in Canada

How to Start Airbnb in Canada

Here’s what you need to know about Airbnb

How Airbnb works for hosts?

2. Airbnb host requirements in Canada:

Non-residential

Residential

3. What are the tax benefits that Airbnb hosts claim in Canada?

4. Responsible hosting in Canada

5. Permissions and general regulations

6. Courtesy

7. Insurance

Looking for the Best Canadian Cities for Airbnb Investments?

8. How much can an Airbnb host earn in Canada?

1. Airbnb Profitability in Toronto

2. Airbnb Profitability in Quebec

3. Airbnb Profitability in Vancouver

4. Airbnb Profitability in Calgary

5. Airbnb Profitability in Ottawa

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Make Your Property Investment Recession Ready!

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