Tag: lat_45.4208777

Investing in Property for Sale: How to Buy A Profitable Property for Airbnb in Ottawa City Center

Post author By Robyn Peña
Post date December 16, 2022

airbnb property for sale Ottawa City Center

Vastly known for hosting international music festivals, Ottawa offers plenty of beautiful natural resources and exquisite gastronomy! Since there are great universities in Ottawa, it is also a haven for property investors who want to cater to student accommodations.

However, it’s still recommended to learn about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Ottawa. Another excellent option is to do rental arbitrage in Ottawa as it’s fairly popular and does not require you to purchase a property.

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“Ottawa is still considered an affordable place to buy a home compared to other major urban centers.
Real estate in Ottawa will almost guarantee you great return on investment based on the steady growth of the housing market in almost any region you consider an investment property.”
– Christine Hauschild on Ottawa Property Investments

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, defining 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 Ottawa?

Ottawa certainly is a catch to property investors since it is one of the cities that offers the best rental income in Canada.

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in Ottawa can generate an annual revenue of C$62,794 with a steady occupancy rate of 60% and a nightly rate of C$233.

airbnb property for sale Ottawa City Center

Homes for Sale in Ottawa City Center

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 homes for sale in Ottawa under C$300,000 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.

2049 Lake St Unit 2C, Holland, MI 49424

1. Studio-type Property for Sale in Ottawa

1.5 miles to Lakewood Elementary School
Asking Price: C$59,500

GROSS RENTAL YIELD	24.86%
ANNUAL REVENUE	C$14,793
CASH ON CASH RETURN	48.82%

134 Set Ln, Bakersfield, CA 93308

2. 1-Bedroom Property for Sale in OTTAWA

1.3 miles Highland Elementary School
Asking Price: C$120,000

GROSS RENTAL YIELD	15.49%
ANNUAL REVENUE	C$18,591
CASH ON CASH RETURN	20.71%

319 Brynford Ave, Lansing, MI 48917

3. 2-Bedroom Property for Sale in OTTAWA

0.3 miles East Intermediate School
Asking Price: C$85,000

GROSS RENTAL YIELD	28.76%
ANNUAL REVENUE	C$24,446
CASH ON CASH RETURN	60.51%

17 Isabel St, Massena, NY 13662

4. 3-Bedroom Property for Sale in OTTAWA

0.6 miles Nightengale Elementary School
Asking Price: C$119,500

GROSS RENTAL YIELD	24.82%
ANNUAL REVENUE	C$29,655
CASH ON CASH RETURN	48.68%

12 Coles Creek Rd, Waddington, NY 13694

5. 4-Bedroom Property for Sale in OTTAWA

2.5 miles to Madrid Waddington Elementary School
Asking Price: C$189,000

GROSS RENTAL YIELD	23.46%
ANNUAL REVENUE	C$44,333
CASH ON CASH RETURN	44.60%

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 Ottawa such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property. Yet, if you’re still unsure about investing in Ottawa, we recommend you check other Canadian top rental markets, particularly the Airbnb revenue by city.

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_45.4208777, lng_-75.6901106

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Ottawa

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! In this article, we featured the entire process of Airbnb rental arbitrage in Ottawa, 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 Ottawa, Lisa manages 25 listings and I’m pretty sure she doesn’t own all the properties. She made C$667,178 in the last 12 months.

How much can I make with rental arbitrage in Ottawa?

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 Lower Town, located in the K1N district, which is generally home to affluent young professionals in Ottawa.

Since this neighborhood is centrally located and accessible to tourist areas, it has had an exceptional rental demand over the years!

Profit & Monthly Expense in Ottawa

Based on Airbtics’ data, you can earn a whopping C$2,907 per month for a 2-bedroom apartment in Lower Town alone. With the data provided, you can certainly tell that investing in a property in Ottawa is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
C$1,825	C$2,907	C$581	C$501

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and the monthly expenses (C$2,907-C$1,825-C$581 = C$501).

Startup Cost in Ottawa

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$5,650	11 months

The average estimated startup cost (for furnishing) in Ottawa is around C$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (C$3,650). Now that we have a total startup cost of C$5,650, cash return time can be calculated by dividing this by the monthly profit (C$501).

Given your monthly revenue of C$501, it will take approximately 11 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 Ottawa!

Best Areas for Rental Arbitrage in Ottawa

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

1. Vanier (K1L)

This neighborhood is one of the francophone areas in Ottawa and is also the least expensive neighborhood! Rental property investors who are looking for cash flow will discover great opportunities in Vanier. 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$1,040	C$1,793	94%	C$109
2-bedrooms	C$1,600	C$2,289	83%	C$173
3-bedrooms	C$2,023	C$3,064	90%	C$173

According to our Airbtics Dashboard, there are more than 54 Airbnb listings with 40 entire home properties and 20 one-bedroom properties in this area. The monthly revenue for most properties in Vanier is more than C$1,580 per month with occupancy being more than 60%.

2. Byward Market (K1A)

Considered as Ottawa’s entertainment centre, Byward Market consists of affordable properties and a vibrant neighborhood! The median rent for a two-bedroom apartment in this area is also 26% higher than the entire city of Ottawa. 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$1,675	C$2,488	72%	C$127
2-bedrooms	C$1,969	C$3,009	78%	C$153
3-bedrooms	C$1,900	C$3,336	63%	C$191

This area has a total of 54 Airbnb listings with 7 condo properties and 22 one-bedroom properties. The monthly revenue for most properties in Byward Market is more than C$1,478 per month with occupancy being more than 51%.

3. Lower Town (K1N)

Aside from this neighborhood’s low crime rate, it also has inexpensive properties and has barely tracked inflation. 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$1,400	C$2,628	74%	C$128
2-bedrooms	C$1,825	C$2,907	78%	C$188
3-bedrooms	C$2,300	C$3,264	82%	C$217

This area has a total of 118 Airbnb listings with 15 condo properties and 24 two-bedroom properties in this area. The monthly revenue for most properties in Lower Town is more than C$1,662 per month with occupancy being more than 62%.

Short-term rental regulations in Ottawa

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

Homeowners can offer short-term rentals in their own home (principal residence).
Renters can offer short-term rentals in the rental unit that is their principal residence unless prohibited by their landlord.
Condominium and housing co-operative unit owners can offer short-term rentals in their principal residence unless prohibited by their condominium corporation or housing co-operative
Rural homeowners and cottage owners can offer “cottage rentals” with a separate permit. This must be separate from any permit for their primary residence.
Short-term rental hosts are only able to list (market or book) a short-term rental through short-term rental platforms registered with the City.
Must include the City-issued host permit number and the maximum number of overnight guests, as noted on the host permit, on all listings

Rental Properties in Ottawa

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

1. Point 2 Homes

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 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!

Tags Airbnb Rental Arbitrage, lat_45.4208777, lng_-75.6901106

Airbnb Rules All About Airbnb

Airbnb Rules in Ottawa

Post author By Robyn Peña
Post date August 25, 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 other metrics such as the occupancy rates in Canada as well as the top cities for Airbnb rentals in order to have successful investment & long-term profitability! In this article, we featured Airbnb regulations in Ottawa 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 Ottawa.

Is Airbnb legal in Ottawa?

Don’t worry, Airbnb is legal in Ottawa! Ottawa is consistently ranked as the best place to live in Canada & is considered one of the best 100 cities in the world because of its diversity & strong economy.

Here is a little proof! As of June 2022, there are 21,289 nights available in Ottawa from Airbnb alone. Short And Suite manages 51 listings, while Corporate Stays and Lisa operates 35 and 25 respectively.

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

Currently, there are 1,627 Airbnb listings in Ottawa, with 58% of entire houses earning up to C$1,578 a month. The Average Occupancy Rate in Ottawa is 59% and the average daily rate is C$82. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Ottawa can make up to C$34,252 each year. Check out our Airbnb Income Calculator!

Short-term Rental Policy in Ottawa

Homeowners can offer short-term rentals in their own home (principal residence).
Renters can offer short-term rentals in the rental unit that is their principal residence unless prohibited by their landlord.
Condominium and housing co-operative unit owners can offer short-term rentals in their principal residence unless prohibited by their condominium corporation or housing co-operative.
Rural homeowners and cottage owners can offer “cottage rentals” with a separate permit. This must be separate from any permit for their primary residence.
Short-term rental hosts are only able to list (market or book) a short-term rental through short-term rental platforms registered with the City.
Must include the City-issued host permit number and the maximum number of overnight guests, as noted on the host permit, on all listings.

Rental Demand in Ottawa

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 Ottawa rent report, demand increased sufficiently and the vacancy rate remained stable at 3.4%.

Source: Ottawa Rental Demand

Property Investment in Ottawa

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

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 rental properties in Ottawa, 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
Vanier	C$700,000	C$1,040	C$1,579
Byward Market	C$645,650	C$1,675	C$2,283
Lower Town	C$724,900	C$1,800	C$2,800

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 Rental Arbitrage, lat_45.4208777, lng_-75.6901106

Airbnb Rules All About Airbnb

Airbnb Rules in Canada: What You Need To Know

Post author By Shivam Kaushik
Post date October 23, 2021

Your all in one guide to inform you about Airbnb rules in Canada. We have gathered and compiled data for 5 major cities to help you plan.

Home > Resources > Airbnb Regulations >

Your all in one guide to inform you about Airbnb rules in Canada. We have gathered and compiled data for 5 major cities to help you plan.

September 4, 2023

What are the rules for Airbnb in Canada?

Airbnb rules in Canada are highly local by nature and vary from one location to another. Since Airbnb’s establishment in 2008, renting out holiday homes to short-term guests has become a popular option to generate money. Purchasing a rental property and renting it out on Airbnb is another popular real estate investment method.

While certain Airbnb rules in Canada appear to be logical choices for investing in short-term rental properties, they may have legal concerns. It could even enact harsh rules that make running an Airbnb business nearly impossible. Short-term rental regulations have been imposed in different cities across Canada in an effort to slow Airbnb’s fast expansion.

Ottawa

Airbnb rules in Ottawa state that anybody seeking to host a unit on Airbnb would require permission from the city. The government adopted a new bylaw governing policy where hosts must first get a $110 host permit from the city. They must follow a tougher set of standards.

To rent out their property under the new bylaw, the operator’s house must also be his or her primary abode. While Airbnb rental arbitrage in Ottawa is also an option to have a passive income, hosts are expected to earn an average of C$28,936 annually for a 2-bedroom property. The figure is confirmed by Airbtics.

A short-term rental is a residence available for rent for short-term rent in its entirety or part, according to the bylaw.

Short-term rental licenses are available to corporations. Permits for certain properties are not issued if a condo corporation, landlord, or social housing provider has filed an objection with the city.

If By-law and Regulatory Services require it, short-term rental hosts respond to nuisances that arise during the rental period. To help minimize nuisance during the rental time, hosts must convey applicable restrictions and occupancy limitations to their guests.

Violators, both the hosts and guests, might face fines of up to $100,000 for each offense. The operators’ permits can also be revoked.

Vancouver

Airbnb rules in Vancouver require all short-term rental operators to have a business license and disclose their license number in all online postings and advertisements. While Airbnb rental arbitrage in Vancouver is another option for hosts, they are expected to earn an average of C$29,197 annually for a studio-type bedroom property.

The rules for vacation rentals in Vancouver are as follows.

Permitted:

Only operate from your major residence – the home where you live, as an owner or renter, and use it for bills, identification, taxes, and insurance.
Secondary homes or basement suites if the operator lives there full-time and it is their principal residence.

Not Permitted:

In ancillary buildings (such as a garage, art studio, trailer, or boat) or Rental 100 buildings.
Residences that are subject to the Empty Homes Tax (the tax applies to homes that aren’t the owner’s primary residence or aren’t rented for an extended period of time). Airbnb offers both homeowners and visitors new options.

Looking for more Canadian cities?

If you are looking for other profitable cities, then go ahead and check out the best cities to invest in Canada!

Toronto

Airbnb rules in Toronto prohibit short-term stays (less than 28 nights at a time) for listings that do not have a valid registration number or exemption listed.

For stays of less than 28 nights, the City of Toronto charges a four percent Municipal Accommodation Tax (MAT). Since January 1, 2021, Airbnb has started collecting and submitting the MAT.

In addition to this, Airbnb rental arbitrage in Toronto is another way to earn money without owning a property. Airbtics’s data shows that an average host in Toronto can earn annual revenue of up to C$48,227 for a 3-bedroom apartment in one of the city’s most profitable neighborhoods.

Montreal

Airbnb rules in Montreal require a certificate of categorization from the province for rentals of primary or secondary residences for less than 31 days.

Quebec distinguishes between individuals who provide tourist accommodations in their primary residence and those who provide tourist accommodations outside of their primary location.

Hosts who do Airbnb rental arbitrage in Montreal earn an average monthly profit of C$24,708 for a 3-bedroom apartment in one of the city’s most profitable neighborhoods.

Here are some of the things that need to be considered:

Licensing for businesses– Certain enterprises in Montreal require a permission or certificate. Consider reviewing these regulations to see if they apply to your activity.

Taxes- In Montreal, a tax on lodging applies when an accommodation unit is rented for less than 31 consecutive days under Québec sales tax. Other taxes that may apply to residents renting out lodging units are collected by the province of Quebec and municipalities.

As of October 1, 2017, Airbnb has begun to automatically collect the 3.5 percent lodging tax on behalf of Airbnb Hosts. This tax is collected and sent to the Province of Quebec on all Airbnb bookings lasting fewer than 30 days.

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Quebec City

Quebec residents who rent out their properties for less than 31 days will be forced to have a registration number from the province. It is a must for short-term rental operators that even Airbnb is prohibited from displaying listings without registration numbers.

Before renting out their property on a short-term basis, condo owners must obtain the approval of their syndicate or condo association. Similarly, tenants will need to obtain permission from their landlord.

The regulations will apply to the host’s “principal abode,” where he or she ordinarily resides. The criteria for “secondary dwellings,” which include cottages and furnished apartments, are different. The renter must complete an extensive form and submit it to the Québec Corporation, which regulates the province’s tourism industry.

Rent management- Rent increases in Quebec may be subject to the rent control system run by the government.

Taxes- Under Quebec sales tax, tax on lodging applies each time an accommodation unit is rented for less than 31 consecutive days in most tourism regions in Quebec.

Calgary

The local city council passed revisions in Airbnb rules in Calgary the Business License BylawThe new rules already require a business license to operate short-term rentals, as well as the installation of other regulations. Hosts who want to operate in Calgary must apply for a business license either online or in person at city hall.

Business licenses in Calgary- are classified into two types:

Tier 1: 1 to 4 rooms are available for rent.
Tier 2: 5 or more rooms available for rent.

In Calgary, the following Airbnb rules apply to short-term rental owners:

Hosts are unable to offer a room without one or more egress windows.
A maximum of two adults per room, excluding minors, is allowed by the hosts.
Hosts are not permitted to allow two or more reservations for the same dwelling to be made at the same time.
In any promotion for a short-term rental, hosts must mention their business license number.
The name, phone number, and email address of an emergency contact person who can be reached 24 hours a day, seven days a week must be posted.
Hosts must retain a record in English and in an electronic format that the Chief License Inspector finds acceptable.
Hosts are required to preserve permanent records of all transactions and present them to the Inspector upon request.

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Tags Airbnb Rules & Regulations, lat_45.4208777, lng_-75.6901106

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Is Property Investment Profitable in Ottawa?

Homes for Sale in Ottawa City Center

1. Studio-type Property for Sale in Ottawa

2. 1-Bedroom Property for Sale in OTTAWA

3. 2-Bedroom Property for Sale in OTTAWA

4. 3-Bedroom Property for Sale in OTTAWA

5. 4-Bedroom Property for Sale in OTTAWA

Conclusion

What is Rental Arbitrage?

How much can I make with rental arbitrage in Ottawa?

Profit & Monthly Expense in Ottawa

Startup Cost in Ottawa

Best Areas for Rental Arbitrage in Ottawa

1. Vanier (K1L)

2. Byward Market (K1A)

3. Lower Town (K1N)

Short-term rental regulations in Ottawa

Rental Properties in Ottawa

1. Point 2 Homes

2. Zillow

How to Find Landlords for Airbnb Rental Arbitrage

Search Engines & Marketplaces

Communicate with Landlords

Is Airbnb legal in Ottawa?

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

Short-term Rental Policy in Ottawa

Rental Demand in Ottawa

Property Investment in Ottawa

Rental Properties in Ottawa

Conclusion

What are the rules for Airbnb in Canada?

Ottawa

Vancouver

Toronto

Montreal

Deeper STR Insights. Broader Investment Opportunities.

Quebec City

Calgary

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