Tag: lat_48.4283182

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

Post author By Robyn Peña
Post date December 16, 2022

airbnb property for sale Victoria City Center

The City of Gardens is surprisingly known for more than just the lushing green spaces and parks. Known for plenty of historical buildings and architecture, some of the favorite tourist attractions in Victoria are the Royal BC Museum, Beacon Hill, and Craigdarroch Castle.

Before deciding to purchase a property in Victoria, whether it’s a townhouse or a luxury home for sale that you’re looking for, it’s certainly important to consider the major costs and revenue. While rental arbitrage in Victoria is fairly popular and does not require you to purchase a property, it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable.

At the same time, it’s also essential to consider the Airbnb rules in Victoria in order to operate an STR business without worrying about breaching the laws.

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“Although interest rates have increased in Victoria, this market can be a great opportunity for home buyers. Buyers can purchase a home with less competition compared to 6 months to a year ago.”
– By Ria Mavrikos on Victoria Real Estate Market

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 Victoria, 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 Victoria City Center?

Operating a listing in Victoria is certainly profitable! In fact, we can find this city among the most profitable rental markets in Canada.

Using an Airbnb income calculator, it was discovered that a 2-bedroom property in Victoria City Centre can generate an annual revenue of C$82,565 with a steady occupancy rate of 87% and a nightly rate of C$229.

airbnb property for sale Victoria City Center

Homes for Sale in Victoria, British Columbia

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 profitable properties in Victoria City Centre 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.

1376 Lynburne Pl #121A, Langford, BC V9B 6S1

1. Studio-type Property for Sale in Victoria

Near Fairfield Road
Asking Price: C$79,000

GROSS RENTAL YIELD	33.55%
ANNUAL REVENUE	C$26,506
CASH ON CASH RETURN	74.89%

810 Humboldt St #A514, Victoria, BC V8V 5B1

2. 1-Bedroom Property for Sale in Victoria

Near Fairfield Road
Asking Price: C$75,000

GROSS RENTAL YIELD	34.79%
ANNUAL REVENUE	C$26,091
CASH ON CASH RETURN	78.60%

848 Hockley Ave #42, Langford, BC V9B 2V6

3. 2-Bedroom Property for Sale in Victoria

Near the park that is located in the heart of Langford
Asking Price: C$179,900

GROSS RENTAL YIELD	18.86%
ANNUAL REVENUE	C$33,763
CASH ON CASH RETURN	30.82%

1498 Admirals Rd #41, New Songhees 1a, BC V9A 2R1

4. 3-Bedroom Property for Sale in Victoria

Near to Portage Park and the Gorge Waterway
Asking Price: C$199,900

GROSS RENTAL YIELD	41.30%
ANNUAL REVENUE	C$49,353
CASH ON CASH RETURN	98.13%

22241 Nisqually Rd SPACE 66, Apple Valley, CA 92308

5. 4-Bedroom Property for Sale in Victoria

1.7 miles Sandia Elementary School
Asking Price: C$190,000

GROSS RENTAL YIELD	24.76%
ANNUAL REVENUE	C$47,036
CASH ON CASH RETURN	48.50%

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 Victoria 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_48.4283182, lng_-123.3649533

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Victoria

Post author By Robyn Peña
Post date August 30, 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 Victoria, 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 Victoria, Angela manages 24 listings and I’m pretty sure that she doesn’t own all the properties. She made C$970,541 in the last 12 months.

How much can I make with rental arbitrage in Victoria?

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 James Bay, located in the V8V district, where some of the popular tourist destinations are situated.

This neighborhood is attractive for tourists and locals who like to be surrounded by a combination of nature, parks, and museums! During the summertime, many vacationers try their carriage tours and cruise ships at Ogden Point, hence the rental demand at peak!

Profit & Monthly Expense in Victoria

Based on Airbtics’ data, you can earn a whopping C$5,335 per month for a 3-bedroom apartment in James Bay alone. With the data provided, you can certainly tell that investing in a property in Victoria is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
C$3,300	C$5,335	C$1,067	C$968

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and the monthly expenses (C$5,335-C$3,300-C$1,067= C$968).

Startup Cost in Victoria

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$8,600	9 months

The average estimated startup cost (for furnishing) in Victoria is around C$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (C$6,600). Now that we have a total startup cost of C$8,600, cash return time can be calculated by dividing this by the monthly profit (C$968).

Given your monthly revenue of C$968, it will take approximately 9 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 Victoria!

Best Areas for Rental Arbitrage in Victoria

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

1. Downtown (V8T)

Downtown Victoria is the business centre of Greater Victoria and is known for its main attraction, the BC provincial legislative buildings! Here’s what you can expect in this neighborhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
Studio	C$1,350	C$3,692	89%	C$163
1-bedroom	C$1,700	C$4,614	92%	C$290
2-bedrooms	C$1,564	C$3,741	89%	C$298

According to our Airbtics Dashboard, there are more than 438 Airbnb listings with 299 condo properties and 256 one-bedroom properties in this area. The monthly revenue for most properties in Downtown is more than C$4,753 per month with occupancy being more than 86%.

2. Fairfield (M6K)

Bounded by James Bay, Fairfield is a popular neighborhood for young families because of its amenities, parks, and schools. Here’s what you can expect in this neighborhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
Studio	C$1,240	C$3,084	89%	C$215
1-bedroom	C$1,888	C$3,517	92%	C$212
2-bedrooms	C$2,750	C$4,200	78%	C$457

This area has a total of 61 Airbnb listings with 7 condo properties and 24 one-bedroom properties. The monthly revenue for most properties in Fairfield is more than C$4,598 per month with occupancy being more than 85%.

3. James Bay (V8V)

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! The neighborhood of James Bay is home to the Fisherman’s Wharf and Royal BC Museum which attracts a handful of vacationers. 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$3,084	89%	C$215
2-bedrooms	C$2,600	C$5,086	82%	C$320
3-bedrooms	C$4,500	C$7,393	87%	C$502

This area has a total of 73 Airbnb listings with 19 private room properties and 31 one-bedroom properties. The monthly revenue for most properties in James Bay is more than C$3,734 per month with occupancy being more than 86%.

Short-term rental regulations in Victoria

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

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 Properties in Victoria

Victoria is known as the City of Gardens and boasts its Inner Harbour & museums. According to local news, rental growth is expected to rise up to 10% in Victoria!

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

1. Rentals Ca

2. Zumper

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_48.4283182, lng_-123.3649533

Airbnb Rules All About Airbnb

Airbnb Rules in Victoria

Post author By Robyn Peña
Post date August 30, 2022

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!

Tags Airbnb Rules & Regulations, lat_48.4283182, lng_-123.3649533

🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

Is Property Investment Profitable in Victoria City Center?

Homes for Sale in Victoria, British Columbia

1. Studio-type Property for Sale in Victoria

2. 1-Bedroom Property for Sale in Victoria

3. 2-Bedroom Property for Sale in Victoria

4. 3-Bedroom Property for Sale in Victoria

5. 4-Bedroom Property for Sale in Victoria

Conclusion

What is Rental Arbitrage?

How much can I make with rental arbitrage in Victoria?

Profit & Monthly Expense in Victoria

Startup Cost in Victoria

Best Areas for Rental Arbitrage in Victoria

1. Downtown (V8T)

2. Fairfield (M6K)

3. James Bay (V8V)

Short-term rental regulations in Victoria

Rental Properties in Victoria

1. Rentals Ca

2. Zumper

How to Find Landlords for Airbnb Rental Arbitrage

Search Engines & Marketplaces

Communicate with Landlords

Is Airbnb legal in Victoria?

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

Short-term Rental Policy in Victoria

Rental Demand in Victoria

Property Investment in Victoria

Rental Properties in Victoria

Conclusion

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