Should You Airbnb Your Investment Property?
Short-term Rentals have gained popularity over the last decade due to platforms such as AirBNB making it easier for the average person to book unique stays. Whether it be a person travelling for vacation, going to school, in-between houses or simply looking for a weekend getaway the platform services all needs. The Covid-19 Pandemic has caused people to look for options within their local area for travel causing spikes in short-term rental occupancies.
At RLT Real Estate Co. we understand the needs served by short-term rental properties. We have served people from all walks of life staying in our properties for various purposes. We have learned to value the ability of platforms such as AirBNB to solve problems such as shortages in rental markets in Ontario. We have people who prefer to book stays with us rather than hotels due to the amenities we provide making it easier for us guests to feel at home, always. Often we have individuals and groups staying for weeks at a time because we are the best option for them and their families regardless of their need for temporary housing.
Should I Rent Out My Property On AirBNB?
This is a question we are often asked by our family, friends and clients.
The simple answer is: If it’s something you feel like you can do we encourage it, especially if you are in a high traffic area or in a vacation/cottage area.
As we mentioned above, the demand for short-term rental properties in Ontario is definitely there.
Aside from this these are additional benefits which you should consider:
- You will probably get more cashflow than a regular long-term rental property. The more amenities you offer, the higher nightly rates you can charge. Depending on where you are located, during peak season, you can adjust your nightly rates to capitalize on the influx of tourists.
- You are partaking in a solution which serves an area of real estate that is still new.
- You will have more control over your property in case you need to sell, renovate or have for personal use. You are able to control your calendar. If you need the property empty on specific dates or want to sell, its very easy to just block those dates on the Airbnb platform so that no one occupies the home and you can do whatever you please.
- You don’t have to worry about non-payment. Airbnb is a secure booking platform which takes the payments from the guests and deposits it into your bank account automatically. With long-term tenants, you can never know if they will default on their payments.
If you want to participate in this business model but are unsure of where to start feel free to contact us for a consultation. We can guide you and you can leverage our experience to better understand if Airbnb is for you.