Residents of Collingwood know that they live in one of the most idyllic summer vacation spots, heck all year round! So what is the best way to capitalize on the incoming tourists? Airbnb and other short-term rental web sites allow you to become a landlord and up your game in a big way but do the pro’s and con’s out-weight long-term rentals?
This article discusses the benefits of using your income property as a short-term rental or a long term rental. You just have to figure out what kind of property you have and what kind of landlord you might want to be. Of course you will need to consult with the regions short-term property by-laws and Ontario’s Residential Tenancies Act before you become a landlord.
Maintaining your Rentals
Long term rentals require attention year round, ensuring your building is in good shape and repairs are made when necessary. For the most part should not need to spend much time or money on rental maintenance. However a short-term rental is a different story. If you only rent a on weekends or a few nights at a time, rental maintenance needs to be done every few days or before the next renters arrive. A tip for offsetting that cost is building a cleaning fee into the rental price.
Advertising your Rentals
No longer do you need to worry about promoting your rental apartment on a community board or in the local newspaper. For the most part you don’t have to spend anything on dedicated online rental websites. Airbnb is a great example of a site that allows you to list your property for free, you just pay when someone books your place.
Searching for Renters
Now, who are you going to allow to rent your property? In the case of long-term renters you only have to go through the vetting process once a year or once every few years. When you decide to rent for the short-term you are renting to different people all the time. Vetting through people to make sure you’re comfortable with renting them your place takes a lot of time and increases your risk.
Getting Rental Reviews
If you’re considering using Airbnb you’re in luck! They have a review system that helps reduce some of the stress of trusting renters in your home. Guests and hosts stay accountable by leaving reviews of each other after a stay. You are under no obligation to rent to people with reviews that don’t meet your standards.
Pricing your Rentals
With short-term rentals you have the chance to charge different amounts depending on the day of the week or the season. Do consider the rules of the website before listing, but there are opportunities to charge a higher price on the weekends and more during the high season. There’s always flexibility to change the price than there is during a long-term lease.
Short-term rentals look most appealing in this light! Reason being, you get to rent them for as little as one night and you can rent out your own home when you go away. This can be a fantastic way to offset the cost of any upcoming vacations! This might be particularly appealing for those with vacation properties and second homes. You can use them when you want and rent them out when you’re away.
You may want to consider the investment of rental properties in Collingwood. The main reason you might prefer a long-term rental is for the stable income over a long period of time. Once a lease is signed, there’s a guaranteed cash flow for a set period of time. With short-term rentals, you leaving it up to chance.
Thinking about purchasing an income property?
Speak to a fully-licensed Collingwood REALTOR® that specializes in investment properties in Collingwood.