Having a rental property can be a great way to get some more money in your pocket, especially lucrative rentals like short-term. Here are 6 things to consider before deciding if short-term rentals are the right option for you:

1. Demand

- Is the property seasonal?

- What is the target market?

Tip: check out on AirDNA to determine a rough occupancy rate for the area you are looking to invest in

2. Rates

- Will this property at this cost yield a profit? Or a loss? Over how many years?

Tip: check out AirDNA for estimated profits in the area you are looking to invest in and the variations between different types of units

3. Rules

- Are there any limitations on rental properties in this city, neighborhood or property type? 

Look out for: limitations on number of guests, number of reserved nights, parking regulations, etc.

4. Costs

- The obvious costs are the mortgage (if any), insurance, property tax and utilities.

- The not-so obvious costs are marketing, cleaning, repairs, on-call service or property managers, unexpected maintenance or repairs.

PROS: 

- high profit potential with nightly rate rentals and also seasonal fluctuations

- flexible bookings allow you to still utilise your property if needed

- less potential headaches since renters are in & out, no long term problems

- less usage since most renters will be visiting for an event/tourism, they will not be spending much time in the rental and there is down time in between renters

CONS:

- more maintenance: regular/deep cleaning is required in between renters

- fluctuating income based on seasonal fluctuations

If you have any questions or would like to discuss in further detail any of the items above, please give me a call at (905) 246-7830