MoveBuddy’s guide to the short-term rental market in Canada
Many Canadians are considering the possibility of converting a basement, second property, or other unused housing possibility into a short-term rental unit.
The possibility of generating passive income from a short-term rental unit is hard to ignore. However, it can be hard to know where to start.
Don’t worry: We’ve got you! MoveBuddy is happy to provide the following guide for Canadians looking to create a short-term rental unit.
Understanding local regulations
Before putting your property up for short-term rental, it's crucial to familiarize yourself with local laws and regulations. Depending on your province, you might need specific licenses or permits to legally rent out your property. Investigate your local government's guidelines, as some places mandate a business license or zoning permit for short-term rentals.
Additionally, be prepared to handle additional property taxes and business taxes on your earnings as a renter. Researching city and provincial regulations in advance can prevent legal issues down the road. Ensure your rental complies with all legal standards before listing it on a short-term rental platform.
Meeting housing standards
Ensure your short-term rental meets basic housing standards, including fire exits, reliable heating, and an absence of environmental hazards. Familiarize yourself with potential inspections based on provincial regulations, and research your city's housing requirements to avoid legal complications.
Setting up your short-term rental
Distinguish your short-term rental by creating a unique and comfortable experience for guests. Consider adding amenities or themed rooms to make your property stand out. Before designing, make sure your accommodations meet the necessary standards.
Upgrading private spaces
Even if you typically rent shared spaces, consider offering a private room for added appeal. If you have a spare bedroom, furnish it with essential items like a bed, desk, and side table. Renovate if needed, addressing any damages or adding a private bathroom to enhance privacy.
Building a guest suite
Differentiate your rental by offering a guest suite, including a private bathroom and kitchen. Consider investing in renovations, converting existing spaces or adding an extension to your property. Explore tax-deductible loans for funding upgrades.
Providing amenities
Enhance the guest experience by providing extra luxuries, such as toiletries, a coffee maker, or cooking supplies. Small additions like board games can leave a lasting impression and lead to positive reviews.
Establishing rules
As a short-term rental host, set guidelines for pricing, availability, discounts, and minimum stay requirements. Clearly communicate rules about smoking, guests, and other policies. Establish expectations with guests before their stay.
Maintaining your rental
Prioritize cleanliness to earn positive reviews and attract new customers. Deep clean your rental after each stay and be prepared for necessary repairs over time. Address damages caused by guests while considering wear and tear.
Getting started
Once your short-term rental is ready, list it on a platform. While listing is free, be aware of service fees covering host protection and customer support. Share high-quality photos, and maintain transparency, responsiveness, and professionalism to ensure success as a short-term rental host.
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