Is the Airbnb Business Profitable in Canada?
Airbnb has become the go-to option for world tourists and travelers wanting to rent a homey, cozy, and affordable place. Until now, more than four million hosts in almost every country all around the world are using the Airbnb platform and have welcomed nearly one billion guests. According to research by the low-interest lender Earnest, Airbnb hosts make an average monthly income of about $924. This income can, of course, be somewhat different depending on where you are located, how often you rent out your place, the quality of your home, and the services you offer. But could running an Airbnb business be profitable in every country? What about Canada? Is it a good idea to become an Airbnb host in Canada? Is Hosting an Airbnb in Canada profitable? Well, the short answer is YES!
To be more detailed, we have to say thanks to rising customer prices; starting an Airbnb business in Canada has become a great business opportunity and a way to improve earnings and help with bills. According to Airbnb’s data, new Airbnb hosts in Canada have earned $6 billion in revenue since the COVID outbreak began. As of the 30th of April 2021, the average annual profit of a host was $9,600. This money has helped many Airbnb hosts in Canada pay their bills, renovate their homes, pay for their own vacations, and more. Compared to the year-over-year increase in the Consumer Price Index in Canada, which reached 4.8% in December 2021, this increase in income is significant. However, it’s profitable to run a hosting business in Canada; it also has some rules and restrictions that every host has to follow.
Airbnb rules in Canada
Every municipality in Canada has its own set of rental property rules, which includes a specific set of operational standards. If you’re about to start hosting an Airbnb in Canada or you’ve decided to buy a property and list it on Airbnb, don’t forget to ask about the relevant legislation. However, the rules can be different from city to city, but these are three main ones:
Host permit license: Every city or municipality has its own licensing requirements, and you’ll need to comply with those to be able to get your own license and run an Airbnb. You can’t host an Airbnb in Canada without acquiring this license.
Zoning rules: Many municipalities have passed zoning bylaws that protect residential neighborhoods by specifying where vacation rentals, like Airbnb, are permitted and where they are not.
Extra permission is needed for condo owners: Condo owners must get permission from their condo association or syndicate before renting out their property on a short-term basis. Similarly, renters will be required to get approval from their property owners.
The best Canadian cities for Hosting an Airbnb in Canada
Assuming you’ve finally decided to take the leap and buy an Airbnb property in Canada, but you aren’t sure which city would be the best place to Host an Airbnb in Canada, we’re going to list the top five cities for Airbnb hosting in Canada.
Canmore is a small city in Alberta located in the foothills of the Rocky Mountains. Twenty minutes east of the world-famous Banff National Park, this beautiful spot is an outdoor enthusiast’s paradise. Over 2.5 million annual tourists to Banff National Park pass through or near Canmore, a town of about 14,000 citizens. This beautiful area is ideal for those who host Airbnb. Canmore’s zoning rules and restrictions are the main concerns of those who run Airbnb businesses there. According to the Town of Canmore, Airbnb units can only be located in the industry, and mixed-use sections, causing tourist accommodations to be not allowed in most residential zones.
Located in British Columbia, to the north of Vancouver, Whistler is a beautiful mountain town and popular ski resort. Approximately 2.7 million people visit Whistler each year, spending over $1.5 billion, making it a popular destination for thrill-seekers. Commercially, suppose you want to rent out an Airbnb in Whistler. In that case, you must follow the rules established by the Resort Municipality of Whistler’s Tourist Accommodation Regulation Bylaw. By this law, owners of rental properties are obligated to use the services of a property management company that carries the appropriate licenses and has acquired an accommodation business license from the government on their own. The town of Whistler has tight zoning restrictions that prevent homeowners from advertising vacation rentals in residential areas.
It’s no secret that Montréal, one of the main urban centers in Quebec, is the destination of many Canadians and foreigners. More than 29 million visitors, including More than 11.1 million tourists, come to Montréal yearly for either leisure or business purposes. Montréal is a tourist’s paradise thanks to its various attractions, including more than 40 international museums and more than 4,900 acres of city parks. So it’s one of the best cities you can build a successful Airbnb business in it. Airbnb provides a localized website for several cities and towns, including Montréal. This page details how to run an Airbnb in the city legally. Examples of such mandated regulations include:
- Certification of registration and classification
- business license
- Obey zoning regulations
- Taxes on sales in Quebec
Canada’s capital city, Ottawa, is located on the southern bank of the Ottawa River. Ottawa, the country’s cultural and historical center, attracts tourists from all over the world. Ottawa is an excellent place for an Airbnb host in Canada because it attracts over 11 million visitors annually who spend over $2.2 billion in the city. The Short-Term Rental By-law in Ottawa is the primary piece of legislation that hosts must adhere to. If the home is used as a “cottage rental,” a special license is required.
Victoria, the capital of British Columbia, is a city full of beautiful buildings and outstanding tourist attractions. Thanks to the city’s over 2,100 annual hours of sunshine; Victoria is a fantastic place tourists can visit any time of the year. Airbnb hosts in Victoria, British Columbia, must get a Short-Term Rental Business License and adhere to the city’s short-term rental operating regulations to legally rent their homes.
As you read, there is nothing unusual about Hosting an Airbnb in Canada. Airbnb is operational in Canadian cities the same way in every city in the world. As an Airbnb host in Canada, you can list your rental property on Airbnb and use the benefits of the services and visibility on their website, and in exchange for these perks, Airbnb will charge you a commission fee on reservations made through their platform. This feature allows new hosts to get their feet wet with fewer difficulties. In addition, Airbnb Canada’s customer service is available around the clock to respond to hosts’ concerns and fix their problems. So, there is nothing to be afraid of or want to give up because of it. by the way, if you’re considering joining the Airbnb hosts community, this article will help you on this new path!
Have you had any experience in hosting an Airbnb in Canada? We would appreciate it if you could write about your related experiences and questions in the comment below.