Airbnb / short-term rental income
Project net STR income realistically — average daily rate, achievable occupancy, platform fees, optional property management, and utilities.
Your scenario
Result
Most major Canadian cities have STR restrictions. Check the bylaw before committing to STR vs long-term rental.
Short-term rental income — realistic projections
Airbnb and other short-term rental (STR) platforms can outperform long-term rental income on a per-night basis, but realistic projection requires honest assumptions about occupancy, platform fees, cleaning, utilities, and turnover costs. Many would-be hosts overestimate occupancy by 20–30 percentage points and forget management fees entirely.
What occupancy can you actually achieve?
Canadian STR occupancy varies by market:
- Tourism-heavy markets (Banff, Whistler, Mont-Tremblant, downtown Toronto/Vancouver/Montreal): 60–80% annual occupancy is achievable for top-quartile listings
- Mid-tier urban (Calgary, Ottawa, Halifax, Quebec City): 45–65% with strong amenities and pricing strategy
- Small towns / outskirts: 30–50% with seasonal swings
Check AirDNA or Mashvisor for actual market data before underwriting a deal.
Canadian STR regulations to check first
- Toronto: principal residence only, max 180 nights/year non-occupied (host must live there)
- Vancouver: principal residence only, business licence required
- Montreal: requires CITQ classification, certain boroughs restricted
- Quebec province-wide: registration with Quebec government required
- British Columbia (2024+): provincial principal residence requirement in most municipalities
- Calgary, Ottawa, Halifax: licensing required but rules currently less restrictive
Most Canadian major cities now treat non-principal-residence STR as commercial use, requiring rezoning that's often unavailable. Confirm the rules in your specific city before buying.
Tax treatment
- STR income is reported on your tax return as business income (not just rental income), often on Form T2125
- You can deduct mortgage interest, property tax, insurance, utilities, supplies, platform fees, management fees, cleaning, repairs, and depreciation (CCA) — but be careful with CCA on residential rentals (triggers recapture at sale)
- GST/HST registration: if your STR revenue exceeds $30,000 in any 4-quarter window, you must register and charge GST/HST
- Principal residence exemption: using your home for STR can partially disqualify it from the principal residence exemption — material STR use triggers a deemed disposition
STR vs long-term rental decision
Run the comparison before committing. Long-term rental advantages: predictable income, no turnover, lower management overhead, longer principal residence exemption, easier mortgage financing. STR advantages: higher gross per-night, more flexibility (block dates for personal use), no tenant-rights complications. The right answer depends on your market, time availability, and tolerance for operational complexity.
Operating cost realism
- Platform fees: Airbnb host fee 3–14.2%; VRBO 5–10%; Booking.com 12–15%
- Property management: 15–25% of revenue if outsourced; cleaning + linen handling separate
- Utilities: 30–60% higher than long-term rental due to constant temperature, high water/laundry use
- Restocking + supplies: $30–$80 per turnover (toiletries, paper, etc.)
- Insurance: regular landlord insurance doesn't cover STR; need short-term rental rider — adds $400–$1,200/year