For starters, this depends on the goals you have for your property and what kind of flexibility you’d like. Airbnb has grown in popularity, but that doesn’t mean the long-term model for rentals in Calgary doesn’t have many bonuses either. To help you figure out what’s right for you, we’ve compiled the pros and con’s so you can make an informed decision for your income property.
Understanding Long-Term Rentals in Calgary vs Using Airbnb
The Advantages of Renting Out Your Property
Let’s talk rental income. For starters, opening up your property to tenants looking to stick around for a while means dependability. You don’t need to cross your fingers that someone will book your property for a few weeks. The expectation should be for your rent to come in every month (ideally) at an expected and agreed-upon rate.
Also, knowing how long your tenants will be staying in your rental property can give you peace of mind and a stronger ability to plan. The other advantage is the ability to hire a licensed property management company. A huge bonus is having a licensed expert comfortable with the rights and regulations of owning an income property. You can be hands-off and not carry the stress of property maintenance or communication with your tenants.
Speaking of maintenance, you have less wear and tear on your property. With Airbnb, you have more guests in and out of your doors, which can make maintenance more frequent, but we’ll get to this later.
The Disadvantages of Renting Out Your Property
A disadvantage to the long-term rental model is that you don’t get to use the property. Some owners would like to use their property randomly throughout the year, and with long-term tenants, that wouldn’t be an option for obvious reasons. For long-term rentals in Calgary, think of dependability but less flexibility.
The Advantages of Using Airbnb
There’s a reason buyers are running to put in an offer on good Airbnb properties. However, that still doesn’t mean they don’t come with their own baggage.
First, let’s start with the pros. The Airbnb model allows you to decide the nightly cost for guests. You can change that cost for whatever days you choose and for whatever season. For example, Airbnb owners can increase their nightly fee during peak seasons or if a special concert is in town and you have a good location. (think Stampede). That can have a huge positive impact on the income your property brings every month.
A common misconception is that fees eat up your payouts. However, if you’ve booked an Airbnb before, you’d know that the guest, not the host, covers these costs and adds to your nightly price. You can only accept guests rated five stars from other hosts and only accept bookings that have submitted government-issued ID. While this is more thorough than property management in Calgary vetting tenants and interviewing references, you can still rest easy knowing you have proof of identification.
You can also block off certain weeks so guests can’t book your property. Need to host out-of-town family members? You have a place that you can use. Have some friends that need a place to crash for a few days? You have a place for them. Need to get away? Visit your property for as long as you need it.
The Disadvantages of Using Airbnb
Now, as for the cons. We touched on it above, but Airbnb can potentially be less dependable when generating income. Only some properties are vacation rentals, so you need an eye for what’s in demand. Airbnb’s are also furnished properties, so consider this an extra expense. You also need to ensure you can handle the in-between cleanings. While hosts typically charge a cleaning fee to guests, you or a paid cleaner would still need to take this on. It’s a hassle, but owners still consider the higher monthly payouts worth the legwork.
As you can see, there are pros and cons to both models. It depends on the flexibility you’d like to have and if you’d prefer a licensed property management company to handle the stresses of an income property.
At Unison Realty Group Ltd, we take care of your property and conduct thorough screenings to ensure your property has quality tenants. We’ll handle what you don’t want, and you’ll enjoy the benefits.
For any questions or inquiries, please contact us:
Phone: (403) 219-3000
Email: [email protected]