More and more real estate investors are looking at the Short Term Rental (STR) market especially with the rise of platforms like Airbnb and Vrbo. Well managed Short Term Rental (STR) properties can provide excellent cash flow compared to traditional monthly rental residential properties and excellent appreciation prospects over time. A short term rental is a furnished home or cottage that is rented out for short periods of time, less than 30 days. One of the most popular types of short term rental is a lakefront or lake view cottage. A STR can provide you with additional income to help pay your mortgage, taxes, and other carrying costs associated with owning a cottage. A well thought out, managed and marketed STR and can also provide excellent cash flow (revenue). In addition, STRs have the potential to appreciate in value over time, providing you with a solid investment.
However, before you invest in a short-term rental property, it's important to understand the regional zoning rules and provincial laws that could affect your plans. For example, in all Canadian provinces there are strict rules governing STRs. If you're considering buying a lakefront property to rent out, you need to make sure it's zoned for that kind of activity by the municipality. Similarly, many municipalities have bylaws that limit the number of days a property can be rented out, the size of property the house or cottage is on and the size of the building itself, among many other criteria.Municipalities are becoming stricter and stricter when it comes to short term rentals so it's important to do your research and work with a real estate broker that is experienced in these types of properties and transactions. You will want your specialized broker to also be familiar with the regions you are considering investing in as each municipality has its own zoning rules and bylaws. Be confident that your short term rental investment is on solid ground and avoid costly surprises down the road by calling us now.