Short Term or Long Term Rental - A landlord's dilemma | Property Management Tips

The most common question we receive from our clients is whether they should rent their property long term or offer it as a short-term rental, such as on Airbnb. This can be a challenging decision, and several  factors must be considered when making this choice. Read more to gain crucial property management tips from All Property Services.

Long-Term Rentals | Property Management

When renting long-term, it is essential to consider several factors to ensure you get the best possible  tenants and minimize risks as a landlord. These include tenant acquisition, screening, and verification. In  Ontario, both landlords and tenants must adhere to the Residential Tenancies Act and interact with the  Landlord and Tenant Board to address issues such as non-payment of rent, evictions, and rent increases.  Additionally, landlords should be aware of potential wait times for resolving these matters if any disputes  arise. 

Short-Term Rentals | Property Management

Some clients have homes in areas not suitable for hosting an Airbnb but are still interested in entering  the short-term rental market. However, some properties are more conducive to hosting an Airbnb than  others. For example, downtown Toronto is considered an ideal location as it offers various highlights  within the city, such as major attractions like the CN Tower, Royal Ontario Museum, and Eaton Centre.  There is also a vast amount of nightlife, restaurant, and entertainment options for those looking to  experience what Toronto has to offer. 

Other suitable areas for Airbnb hosting include locations with bodies of water, such as the beaches,  Scarborough Bluffs, Pickering Lake, Lake Wilcox in Richmond Hill, and as we go north of the city, Lake  Simcoe and the Kawartha Lakes. These locations are great for those who prefer a more relaxing  environment with access to the lakefront, parks, trails, and nature. 

Regulations and Considerations 

Toronto (GTA) Airbnb is a significant player in the city's hospitality and tourism sector. However, the  government has developed guidelines and regulations for those entering the short-term rental industry.  For example, if you are considering using your condo as an Airbnb, it is vital to know if your condo  developer will allow Airbnb hosting in the building. Secondly, all short-term rentals must be registered  with the municipality in which they are located.

For instance, in Toronto, short-term rental is considered  a period of 28 consecutive days or less, and hosts are required to collect and remit a six percent (6%)  Municipal Accommodation Tax (MAT) on all rentals. https://www.toronto.ca/community people/housing-shelter/short-term-rentals/

Even after you have your registration in place, there are other considerations, such as the types of  services you will be offering. For example, will you request a minimum booking stay of two days, or will  you focus on 28-day stays? Then there is the upkeep of the Airbnb, such as cleaning, laundry, security,  and providing common household items like soaps and basic toiletries, as well as providing keys to each  new guest. 

Conclusion 

Deciding whether to rent your property long-term or as a short-term rental involves considering various  factors, including location, regulations, and the type of experience you want to offer your tenants or  guests. Both options have their benefits and challenges, so it is crucial to evaluate your specific situation  and goals before making a decision. At AllProperty Services, we pride ourselves on providing property  management services that give our clients peace of mind. Whether you choose Airbnb or long-term  property rental, we will be there every step of the way to offer services tailored to your personal  situation and circumstances as a property owner.