May 7th, 2018 | Investors
Airbnb – Hassle or Worth It?
Airbnb and a Vacancy Tax – Newly Passed Rules Take Effect July 1, 2018
There are some new rules that will take into effect starting this summer and will have a great impact on Airbnb hosts. Let’s take a closer look.
- As a property owner, you will only be allowed to rent your primary home, but not secondary suites (like a basement apartment).
- Of your primary home, you will only be able to rent out 3 rooms maximum, if you are wanting to rent your whole home you will be allowed to do so for 180 nights or less during a 1-year cycle.
- This means secondary suites can’t be rented out by owners, but here is the sad surprise: Tenants can if it’s their primary residence!
- Hosts must pay a $50 annual fee, while short-term agencies pay 5K/yr + $1/night for each booking.
There are a few more rules, but here is our conclusion our government needs to be governed.
Now You May Ask: OK, But Is It Still Worth It?
Worth it if we consider areas with 100%+ growth opportunity in the city.
Hassle if you get irresponsible people and need to do repairs & upkeep. Short-term stays may be annoying as well as you get a higher turnover.
OUR OPINION
Yes IF:
- Lends itself well to Airbnb use
- You are a hard worker & can manage the ups & downs
No IF:
- If you are a Worrying Walter
- You simply don’t have the time/cycles to dedicate to the ups & downs
- You can’t be bothered
Other Seminar Notes:
Cash-flow vs Equity – Striking a balance
Preconstruction vs Resales – Benefits and Pitfalls
“Mini” or “Container” homes – Are they a thing?
Have you used Airbnb before? Let us know your thoughts on these new rules and discuss your next investment.
