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Landlords under pressure over short-term rentals

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Canadian Realestate Magazine | 12 Mar 2015, 09:47 AM Agree 0
All landlords are catching on to the benefits of shorter leases, but a trend towards high frequency turnovers is raising calls for a crackdown.

  • | 12 Mar 2015, 12:14 PM Agree 0
    Short term rentals are not very lucrative in terms of returns because vacancy rates are high and landlords must invest in the upkeep of furnishings. Landlords can expect a furnished suite to be vacant at least 1 month per year. So even when you hear an investor getting hundreds per night, you also need to take into account that their unit is vacant about 30% of the time, High rates are only available 3 months out of the year, the owner pays utilities and for furniture and the owner spends a lot more time managing their unit and tenants. The real advantage is the caliber of tenants, at least in newer condos. Short term tenants are extremely responsible and more respectful and owners have greater invested interest to ensure good tenants because they have invested normally thousands of dollars in the furnishings and decor of their units.
  • Jon | 14 Mar 2015, 09:47 AM Agree 0
    -investors considering short term rentals should first check with their condo board. Many condo complexes now require a one year lease due to the extra wear and tear and expenses short term leases cause.

    In addition MPAC, might reassess the condo as "commercial" (a MUCH higher property tax rate) if the condo is being used essentially as a hotel.

    Do your homework first.
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