As the tourism and accommodations industry evolves and re-invents itself the surge of Airbnbs has certainly broadened the options that travelers have for their accommodation needs. One question that seems to come up time and time again when working with Buyers who are considering purchasing a condominium is whether or not the condominium allows Airbnbs and what the short term rental market is like for resident investors.
These days many condo owners are traveling for work and while they are away for frequent or extended periods of time they want to recoup some of their fixed roof housing costs by offering out their condo on the Airbnb program or other similar programs. The rental period could be as short as one night or could be for longer than a month. This option has certainly cut into the market of furnished rentals by other long standing players in the short term accommodations business.
If you are thinking of purchasing a condominium you'll need to ensure that you ask the question as to whether or not Airbnbs are allowed as per the condominium by-laws, and if they are allowed are there any restrictions to the length of stay or other limits established by the condo corporation.
For instance, at The Avery www.theAvery.ca, short term rentals are allowed but the minimum rental period is one month - so essentially no overnight or rentals less than 30 days. In addition, there is specific paperwork that the Owner of the condominium must fill out and provide to the Property Manager. In other condo developments there are no Airbnb or short term restrictions at this point for owners such as Kings Wharf which has Airbnb rentals in the Anchorage, Keelson and Aqua Vista condo buildings.
I was recently in New York City and checked out https://www.timeout.com/newyork/hotels/coolest-airbnbs-in-new-york-city as a possibility for my stay. While I didn't choose to book an Airbnb for that trip the thought did cross my mind and made me think about several of my past clients who own condos and rent them out though Airbnb or similar programs.
Here are X tips when thinking about buying into a condominium building with thoughts of possibly renting it out in the future:
- Ask your REALTOR® to check the condo rules and by-laws to satisfy any questions you have with regards to permission as an owner to use your condo as an Airbnb or short term rental.
- Check with your insurance company to ensure you have adequate protection.
- Talk with your lawyer with regards to your intentions of having an Airbnb as part of the buying process.
As this option for accommodations is ever changing and cities across Canada are wrestling with how to deal with issues around taxation, tourism associations are dealing with this new competition in the marketplace and as this may be a consideration for you as you make your next purchase it is important to do your research in advance and be properly prepared.
If you are looking to find out what condominium buildings in HRM allow short term rentals including Airbnb email me at email@example.com and I'll get the answers for you.
Dale Cameron, Century 21 Trident Realty Ltd. www.HalifaxDartmouth.com 902.240.0768 firstname.lastname@example.org
* Not intended to solicit Buyers or Sellers currently under contract.