Considering a short term rental property?

What are the advantages of buying a short-term rental property?

We’re glad you asked! As always, our team of experts here at Harbourview District are here to answer your most frequently-asked questions. Read on to learn if short-term rental properties are good investments, what to know about short-term rentals, and how short-term rentals, done right, can increase your income.

Short-Term Rentals as a Real Estate Investment

The short-term rental market is a hot commodity in 2021 and beyond: with vacation rentals in particular being viewed as a good return on investment, being a short-term rental investor is on the up and up. However, we here at Harbourview District always recommend you check municipal bylaws to ensure you understand possible restrictions. 

Here are some of the reasons why short-term rentals are advocated for in the majority of real estate investing guides and are seen as a core component of any up-to-date estate investment strategy:

  • A higher-than-average rental income: Versus long-term rentals, short-term rental properties can capitalize on seasonality and the fact that more and more travelers are now opting to stay in individually-run short-term rentals instead of searching for vacation rentals on common platforms like Airbnb and VRBO. This is because, on average, individually-run short-term rentals are cheaper and impose less restrictions.
  • Flexibility in both property pricing and use: As a short-term rental host, you have the flexibility to set your pricing and usage guidelines at your leisure. Hosts often take into account the general housing market, type of property, the prices of competing Airbnb-style rentals, and other additional factors like cleaning costs and accounting costs to set their daily rate; similarly, restrictions on use commonly include a ban on types of guests, a limit on excessive guests, and an average occupancy rate. 
  • Improved control over your investment property and operating expenses: Versus long-term rentals, one of the biggest advantages of opting for a short-term rental is improved control over your investment property. This includes cutting down on annual expenses by having the ability to go in and conduct necessary maintenance and insurance renewal every 3-6 months.

How to Evaluate a Short-Term Rental

To best evaluate a short-term rental and provide yourself with a competitive analysis in order to provide the best pricing, it is vital to compare both the local economy and the location’s appeal to tourists.

While the importance of “location, location, location” rings particularly true for short-term rentals being used as vacation residences, examining the local economy provides you with insight regarding if you can afford to consistently rent out your property or if it will look like your marketing strategy has to orbit around the spring and summer only.

Ways to do this include tallying surrounding amenities, ensuring that the local area has strong transportation options, and seeing which statistics you can draw from regarding the average amount of tourist visitation per season.

Why the Vacation Rental Market is Primed for Short-Term Rentals…

Harbourview District offers  a superior investment approach thanks to our stunning location, convenient amenities, and appeal to both families and downsizers: just minutes from Nanaimo’s downtown core, an abundance of entertainment lies at your property’s doorstep in the form of our recently re-imagined Commercial Street; the Port Place Shopping Center, a one-stop-shop for eye care, medical, banking, hearing services, and groceries; the Network Hub, a trending co-working space for entrepreneurs as an ideal workspace; and cozy pit-stops like the cafes Gabriels and Vault.

Our scenic master-planned community also touts easy access to Island Highway, Vancouver Island’s main highway, a 15-minute walk to both access Harbour Air and drive to hiking-and-biking trails, and a one-and-a-half hour’s drive to the vacation destination Mt. Washington Alpine Resort. 

Being developed by Parkshore Projects, Harbourview District proudly ties the hub of downtown Nanaimo to the natural coastal joys of the surrounding area. Over the next five years, Parkshore has signed on to create 280 homes, all of which are to be made up of multiple mid-rise condo buildings overlooking our coveted sea-to-sky views.

Have Any Further Questions Surrounding Buying a Short-Term Rental Property? The Harbourview District Team is Here to Help

Whether you are seeking advice on corporate rentals, general estate investing tips for the west coast, reliable estate investment tools, or insight into how Harbourview District can provide viable short-term rentals for attractive investment metrics, our team of experts are here to help you with a comprehensive analysis.

Please don’t hesitate to contact us or register for our informational newsletter today. Our presentation center is also open by appointment for those who would like to take a tour of our community. We look forward to hearing from you!