If you want to start your short-term real estate business in Canada, Montreal is one of the best places to start. This city is located in Quebec and is the second largest in Canada. It is a significant economic, tourist, and industrial center where the country’s most prominent universities, natural attractions, and offices of major global companies are located. Let’s take a closer look at the features of the Airbnb business in Montreal, its advantages, and critical analytics indicators.
Top Benefits of Montreal for Airbnb Businesses
Montreal is a magnificent city, washed by the St. Lawrence and Ottawa rivers. There are many architectural, cultural, and natural monuments: a beautiful botanical garden, Notre Dame Cathedral, the city hall, the old port, the Montreal Museum of Fine Arts, etc.
It attracts tourists worldwide to the city, so short-term rentals are in great demand. At the same time, expensive hotels and budget apartments or B&Bs remain in demand.
Also, people often come to Montreal on business trips and to study, so you can adapt your Airbnb property to the needs of students and working people – equip your apartment with a workplace and connect high-speed Internet.
Of course, Montreal has a lot of short-term rental properties, and the competition is very high. However, by building a brilliant strategy and finding your target audience, you can create a profitable Airbnb business and earn a stable income.
Effective management is also essential. To improve its quality, you can use the services of services (for example, https://masterhost.ca/airbnb-management-montreal/) that will help you with the daily tasks of your business.
Summing up, we highlight the following advantages of opening an Airbnb business in Montreal:
- A large number of travelers are looking for accommodation to rent.
- A developed real estate market, where the housing of different price categories is presented.
- Developed infrastructure.
- Many attractions, educational institutions, and business centers.
It is also a plus that the real estate value in Montreal is growing steadily: even if you decide to sell your house or apartment later, you will earn money.
Key performance indicators for an Airbnb business in Montreal
To build a successful business strategy, you need to analyze the real estate market in this location. You should pay attention to the following basic indicators:
- Average daily rate: $126
- Occupancy Rate: 72%
- Revenue: $1,825
- Active Rentals: 8,425
It will help you set a competitive price for your listings and evaluate the payback period of your investment and potential revenue. And better understand your target audience and their needs. You can evaluate both annual and monthly averages to refine your business strategy.
Most rental properties in Montreal have detached one-bedroom homes with air conditioning, heating, and the Internet. But parking is available only in 28% of Airbnb properties.
Regulation of Airbnb business in Montreal
Under Montreal law, short-term rentals include renting out a home for up to 31 days for a fee. It applies to both primary and secondary real estate. However, there are some differences in the legislation regarding these two categories.
Please note that some areas may have restrictions on tourist rental properties. More information about this can be found in the special department for issuing permits for commercial activities. You will also need to obtain such permission and post it in a conspicuous place.
You should also ensure that your rental property complies with municipal health requirements. It is very important.
How to Get an Airbnb Business Permit in Montreal
Montreal is a city where business is developing rapidly. It is not difficult to obtain a business license here. It is essential to know that in the province of Quebec, where Montreal is located, there is a difference in the rules between Airbnb hosts who rent their own accommodation and those who live in the same house with guests.
If you want to start your Airbnb business in Montreal, here are the steps you need to follow:
- Get certified through CITQ. Detailed instructions on how to do this can be found on the Tourisme Québec website. You will also need to include your CITQ number on your listings. And also, place it in a conspicuous place in the house or apartment (except for the location of your residence).
- Obtain additional licenses. As we have already mentioned, some areas of the city have restrictions for Airbnb business. So it would help if you are looking for more information about permits for the area of Montreal where you are planning to buy property.
- Comply with zoning laws. Each municipality in Canada has its own zoning regulations, building densities, and urban development guidelines.
- Learn the specifics of taxation. Following Quebec law, a short-term rental business tax is levied on each housing rental for 6 hours and 31 days. Airbnb also charges an additional tax of 3.5% — keep it in mind when compiling the price list.
You will also need to follow other rules, such as the rules set by the condominium or homeownership. Be sure to read them before starting your business. For complete certainty, it is best to consult a real estate lawyer.
Conclusions
Montreal is a great location to start a successful Airbnb business. This place has beautiful architecture, many business centers, and educational institutions, which attract millions of tourists from all over the world. Property values are constantly rising here, and the demand for vacation rentals is fantastic.
It is also easy to register your business here: if your property complies with the local municipality’s rules, obtaining a business permit will be easy. At the same time, you can live with guests in the same house or rent a separate room.
Analyze competitors, find your growth points, identify strengths and build your profitable Airbnb business!