Page 21 - Real Estate Now - November/December 2021

Should We Airbnb a Room in Our Home?

Joseph Czikk courtesy REALTOR.ca
ith the booming sharing economy
and travellers often preferring to
Wforgo traditional hotel stays, the
notion of renting out a room in your home (or
the entire house itself) could seem appealing.
But before you jump into peer-to-peer short-
term rentals, there are some things you should
consider:
Costs of hosting: starting up,
cleaning, higher utility bills and
more

Becoming an Airbnb host requires some startup
cash along with ongoing expenses. These
include the costs to set up and furnish the
space, ongoing utility and cleaning fees which
is usually not more than $30 per room.
You’ll want to make sure each guest space is attractive and has all the amenities that a weary traveller needs such
as fresh backup sheets and plenty of towels. A savvy host can reasonably furnish an empty room for about $1,000.
However, $500 can do the trick if you already have an extra bed. Big box stores can help supply furniture for a range
of pricing.

The upside of being a host is that if you work hard, possess excellent customer service skills and treat the platform like
your own personal business, the revenue generated from the listing can surpass the initial startup costs and provide
a nice monthly return.

Permissions
If your property is controlled by a homeowners’ association or co-op, check its rules to make sure you’re allowed to
host; some may restrict Airbnb activity, while others may have no issue. If you rent, you’ll want to get your landlord’s
blessing.
A proportion of Airbnb hosts could very well be renters, who may or may not be telling their landlord. It is recommended
to get your landlord’s approval through a signed agreement. In most Canadian provinces, tenants cannot rent out
their apartments without the approval of their landlords.
Airbnb Canada details here how tenants should go about this process.

Taxes and business licenses

Depending on where you live, you might require a business license and you might owe local taxes on any income
you earn.

Quebec law requires short-term rentals of less than 31 days to obtain a licence from Tourism Quebec. Vancouver has
proposed regulations that only allow the issuing of short-term rental licences for a primary residence — meaning the
host, whether owner or tenant, must live in the dwelling. This rule targets hosts with multiple investment properties
who operate as commercial hosts and eat into the housing stock.