Becoming an Airbnb host and renting out all or a portion of your house, condo, or seasonal property is an attractive way to earn extra income. But simply listing your property on Airbnb or any home-sharing website, such as VRBO, isn’t a guaranteed path to success.
Public health restrictions designed to reduce the spread of COVID-19 may be relaxing in some provinces. That may entice property owners to jump in (or jump back in) to the private short-term rental market. But there are potential pitfalls of which to be wary.
According to the Hotel Association of Canada, only 17% of Airbnb’s total revenue in Canada is generated by what it calls “true home-sharing”, where the owner is present during the guest’s stay. Approximately 80% comes from hosts renting their entire homes where the owner is not present. Meanwhile, a 2019 McGill University study finds almost 50% of all Airbnb revenue was generated by commercial operators that manage multiple listings. In addition, nearly half (46%) of all active Airbnb listings in Canada are in Montreal, Toronto, and Vancouver.