Business has changed considerably over the years, we are starting to see a trend from dominance of large corporations to what has been deemed a “sharing economy”. What does this mean exactly? Companies like Uber, Lyft, Airbnb and Zipcar have revolutionized selected industries by essentially deconstructing corporate ideas and allowing individuals to operate similar businesses on a much lesser scale.
In the real estate world short term accommodations are not a new phenomenon, however the creation of short term accommodation portals such as Airbnb, Vrbo and Cottages In Canada have created an influx of short term rental accommodations globally. With an emerging industry just like any there comes new rules and regulations which should be researched extensively by anyone looking to get into this market.
The most common issue and often the most costly is not doing the research on the township or region you intend to purchase in. Municipalities may have restrictions, licensing requirements, by-laws or may even prohibit the use of properties as short term accommodations. It is CRITICAL to extensively research these possible restrictions prior to purchasing.
Other common issues include but are not limited to: Condominium Corporation Restrictions, Insurance, Tax – both collecting HST on rentals and how it will affect the purchase and sale of the property and much much more.
The good news is The Kore Team is here to help. We own and operate several short term accommodation properties giving us not only the preliminary knowledge necessary when purchasing but also a first hand insight into what it takes to run an airbnb property successfully. If you have been thinking of investing in an income property and are contemplating the short term accommodation route give us a call or visit or Facebook page at https://www.facebook.com/kardosrealty/