Niagara Vacation Rentals vs Yearly Leases
It’s no surprise that Niagara Vacation Rentals and B & B’s have been on the rise over the past few years. With companies like Airbnb, HomeAway, Booking.com, TripAdvisor and may others increasing in popularity, more tech savvy people are choosing to use these platforms as both hosts and vacationing guests and Businesses, for Business travel guests.
Despite the increase in Niagara Vacation Rentals Homes there remains skepticism, often media stories of Airbnb or VRBO rentals gone wrong. While these situations are very rare (perhaps .01% of all reservations – If that) and almost always due to ineffective screening processes, absentee check in processes and the widespread reach of the media reporting on them inevitably creates fear and slows down adoption. That’s why it is refreshing that some Council member’s in Niagara on the Lake said, “Niagara on the Lake Vacation Rentals, must really screen and monitor guests – because we’ve never had a complaint” This is truly because of thorough background and social media screening, greeting every check-in and weekend drive by between 11pm and 1am reduces the risk of such events as much as possible.
While it may not seem obvious, there are many reasons for this. The travellers coming into Niagara for a short period of time don’t usually spend too much time sitting at home. They are usually either visiting on business or out sightseeing. In contrast to long-term tenants, who on average will spend much more time per day living in the place. The next reason is that after each stay, a professional cleaner will work to make the home look and feel new for the next guest. In a long-term arrangement, many landlords leave regular cleaning up to tenants and are surprised at the end of the lease at the state of the property. Finally, Niagara on the Lake Vacation Rentals take security deposits from travellers in the case of damages. The result is that guests often take pre-caution and treat the home with extra care.
Perhaps the biggest surprise for first time hosts is the increased income generated from their homes. Even in the seasonal Canadian market, it is not uncommon for short-terms rentals to earn two or three times as much income than a traditional yearly lease.
In a place like Niagara-on-the-Lake a three-bedroom home would typically rent for around $2,000 per month or $24,000 annually. Assuming an average of 30 days a month, that comes to just $66 a night. On the short-term rental market, that same home may go for an average of $500 to 600 per night it is rented throughout the year. Assuming an occupancy rate of 150 nights the average nightly income would amount to $82,500 – approximately three times what the home would be earning on the long-term market. Given these numbers, it’s no surprise increasingly people are buying properties as retirement investments, or investments in general with the long-term focus of retiring here.
Use and Access to your property
One underrated benefit of renting on the short-term rental market is the greater access you have to your own home. You can use the property from time to time and check-in on the property. But even better, you can book your own home on any given weekend or longer for your own holiday.
No Nightmare Tenants
The bad ones can be complete nightmares. They pay their rent late, smoke in the home, and have fights in the middle of the night. The problem with bad tenants is the process of evicting them can be even more of a hassle than dealing with the issues they present. In a short-term rental, even if you pre-screen a tenant and they turn out to be less than ideal, you have the comfort of knowing it won’t be long before they are gone. With the public review systems in place, risk-averse hosts can almost eliminate their odds of this kind of guest by only accepting those who have consistently demonstrated they are great to host.
How We help
The major downside to short term rentals compared to yearly leases is the increased amount of work involved. Constantly replying to guest inquiries, cleaning, ongoing guest communication, check-in, and lockout support are just a few of the responsibilities of Niagara on the Lake Vacation Rentals – That’s why we created a personal full-service short-term rental manager program that allows you the peace of mind.
If a Short Term Rental in Niagara on the Lake, Toronto or Niagara Falls is something you are considering visit our sites contact us page.