If you have a property you’re considering renting or looking to buy a property for short-term rentals, you’ll want to read our guide to starting an Airbnb business in Toronto. Renting out your property on Airbnb allows you to sit on a property as it gains value without paying a monthly mortgage. Suppose you own a second home but don’t use it often. Using it as an Airbnb is a very effective way to earn more income. We will let you know the ins and outs regarding how to start an Airbnb business in Toronto.
The good thing is that Toronto is a viable market as Canada’s largest city and a top destination. It’s a busy city with plenty of culture and allure for travellers coming for tourism and business. There are about 43 million tourists every year. The opportunity to make money on an Airbnb property is there as long as you know how to get it going properly from the beginning. This includes market analysis, what guests are willing to pay, and what they want from their stay. Below are the crucial steps to ensure a thriving Airbnb in Toronto.
Don’t forget to familiarize yourself with Airbnb tax obligations in Toronto, which are crucial to ensure a smooth and lawful operation of your new venture – you can find more details in our article ‘What you need to know about Airbnb taxes in Toronto.’
Know the Airbnb Laws in Toronto
Step one of starting an Airbnb business in Toronto is knowing the required laws and regulations. You’ll want to familiarize yourself with very specific laws in Toronto before considering an ad. Your Airbnb property must be listed as your principal residence.
You can’t rent out your home all year. The maximum number of nights you can rent out per year is 180. Also, if you rent out your home for less than 28 consecutive days, you must pay the Municipal Accommodation Tax, which is 4%. If you don’t follow the regulations and you’re caught, you can face fines of up to $10,000.
As you begin your Airbnb business in Toronto, it’s essential to understand the ‘Short Term Rental Regulations in the City of Toronto‘ to operate within the legal framework and ensure a hassle-free venture – dive into our guide on the subject for more comprehensive details.
Consider Your Location
If you already have a home you would like to do short-term rentals with on Airbnb, is it in a location where a visitor would prefer to stay? People coming to Toronto want to be nearby to the action, which usually means as close to the city center as possible. Some may also want a property near the airport or public transit. Before spending money on an Airbnb property, determine if guests are willing to live in your area.
Create a Welcoming Environment
How to start an Airbnb business means creating a comfortable environment for guests. You want your property to have elegant furnishings and decor for your guests. This means investing in high-quality furniture if you don’t already have some of it. Your home should be clean and well-maintained. Guests expect a full kitchen, an office desk and chair, and well-functioning WiFi. These amenities can increase bookings and potentially higher nightly rates.
Post an Irresistible Listing
Your listing is one of the most significant things regarding starting. This is the most significant advertising you’ll do, so pay attention. If you don’t have the skills to create the best listing, get a professional to do this. You want to be honest in your description and have at least 300 words in your listing. It should stand out, so you want to consider your property’s highlights. Include information like:
- Neighbourhood
- Unique features
- Location in the city
- Nearby attractions
You want to write a compelling advertisement so potential guests understand what it feels like to stay in your Airbnb. Make sure to have professional-looking photos that showcase your home’s best parts. If your images are professional and look great, your bookings can increase by 40%. You can also make more money per night.
Set the Right Rate
Setting the right price is essential if you want a high occupancy rate. You might think offering a low rate will attract more guests, but this isn’t necessarily true. People may assume there’s a negative reason for underselling and think it’s too good to be true. You can look at other properties of the same type in your area to get an idea of how much you should charge per night. Some experts analyze how much guests are willing to pay and when to increase or decrease the price. You may consider having a Toronto Airbnb management company help you with pricing.
Respect Reviews
From the get-go, you want to remember Airbnb reviews. Airbnb is popular because of this. Guests create reviews after their stay, so your nightly stays will increase when you get consistently good reviews. Even if there’s a negative review, there’s a way to manage it. Thank everyone for their great reviews, but address any negative reviews so readers get the full picture. Always be respectful and kind no matter the feedback you’re dealing with.
Managing Your Property
There are many moving parts to starting an Airbnb business in Toronto. Once you start bringing in guests, you must ensure everything is in place so it runs smoothly. Do you have the cleaning supplies you need? Have you hired cleaners that show up regularly? Do you have a system to record income and expenses? If there are things you’re not familiar with or don’t want to do yourself, you may want to consider outsourcing. Whatever you do, ensure everything is in place before listing your property.
As you take the first steps in your Airbnb journey in Toronto, a key aspect to remember is pricing strategy; for a deeper understanding, consider our ‘Guide To Your Toronto Airbnb Price Optimization Strategy‘ to maximize your earning potential.