I am reaching out to get your opinion on hosting in Toronto. I have an available 1br that I'd like to turn into an Airbnb. The unit is really nice, it's in a 1 story building on top of a restaurant on Queen West and Shaw. My net expenses are $1450 a month. I can't say this is a luxury unit. It's spacious, clean with the best location possible. However, it's not a brand new condo. The decision I'm faced with right now is to spend a couple thousand dollars to pretty up the apartment and get it available for Jan 1st. The location is amazing, it's seconds away from Trinity Bellwoods.
Does anyone think I would have a hard time renting it out for $90 a day? It seems that this is the price to ask people to make this worthwhile.
How hot is the airbnb market in Toronto?
No parking, no laundry, no gym.
have you checked out the competition in your area?? Have you seen what they charge and is it worth your time to remodel your place. Will your condo association (if you have one) allow owners to Airbnb their place... Does anyone in your building or condo area have an Airbnb policy ??
those questions are just the start... wish you luck
@Hadi19 I am a new host in the eastern part of the City of Toronto (in Scarborough). I am too young in the market to give you any real life experience. I find it hopeful as I am booked up to the first week of January 2019.
According to an analytical tool, your location is very good in demand and has a very good potential for earning which is above your expectation. The rate varies which is low in winter and high in summer months.
In theory, you can expect high occupancy (about 75%) and good rate per night (over $100 per night average for 2 guests).
Being said that it all depends upon market and your availability.
Considering the location and you financial stake, it seems a viable project. But all depends upon many factors.
This is my two cents, if it helps.
If you live nearby and can do the cleaning, laundry, guest welcome etc then go for it. If you have a full time job elsewhere or are not local then I think it might be a struggle
it would be hard to get anyone to clean for less than $45 per turnover. Insurance is also $150ish month since no one covers STR. You are also responsible for all utilities, garbage and Internet.
So it might be very tight if you have to pay cleaner :( $1450 + 20x$45 = little profit
Buy used / ikea stuff and keep start up costs low.
To be honest, Airbnb works best in mother in law unit etc since you have no extra costs and are nearby to prevent damage and noise disturbance.
I have managed an Airbnb in your area. It’s extremely successful. The income potential can be great if you’re willing to be patient and give it some time. Build your reviews and work hard to ensure all those little details are taken care of will lead to a great guest experience and good potential income.
If you asked this question about the summer months I would say you might be ok. However, we struggle to get 80$ per night (January-April), we have condo right beside Eaton Centre, and we are superhosts that have over 140 reviews. I only mention the superhost thing and the amount of reviews, because having that track record made life easier for us, in terms of getting bookings. When we just started out we weren’t always lucky enough to get bookings. You also have assume you will have some periods where your unit is empty, in between bookings. I love airBnB, but it’s good that you are doing your homework before proceeding.
Hello Hadi, the location is popular and one bedrooms are highly sought after. With your largest expense being $1450 you can make quite a profit on this listing. I’m an experienced superhost with 7 of my own units and I manage 4 others. I would be happy to co-host with you to get your listing up and running!
I just want to thank everyone who left a comment here, all been very helpful. I'd like to give a little update. Few things changed since I panicked in the winter and sublet the place to a French couple for 6 months. However, I take the apartment back in July. The plan is that I will be moving in and living in the apartment. I will take July to make the place look amazing (with a reasonable budget as suggested above).
Once I'm ready, I will post the apartment on Airbnb for weekends and even weekdays. To begin I expect to not have a lot of requests since I'm a new host. I can sleep at my gf's place if I do get bookings.
I will then see how things go and the rate and amount of bookings I am able to secure. If it makes sense financially, I will turn the apartment into an Airbnb and move out somewhere else. If it doesn't make financial sense then I might as well just casually rent it out as I live there. I will have to live there so that part I'm not sure about. How I can live minimally to maintain a clean and fresh airbnb welcoming standard.
Any tips on how to live and rent an Airbnb are super welcomed. Thank you all.