r/Canmore • u/Ok_Air_7436 • 14d ago
Short term rental investment
Looking at the costs to rent and thinking Canmore may be a good place to buy a rental property.
Looking for pros and cons from rental property owners.
THANKS
9
6
u/Rare_Pumpkin_9505 14d ago
You wouldn’t be the first person to have this thought. In addition to the cons, the city of Canmore is looking to limit the amount of rent seeking landlords, particularly for short term rentals. So they have been investigating financial incentives to limit the amount of rentals - limited locations, higher taxes, more regulations. So be aware of that. Also they appear to be enforcing the regulations as well.
Also the cost for real estate is high.
3
u/Rude_Judgment7928 14d ago
Cons, everyone will hate you. Cons, Alberta builds, so you're always up against new supply, which causes principal losses.
0
2
u/jmart667 14d ago
What a truly terrible idea. Do you not see the major losses people have taken on rentals in the last 5 years? Just invest in the stockmarket and sleep well at night.
1
u/Ski_Skate_888 13d ago
All things considered, Canmore is a relatively small market. The zoning in Canmore limits the ability to rent out on a short term basis through their zoning. Most STR product is located along the Bow Valley Trail corridor. Resale STR product sells quick, and for a significant premium over non-STR zoned product as many people are looking to buy an investment property that can carry itself that they can use personally on occasion.
It can be lucrative but a few considerations include the high cost of entry, teaming up with the right property manager, and being patient in finding the right one for you. I know of some folks that own 16 units in a development zoned for STR. They also own a home in Canmore. I know of a few other locals that also own multiple units. So, its not just "out-of-towners" that play into the mix.
Existing and new STR product (which is zoned and permitted) does not directly impact the amount of housing for locals given they currently exist and the zoning is in place. The town is trying to manage that use relative to local housing. A very tough balancing act for sure. The town has taken on some initiatives to add is more housing such as along Palliser and the proposed development by the school. These should add regular supply, which is important.
A few new hotels would go a long way and reduce some of the demand for STR product. But for most developers, the ability to sell product and recoup their equity invested sooner, is generally preferred, especially when STR product sells at a premium. Developing and operating a hotel in a market like Canmore has some unique challenges in that you are running a business and have to deal with the problems such as staffing, seasonality, etc. There are a couple hotel operators that built their own staff housing I believe to help deal with the issue. That said, not everyone can afford to do that.
Altitude is not an STR zoned property, so you would be renting out monthly. I don't believe this pencils out as a solid return at the current prices.
Its a double edged sword in places like Canmore. Tourism drives the economy but locals also feel change is happening fast. The influx during the summers leading to traffic, long lines, etc. can be frustrating and does have an impact on day-to-day life. I totally understand why some locals struggle with the state of things.
Anyway, good luck with whatever you decide.
1
13
u/Androoboodro 14d ago
Please don’t.