The Pros and Cons of Owning an Investment Property in Canmore
Canmore is a growing market. Over the past three years the short term rental property value has increased a great amount. Now that we have over come COVID 19 we are seeing a lot more tourism in the town of Canmore. This is beneficial to the short term rental industry. With that being said, lets dive into the Pros and Cons of Owning an Investment Property in Canmore!
Pros of Owning an Investment Property in Canmore
Passive income
When you purchase an investment property in Canmore for the purposes of generating revenue you will want to consider the difference in a 1 bedroom unit up to a 4+ bedroom unit. The Airbnb rule of thumb is “heads and beds”. Meaning the more beds and people you can sleep the more rental income your unit will generate. If your wondering how much your investment property could potentially generate please visit Elk And Owl Mountain Retreats Property Management for a free revenue estimate.
You get to use the Investment Property as much as you’d like
The best part about owning a short term investment property is that you get to use it whenever you’d like. Owning a vacation home in Canmore gives your family and friends the opportunity to enjoy the beautiful Rocky Mountains without having to worry about booking an accommodation. Think about it, you buy a property that generates revenue to pay the bills and you also get to use it whenever you’d like while it appreciates in value! What more could you ask for!
Property Appreciation
Canmore as result of the attraction it gets from people all over the world is constantly growing. We have seen significant growth in demand for short term investment properties. This has lead to the increase in market value year over year. Unlike other markets, Canmore is very unique. It is the only place in Alberta’s Rocky Mountains where you can own a Short Term Rental Property. For more information on Canmore’s Short Term Investment Properties visit Canmorearealiving.ca.
Cons of Owning an Investment Property in Canmore
Managing the unit remotely with out a property manager can be stressful
If your investing in Canmore without a property manager, managing the unit can be very stressful. Striving for five star reviews is the single most important thing for a successful short term rental. This requires elements such as hands on managing, dynamic pricing and exceptional cleaning services. In most cases people will find they generate a stronger return on investment while using a property manager. This is a direct reflection of the importance of consistently being on top of all aspects of management. Things such as maintenance, guest communication, cleaning and physical unit check-ups can be a few examples of difficulties when managing yourself. To learn more about property management with Elk and Owl please visit our website.
Keeping up with maintenance including ware and tare on the unit
Owning a short term rental comes with maintenance including ware and tare on the unit. With having multiple guests stay in the unit all year long, things tend to break and need attention. This happens in all short term rentals. However, by doing two deep cleans a year and having a handyman on call it has helped us catch issues before they become bigger problems. This can be an example of the importance of having a property manager who has the connections to resolve issues when they do arise.
The initial investment
Purchasing a short term rental property can be a lot of money upfront to get started. If you plan to finance your property you’ll need a minimum of 20% as a down payment. It is possible you will need to fully furnish, stock or replace existing furniture. Having everything the guest needs is crucial and can be overlooked by inexperience. Connecting with your financial advisor is a great initial step you can take in preparation to purchasing a short term investment property.
Contact us for more information or if you have any general questions about short term rentals!
Visit our blog for Airbnb Must Haves For Success to get an idea of what it takes to own a successful Airbnb
