Short-term rentals in Ontario cottage country

[Renee McGrady]

Hi everyone,

I’m exploring short term rentals in Ontario cottage country, within about 2-3 hours from the GTA for my first rental property. There seem to be some deals in 4 season cottages that would be cash positive if rented short term on Air BNB or VRBO. Would be more work but could be worth it for a few years to get into the market.

A very high level example:  

600,000 purchase price (or 550 + 50 reno)

20% down (120K)

Mortgage for 480K, 30 yr @ 2.99 = $2016/mo

Let’s say total monthly expenses are $2800

2800 x 12 = 33,600 annual operating expense

150/night x 365 = 54,750 (150 avg, higher in summer, lower in off season)

• 15% vacancy (8,212.50)

= 46,537.50 - 33,600

= 12,937.50 annual profit or 1000+/month 

Who is having success with this? What areas are best for 4 seasons? Can anyone recommend realtors or property management that specialize in short term vacation rentals? Anything I’m missing here??

Really looking forward to hearing from those of you making it work in Ontario’s market.

Thanks in advance,

Renee