All Forum Posts by: Account Closed

I apologize for possible ignorance here, but has anyone seen the official details for the joint (federal and provincial) rent relief for commercial tenants?

The announcement was made on (if I'm remembering correctly) the 24th of April, but has there been any update regarding the actual process or official terms yet?

@Robert Newcombe will you be managing the STR yourself? It can be quite a bit work, which that's not to say it's a bad investment...but the reason I ask is that if you're thinking you'd like to hire a manager or management company you might consider calling around now. They'll probably be able to give you some really great tips and a rough idea of the numbers.

The advice on here has been spot on.

I manage a few STRs and have spoken with a number of people in a very similar situation (beachfront in NS, looking to Airbnb, plan to eventually retire there or use part-time) and sometimes they're really put off by the potential rent numbers vs initial investment cost (furnishing etc). If you're going the STR route definitely sort out your costs (including self or 3rd party management) before submitting your offer. It will be quite different from a regular long-term rental (even a furnished long term rental) because you'll be on-call, turning over & maintaining the property, plus a general increase in wear and tear.

STR can be a great investment in HRM and NS, even year round, but you need to have a real superstar plan/property or else you'll be losing out to other listings in the area.

I agree with @Julie McCoy , if it's a close connection you'll want to be careful with lawyers (agents, consultants, etc.). You can involve them if you feel safer that way, but know that you'll likely be changing the temperature of the deal slightly (may be worth it though, that's your call).

@Paul Mackay is right on both points regarding Airbnb. There has been a dramatic increase in listings, but if you keep your rental nice and kind of unique/stylish, it's likely not a bad investment idea.

The city/region has a major issue right now regarding hotel/short-term rental availability. There will definitely be new laws, but so far it looks like they're going to make it slightly easier in areas where it is not currently (rezoning as mentioned), they may even promote the process in some way, and there may actually be a housing regulatory overhaul in general that will affect all rentals (long and short-term (though that is quite a ways off)).

As with long-term rentals, there are plenty of "slumlords" on the Airbnb side. If you're putting in/ hiring someone to put in the work (about 10x the work of a long-term rental) and attention, I think you'll be rewarded by renters and supported by HRM.

Hi Chantele,

A vacancy is certainly far more common in SJ. I had one rental go 3 months there "at the beginning" and recently had two units in Halifax that were vacant for a couple months. 

Not saying that's ok, just saying that's been my experience lately. 

Uptown is looking really promising...but it might be a few years before it gets to where it should be.

The turnover would be a larger concern for me. If you're going vacant because they're looking for great tenants who stick around and take care of the space then wait is worth it. If you also have high turnover though...there's a problem somewhere (space, rate, management?). You sound pretty experienced though so you likely know that already.

Have they provided any explanation for your concerns? (I hate empty units too, but we're also pretty fussy and we end up with loyal long-term tenants so...that helps me sleep lol).

Contractors, I can't recommend anyone just yet...but I have a pretty major reno coming up on the east side, I'll let you know how that works out.

Welcome! Feel free to reach out with any questions or ideas. The BP'ers from HRM make up a small (but growing) section of the site, but we're always happy to help or swap "war stories".  

Hey @Jeremy Zwicker  

Currently, in Downtown Halifax or Dartmouth, I'd say yes.

I'm not certain of the market in Truro, but I do like this NSCC option in the slower months (I've done something similar with a spot near the Dartmouth Waterfront campus). Have you checked Airbnb and the listing calendars? If they look totally booked up (no open nights) that might be an indication they're currently off the market for the winter (draw your own conclusions).

My experience has been Truro is crazy expensive for Hotels (same as Halifax) relative to demand. I think you could do great. Keep in mind this is hardly a passive way to make money though. You'd need to stay on top of it or have a team/person that does so for you.

There is likely stricter regulation coming down the line as well. This may fall city by city, but be prepared for it if you're planning for the Vacation Rental route long term.

In the summer, it's a great source of income. You'll usually make far more than you would with a long-term tenant. There could even be the possibility of you keeping it empty in the winter if you do REALLY well, but I prefer to find winter tenants just to be safe. 

If you're considering the initial upfront investment to furnish the spot, I'd go ahead and give this a try. Worst case scenario you don't find a winter tenant and you just open the Airbnb calendar back up and hope for bookings. 

Also take a look here: https://www.eliotandme.com/estimator

This isn't perfect, but it will give you additional data. You can also try AirDnA (but they put certain info behind a paywall)

@Leon Lee

@Nancy Bachety makes some excellent points here. My experience has been that most guests are ok with a kitchenette. The key will be having enough sleep space, a private entrance, a good price and a comfortable/enjoyable guest experience (all which take time and money keep in mind). 

I usually use: https://www.eliotandme.com/estimator to research rates in the area, then once you get an idea there, head over to Airbnb and research the other listings in the area. Some hosts/neighborhoods will play around with the service fees to make the nightly rate seem lower (ultimately they still get paid the same amount), this is important to know when considering your potential income and ultimately setting up a successful listing. I've not encountered that kind of pricing with the neighborhoods for any of my rentals, but "New York City" for example does it almost exclusively.

 In terms of utilities, you almost certainly would need to split them if you want the other tenant to pay. That's usually pretty costly to do right or pretty cumbersome to do "half right". The best option I found is to just cover utilities for the whole building, maybe spend a couple bucks on energy saving items and utility tracking equipment (so you can access remotely) and just raise your intail rent rate accordingly. 

Depending on the size, and heating/cooling system, you may need to do some work to split the house anyway. If there isn't a separate thermostat in the basement already, then you likely don't have a separate heating zone set up, which means it will heat and cool along with the schedule of the tenants upstairs (which I personally wouldn't want to do if I was paying). I'd go the route of setting up a new heating zone and tieing into the same system (regardless of if you go short or long term) and paying utilities for the building. But that's me; I get that most people prefer to have one less thing to worry about. Just know that a 2nd system (new power meter, separate oil tank, 2nd gas line/tank) will require a larger upfront cost and your city and utility companies will likely want to come in, and double check everything you've done (more time and money). Maybe I'm missing something though.

Congrats on the house by the way!