All Forum Posts by: Lionel Johnston

@Paul Sandhu Thank you. That is a good idea for sure and I hope that works well for you. 

@Michael Baum Thanks for the tip. This was my first post and yes, I'm in Winnipeg. Is your reference related to renovations? If so, the spaces I'm looking at are unoccupied and due to the rents fall outside of the rental rate increase regulations - from my understanding. 

@Paul Sandhu Thanks for sharing your insight I appreciate it. Based on what we've already been renting and seeing comparables in our market, we aren't quite in the bigfoot and unicorn realm :) , but I do hear you. 

Looking at my post, I should have been more clear that when I'm saying 'exec rental' I just really mean that it is a longer-term rental to a business person, or family new to the region for business. That could be for a few months to a year or more. There are plenty of rentals in our market in the price range I mentioned, but I will do a gut check and make sure that I am not looking at this through rose-coloured glasses. 

Thank you. 

@Michael Baum Thanks. The building I'm looking at the HOA does allow it and our city may add a hotel tax of 5% but otherwise, there don't seem to be big issues with it. Your point was my biggest area of concern when I started looking at this.

My city is just over 700,000 ppl and our province is about 1 million. Huge land mass with one city with most of the population. Imagine something like Alaska but there is only one big city and lots of rural areas. Our city is the main hub for entertainment, medical, shopping, etc. This property is in a historic yet growing area of our downtown and would appeal to staycationers, those coming from out of town for an NHL game (post-covid of course), coming in for shopping, visiting family, or even coming in for an exteded trip for medical treatment. The big thing we'd lose right now are business travellers but once that is back this property would appeal to them as well. 

I rattled off a bunch of types of renters, and ideally, we'll identify the main type of renter and build the experience around their needs. 

Thanks

Hi Folks, 

I'm looking at a higher-end loft-style condo in a historic/artsy neighbourhood. Two obvious options are to do a str mainly through Airbnb and my own connections or rent it as a longer-term executive rental. Clearly, the str has the most to gain/lose and the executive rental is more stable but the upper end is lower. 

I realize everyone will have a different opinion based on their experience, but please share insights and opinions. If it matters, we've invested in RE for 14 years but that was with sfh and longer-term rentals, which is why I'm asking for your insight.

Notes:

1. Furnished lofts in both cases

2. Exec rental is based on $4000/mth which is on the high-end in our city but it is a great location and space. The range would realistically be from $3,500-$4,500. 

3. Airbnb is based on $300/night at 15 days/month. Personally, my wife and I just rented a comparable but smaller Airbnb for $258/night. The range is likely $2-3000/month to start with an upward potential of $5,000-6,500+. 

4. Funds are in Canadian, but that doesn't likely matter other than relative pricing being around $225/night USD. 

Thanks! 

Exec Rental:

 airbnb Model: