With the right market conditions and demand, renting out a property in the Greater Toronto Area can be an excellent investment activity. You can create a short-term or a long-term rental, both of which have advantages and disadvantages.
But it’s not as simple as listing your Brampton property, then waiting for the money to roll in. It requires careful planning to ensure you adhere to local rules and regulations and that your investment will pay off. Using an online platform such as Rentola is a simple way of showcasing your property and reaching tenants around the globe. By following these tips and recommendations, you’ll be well on becoming a successful landlord or host in the online rental space.
Check the legal requirements.
Establishing a short- or long-term rental business starts with understanding your legal requirements as a landlord or host. Each jurisdiction has laws regarding licenses/permits and mandatory insurance, as well as what you must provide as a landlord at a minimum.
For short-term rentals, there may be specific rules about how many days the space can be rented out each year, or they may be forbidden altogether due to a lack of long-term accommodation in the area. Check out the city’s Planning & Development page for current Brampton regulations.
In addition, there may be restrictions depending on whether you own the property or are still paying off your home loan. If it’s the latter, you will need approval from your mortgage provider before proceeding, or you may need to switch to a different type of mortgage. Tenants will need the permission of their landlord before subletting.
Determine if it’s economical.
Before preparing your online rental (and potentially spending a lot of money), check whether it will be an economical business venture. If you’re considering a short-term rental, look at what other Brampton hosts charge per night for similar properties and what the average occupancy rates are. Based on that information, you can determine your likely earning potential as a short-term rental host.
You can do the same for long-term rentals – check the weekly/monthly rates for similar properties in Brampton and figure out how much you will earn in a calendar year.
When comparing the earning potential of a short-term vs. a long-term rental, you need to consider the extra costs of running a short-term rental (such as cleaning and listing fees) and the work that goes into a constant changeover of guests/tenants.
Prepare your space
Whether you’re renting out your property on a short-term or a long-term basis, it must be structurally sound and safe for tenants/guests to live comfortably. All plumbing and electrics should be in good working order and pass any safety checks, while appliances (fridge, microwave, dishwasher) should have recently undergone maintenance.
You want to ensure that there are blinds or curtains in the bedroom and living spaces for privacy and that carpets and other floorings are clean. If there is a garden or yard, make it as low-maintenance as possible so that it doesn’t require regular upkeep by guests or you and your co-host.
If you rent out the space short-term, consider installing a keyless lock so guests can check in whenever it suits them without inconveniencing you.
Create your listing
A well-written online listing with high-quality photographs is essential for “selling” your space, particularly for guests/tenants who cannot view it in person. Not only do you want to include the number of bedrooms and bathrooms (and how many people the property can accommodate) but also the facilities and amenities that are available to them.
Make mention of the parking situation and any nearby attractions, as well as cafes or restaurants within walking distance. It would be best to consider what sets your property apart from the rest and make mention of its USP (“unique selling point”).
If there are any quirks about your property or people it might NOT be suitable for, be upfront about this. It’s better to warn guests/tenants before they arrive rather than having it come out later as a bad online review. It’s also important to be clear whether you accept pets (and what types) and if the property is accessible to guests with limited mobility.
Consider hiring a professional to showcase your property in the best possible light when it comes to photographs. Set up the space as you would want it to appear if you were a guest stepping through the door, with cleanliness and clutter-free being two of the key focus points.
Enlist some help
If you’re creating a short-term rental, it might be worth enlisting the help of someone else to manage the property on your behalf or when you are away. Consider someone capable of collecting emails and communication with guests, as well as being available for check-in and handling any urgent issues at the property. That is a bonus if they can also clean and do repairs and maintenance!
Listen to feedback
As you start renting out your property, the feedback from guests will make or break your business. Customer-centric experiences will help to boost your rating and make your property more appealing to other guests, and feedback (both positive and negative) can play a significant role in this.
Whether you’re getting feedback from guests in person or through online reviews, carefully take onboard what they have to say. It might be little things like the lack of a sharp knife in the kitchen or no reading lights beside the bed – simple fixes that won’t cost much money.
Guests often highlight what makes a stay extra special (local goodies on arrival or the welcome they received from the host), so continue to prioritize these as part of your hospitality experience.