Why Vacation Rentals?
We live in British Columbia and the market here is different than most parts of Canada.
It is very hard to break even in a property investment when you rent long term. After a few years, after the mortgage is paid a little bit, it gets easier. But specially in the beginning, to be able to pay for the investment (and I don’t mean profit, I mean to break even), vacation rentals (or short term rentals) give the best return.
The way I calculate investment return is that the property needs to pay itself 100%.
So even if you pay 30% down payment, to me, the income on that property needs to pay for all the expenses (mortgage, property taxes and insurance) AND the amount you gave for down payment. Even if you have the money, the property income should be used to repay yourself.
In the Log House, because it is a short term rental, the expenses also include landscaping and cleaning, as well as gas, hydro and cable. And there are also supplies such as toilet paper and coffee.
I find that talking about those things bore people, so if you have specific questions, just ask me on the comments below or by email. On my Social Media pages you can also find my telephone number.
To sum it up: it is more work to have vacation rentals; but in my experience, in BC, it is the best way to get the return on your investment.
Please note that each city has its on regulations and you need to follow them. And yes, you need to pay taxes on your income, like with everything else. The basic information is: follow the law and the rules for your city and your community and/or strata (if your investment property is a condo or a townhouse).
Now the FUN part of having Vacation Rentals!
I love dealing with our guests. The most fun part of my job is communicating with the guests. I love knowing what their are celebrating, who are the members of the family or group of friends. I have hosted people from ALL OVER the world.
Our neighbours in Roberts Creek comment on how nice our guests are. We have had people getting married and staying at the Log House, people celebrating Birthdays and Anniversaries… we’ve had children of all ages, from infants to teenagers. We have had the best behaved dogs… one of the most wonderful groups we had was a family and friends staying for Halloween. I wish we were there with them! They decorated the place and set up a photo scene; they spooked trick or treaters; and they handed out 220 pieces of candy!! Amazing.
I am amazed by the guests’ kindness too. We are blessed with wonderful people.
If you have a vacation property, you can block days for you and your family to go and enjoy it! You also can visit and check on the property often, which is nice.
After a while, you can rent less and enjoy more, if that’s your wish.
In a Vacation Rental, you have more freedom to choose your guests. Our Log House is located in a quiet neighbourhood. So we prefer families to stay in our place, because it matches with our neighbours and community. You can describe your listing and describe your neighbourhood, so guests will relate to that 🙂
Having a furnished place costs, but for people that like decorating, it is a bonus to be able to put our mark in each room 🙂
Vacation rentals are also located on vacation spots! In our case, we chose the Sunshine Coast of BC. It is only a 40 min ferry ride from Horseshoe Bay in West Vancouver to Langdale Ferry Terminal. You pass Gibsons and get to Roberts Creek in 15min from the Ferry Terminal. The whole trip including ferry ride takes about 2 hours from Vancouver. I personally like the ferry because I think for our guests, just going on the ferry ride already makes them feel like their on a Holiday!