OPEN HOUSE SAT SEPT 28 1-230pm. Motivated seller. Enjoy waterfront living and ocean views from this bright and tastefully decorated suite in the popular and much sought a...
Courtesy of Newport Realty Ltd.
Welcome to The Juliet, a fantastic concrete and steel building offering a vibrant urban lifestyle in the heart of the downtown core. As you step into this modern residenc...
Courtesy of Island Realm Real Estate
Welcome to the Belvedere! Bright and airy executive suite with stunning views of the Victoria skyline and the ocean in the distance. Open interior is flooded with natural...
Courtesy of RE/MAX Camosun
Short term rental allowed with monthly rental reach to $7000 per month in summer. Legato, the condo located in the heart of beautiful downtown Victoria. It was created by...
Courtesy of NAI Commercial (Victoria) Inc.
Opportunity knocks - located in the desirable Humboldt Valley & built by award winning Concert Properties, the steel & concrete Astoria offers the best of both worlds – a...
Courtesy of Newport Realty Ltd.
Welcome to the Juliet, a 14 storey building w/ a unique curved window facade, & one of the few condos in Victoria that ALLOWS, LEGAL, SHORT TERM RENTALS(ex. AirBnB). This...
Courtesy of Engel & Volkers Vancouver Island
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Owning a short term vacation rental investment property in Victoria, also known as an STVR, VROB or AirBnB investment property, can be an attractive revenue generating opportunity. However, with the current challenges in the rental market and the increasing pressure for affordable housing, it is crucial to be well-informed before making such a purchase. Local governments are continually applying pressure to force short term vacation rental condos into the long term rental pool, for example, to alleviate some of the rental housing shortage pressures that they have caused and created in the first place, though obstructive anti development policies implemented out of imaginary environmental concerns, or to cater to local NIMBY opposition pathology.
Back in 2017, in an extremely short sighted move, spearheaded by the notorious Ben Isitt, who thankfully failed in his 2023 re-election bid, the City of Victoria downzoned dozens of development sites with short term rental development potential, to prohibit the development of short term rental condo buildings. They lost a major legal battle surroudning this as well when they also tried to downzone sites that were already under construction, at a significant cost to the local taxpayers for legal expenses.
The net result has been a reduction in the construction and development of condos overall, further reducing the available housing stock in Victoria.
In this article, we will outline important dos and don'ts that you should consider before buying such an income-producing property in Victoria. These guidelines will help you navigate potential regulations, insurance coverage, zoning restrictions, tax implications, and the expectations of both short-term visitors and long-term tenants.
A short term rental stay is defined as any tenancy of a duration of less than 30 days. For this, anticipate the need for a business license and payment of property tax as a business. The proposed regulations by the Victoria City Council prioritize these requirements. Verify with your insurance provider whether coverage is available for a vacation property. Some insurers may decline coverage or charge higher rates due to the perceived risks associated with short-term rentals. Check the zoning regulations of your property with the municipality. Many areas in the Capital Region prohibit short-term rentals for secondary suites.
An experienced Realtor knowledgeable with this property type can assist you in researching zoning information for your desired area. Review the strata guidelines of condo buildings you are interested in. Not all buildings permit short-term vacation rentals, so it's important to carefully read and understand the regulations. They can also help access the strata regulations on your behalf. Understand that income earned from your vacation rental must be reported to the Canada Revenue Agency (CRA) as part of your personal income. Consult with an accountant to explore any potential tax implications affecting your capital gains.
In fact, there are only about two dozen or so condo buildings in Victoria that permit this type of use. Even where permissible pursuant to zoning you must still peruse the applicalbe strata corporation bylaws to confirm the actual policy. Changes made to the strata property act in 2010 have enabled developers to prohibit future strata councils from enacting rental restriction bylaws, wherefore short term rental buildings constructed post 2010 are generally more desirable for this reason. Check the Form B for the applicable developer declaration on future rental restriction powers of the strata council. There may still be attempts made by future councils to restrict short term rentals by trying to classify short term rentals as business use with local governments now requiring a business license, but traditionally attempting to restrict short term rentals fits within the scope of imposing rental restrictions.
Ensure that eligible expenses related to furnishing, upgrading, and maintaining your vacation property are claimed against your net income. Treating your rental as a legitimate business allows you to take advantage of tax deductions.
Don't neglect the concerns of long-term occupants (neighbors) within the condo building. They may be more likely to file complaints with the strata council if they observe violations of strata rules. Visitors coming and going frequently can lead to additional wear-and-tear, security risks, and noise disturbances. Assume that your vacation property rental will consistently cover your mortgage every month. There may be periods, especially during the low season, when your property remains unrented.
During slower periods, consider adjusting your nightly rates or offering incentives to attract visitors. Explore alternative advertising avenues such as university and college newspapers. Temporary long-term tenants may also be an option during slower months. Overlook the pros and cons of renting to short-term visitors versus long-term tenants. While short-term rentals may yield higher profits during peak seasons, consider the additional responsibilities of frequent cleaning and maintenance. Some vacation property owners find these tasks burdensome.
Opting for a long-term tenant may result in lower overall income but provides a stable monthly revenue stream with less turnover and maintenance. Do not hesitate to invest in effective marketing for your vacation property. Similar to selling a property, hiring a professional photographer and promoting your property on platforms like Airbnb or VRBO can attract more attention and potential guests. The effort put into furnishing and marketing your property will likely attract visitors who will take better care of it. Forget that potential visitors rely on reviews from past guests to gauge their experience. To attract quality guests who leave positive reviews, ensure your property description is accurate and up-to-date. Equip the property with necessary amenities for guest comfort, be readily available to answer questions, and promptly address concerns. Conclusion: Before purchasing a vacation property in Victoria, it is essential to navigate the dos and don'ts associated with this investment. By considering the proposed regulations, insurance coverage, zoning restrictions, tax obligations, and the expectations of both short-term visitors and long-term tenants, you can make an informed decision. Again, an experienced agent with extensive experience in navigating the rules and regulations of investment properties in Victoria, is available to provide expert guidance and support throughout the process.
Complete List of Sort Term Vacation Rental Condo Buildings in Victoria
517 Fisgard St - The Union
456 Pandora Ave - The Janion
595 Pandora Ave - 595 Pandora
599 Pandora Ave - The Vogue
534 Pandora Ave - Lum Sam & Lee Cheong
534 Yates St - The Leiser
708 Burdett Ave Ave - The Falls
1315 Waddington Alley - Morley Soda
707 Courtney St - The Falls
760 Johnson St - The Juliet
1602 Quadra St - The Palladian
562 Yates St - The Oriental
517 Fisgard St - The Union
535 Fisgard St - Lum Sam & Lee Cheong
528 Pandora Ave - The Union
1610 Store St - The Janion
409 Swift St - The Mermaid Wharf
601 Herald St - 601 Herald
608 Broughton St - The Sovereign
610 Johnson St - The Monaco
613 Herald St The Cityzen T
788 Humboldt St - The Belvedere
732 Broughton - The Soma
960 Yates - The Legat