Is Calgary Airbnb Friendly for Investors? What You Need to Know

Tap into one of the top 20 cities in North America for short-term rental returns — Calgary, Alberta, Canada. Also called the Gateway to the Canadian Rockies, its tourism potential makes it an ideal location for Calgary Airbnbs.

You couldn’t ask for a more vibrant city life, natural beauty with stunning landscapes, a diverse cultural scene, and numerous recreational activities, including the world-famous Calgary Stampede. Tourism Calgary forecasted 8.2 million visitors for 2023, and the Stampede alone brought 1,384,632 visitors throughout its ten-day event in July 2023. 

With Airbnb rentals becoming more popular worldwide, hotels are no longer the only accommodation option. Read on to learn why short-term rentals in Calgary are an excellent investment, including the pros and cons, regulations, and tips for successful Airbnb investing.

Regulations and Restrictions for Short-Term Rentals in Calgary

Before investing in short-term rentals in Calgary, it’s essential to learn the local regulations and restrictions governing Calgary Airbnbs, such as:

• Licensing: You must have a Short-Term Rental Business License that matches the number of rooms offered for rent — Tier 1 license for one to four rooms and Tier 2 license for five or more. You also must include the license number in all advertising for Calgary short-term rentals.
• Booking restrictions: No overlapping reservations in the same dwelling. You can rent multiple rooms as one guest reservation, but you can’t rent separate rooms to separate guests on individual reservations.
• Safety requirements: Only two adults per room, excluding minors, and every room must have at least one egress window.
• Accurate record-keeping: You must keep accurate records in English and electronic form, including each paid guest's email address and full name. Keep this info handy if an inspector demands to see them.
• In case of emergency: You must display a contact person’s information, including phone number, name, and email address, who’s reachable 24 hours a day, in a conspicuous location.
• Comply with other rules: You must comply with any rules or contracts from condos, leases, homeowner associations, or tenant organizations.

Pros and Cons of Investing in Airbnb Rentals in Calgary

The high demand for short-term rentals in Calgary is a desirable reason to invest, but before you do, check out this list of pros and cons. 

Pros

Pros of Airbnb rentals in Calgary include:

• Thriving tourism: Over 8 million Calgary visitors predicted for 2023.
• Competitive income: Ranked 20th in North America for short-term rental returns.
• An investment with flexibility and control: Tailor your rental schedule to suit your financial needs with an Airbnb in Calgary — rent it all year or use it yourself during specific periods. 
• Diversify your portfolio: Safeguard against market fluctuation, mitigate risk and maximize returns, and provide cash flow to support other investments. 
• Positive economic outlook in Calgary: Expect economic stability, a strong job market, and numerous thriving industries.
• Real estate market stability: A year-over-year increase of 1.8% in average home prices keeps Calgary’s real estate market well-balanced with supply and demand.
• Mortgage options tailored for investment properties: Mortgage lenders in Calgary cater to the high demand for investment properties and offer competitive rates and favourable terms. 

Cons

Cons of Airbnb rentals in Calgary include: 

• Tax implications: Income generated from short-term rentals in Calgary is taxable and may be subject to other taxes like GST or MAT.
• Upkeep and maintenance: Necessary costs like cleaning, repairs, landscaping, and appliance replacement can cut profits.
• Liability insurance: Keep your investment protected and your guests safe with special short-term rental insurance coverage.
• Guest expectations: You must vet, book, and answer all potential guests in a timely manner.
• Manage reviews: To build your reputation, you must address all issues and respond to guest inquiries immediately.

Tips for Successful Airbnb Investing in Calgary

All successful Calgary Airbnbs have one thing in common — attention to detail and effective management. Here are some tips to ensure your investment in Calgary short-term rentals is lucrative. 

• Capitalize on excellent communication
• Create an inviting, eye-catching listing
• Go above and beyond with cleanliness and comfort
• Set competitive pricing
• Offer a personalized touch
• Request reviews and answer both positive and negative reviews promptly
• Partner with a reputable property management company to alleviate the stress

Calgary Airbnb — Investor-Friendly? Yes!

Calgary offers a very favourable environment for Airbnb investors with a stable real estate market, booming tourism, a high demand for short-term rentals, and beautiful mountain views with year-round activities. The Calgary short-term rentals market presents a lucrative opportunity for investors who want to generate substantial returns, especially when they leave the work to a trusted property management company.

Your revenue-generating property should be a stress-free, exciting experience that enhances your life, not controls it. 

Welcome to Aisling Baile, the simple, affordable route to exceptional rental services, from listing creation and management to guest communications, home staging, setup, cleaning, maintenance, and everything in between.