TL;DR:
Short-term rentals (STRs) like Airbnb offer impressive income potential but are harder to finance, operate, and regulate, particularly in Calgary, where new 2025 rules impose stricter compliance standards. Long-term rentals (LTRs) provide stability and easier financing but come with lower income potential and the risks of dealing with problematic tenants. This guide breaks down the pros, cons, and key regulatory details to help you decide.

👉 Ready to discuss your strategy? DM me on Instagram @nasahctus or call/text 403-808-9705 for tailored advice.

What You’ll Learn

1. STR advantages and challenges for condos and single-family homes (SFHs).
2. Why refinancing STRs is more difficult than LTRs.
3. The stability of LTRs—and the risks of bad tenants and lower cash flow.
4. Calgary’s recent regulations that impact both STR and LTR investments.

Short-Term Rentals (STRs): High Income, High Complexity

STRs shine for investors looking to maximize cash flow, especially in high-demand areas like Calgary, where tourism is strong. However, they demand significant effort, face tougher financing barriers, and operate under increasingly stringent regulations.

STRs in Condos vs. Single-Family Homes (SFHs)

Condos

Pros:

• Prime Locations: Condos are often in urban centers, close to tourist attractions and business hubs.
• Lower Maintenance: Shared facilities reduce maintenance burdens for owners.

Cons:

• Condo Board Restrictions: Many boards outright ban STRs or impose strict rules, limiting their viability【6†source】.
• Community Pushback: Noise complaints and security concerns from short-term guests can create friction with neighbors.

Single-Family Homes (SFHs)

Pros:

• Space and Privacy: SFHs appeal to families and larger groups, commanding higher nightly rates.
• Fewer Restrictions: Unlike condos, SFHs are less likely to face operational bans.

Cons:

• Higher Costs: Larger properties mean higher cleaning, furnishing, and maintenance expenses.
• Neighborhood Resistance: Local residents may oppose STRs due to concerns about parking, noise, or community disruption【7†source】.

Financing an STR: The Uphill Battle

Refinancing STRs is notoriously difficult compared to LTRs. Here’s why:

• Income Instability: STR income fluctuates with seasonality and market demand. Banks are hesitant to accept it as a reliable revenue stream【6†source】【7†source】.
• Higher Risk Perception: Lenders often require larger down payments and charge higher interest rates for STR properties【6†source】【7†source】.
• Alternative Financing: STR owners frequently rely on HELOCs or private loans, which can carry less favorable terms.

Regulations Impacting STRs

Calgary’s 2025 Business Licence Bylaw introduces significant changes for STR operators:

1. Licensing:

   • Primary Residences: $172/year.
   • Non-Primary Residences: $510/year, with stricter compliance requirements.

2. Compliance Costs:

   • Mandatory fire inspections.
   • Egress requirements for all rented rooms.

3. Moratorium on Non-Primary STR Licenses:
   If Calgary’s rental vacancy rate drops below 2.5%, no new licenses will be issued for non-primary STR properties【6†source】【7†source】.

These rules add administrative and financial burdens, making STRs less appealing for smaller investors.

Long-Term Rentals (LTRs): Stable, Predictable, and Lower Risk

LTRs appeal to investors who prioritize predictable cash flow and a simpler management style. With tenants typically staying 6–12 months or longer, LTRs provide steady income but often sacrifice the high returns of STRs.

Why LTRs Are Reliable

1. Predictable Income: Leases lock in steady payments, ideal for covering fixed expenses like mortgages.
2. Easier Refinancing: Banks love the stability of LTRs, offering better loan terms than for STRs【7†source】.
3. Less Frequent Management: Lower tenant turnover reduces marketing, cleaning, and maintenance efforts【7†source】.

The Challenges of LTRs

1. Lower Income Potential:
   Rent is capped by market rates and lease terms, limiting flexibility.

2. Problematic Tenants:
   A difficult tenant can cause property damage, delay payments, or require a lengthy eviction process under the Alberta Residential Tenancies Act【7†source】.

3. Future Regulatory Risks:
   Rent control policies are being discussed in Calgary, which could cap rents and reduce profitability for landlords【6†source】【7†source】.

Regulations Impacting LTRs

While LTRs face fewer immediate changes than STRs, Calgary’s growing focus on housing affordability could lead to:

• Rent Caps: Limiting the ability to increase rents annually.
• Increased Tenant Protections: Stricter rules for evictions and lease terminations could emerge【7†source】.

For now, LTR investors benefit from a stable regulatory environment, but staying informed is critical.

STR vs. LTR: A Quick Comparison

Key Takeaways

Choose STRs if:

• You’re comfortable with the high workload and want to maximize returns.
• Your property is in a prime tourist area, like downtown Calgary or near event hubs.
• You can navigate Calgary’s strict licensing requirements.

Choose LTRs if:

• Stability and predictable income align with your goals.
• You want easier financing options and less day-to-day involvement.
• You’re prepared for potential tenant issues and rent control risks.

Final Thoughts

STRs and LTRs each have unique strengths and weaknesses. STRs offer higher income potential but come with tougher financing, operational complexity, and stricter regulations. LTRs are the safer bet for consistent income but lack the financial upside and flexibility of STRs.

Let’s figure out the best strategy for YOUR investment goals.
📩 DM me on Instagram: @nasahctus
📞 Call or text: 403-808-9705

Together, we’ll tailor a plan that works for your portfolio and lifestyle.

-Hasan

References

1. Calgary Short-Term Rental Regulations (calgary.ca)
2. Calgary Rental Market Outlook 2025 (CBC News)
3. LiveWire Calgary: STR Licensing Update
4. Zumper Rental Research for Calgary
5. Hostaway: STR Market Insights
6. Premier Stays Calgary STR Trends