Short-Term vs. Long-Term Rentals in Calgary: Which One Wins for ROI?

Calgary’s rental market is booming, and if you’re thinking about investing, you’ve got two big options: short-term rentals (like Airbnb) or long-term rentals. Each has its ups and downs, so let’s break it down in a way that’s easy to understand.

1. Who Makes More Money?

• Short-Term Rentals: These can bring in about $3,048 a month before expenses, which is more than the $2,800 a month that long-term rentals make. But because short-term rentals have extra costs (cleaning, furniture, etc.), their yearly profit is usually $13,144, while long-term rentals average $14,880 (Source: Airbtics).
• Long-Term Rentals: They might earn less upfront, but they’re steady and don’t have as many extra costs.

Quick Take: Short-term makes more gross income, but long-term often keeps more money in your pocket.

2. How Often Will It Be Rented?

• Short-Term Rentals: These are busy during tourist seasons (like summer in July) but quieter in off-peak months. Occupancy is about 78% on average (Source: Airbtics).
• Long-Term Rentals: These are almost always rented, with rates between 90-100%. Leases keep them filled year-round (Source: HomeRiver Group).

Quick Take: Long-term rentals = steady. Short-term rentals = feast or famine.

3. How Much Work Does It Take?

• Short-Term Rentals: You’ll need to clean up after guests, keep things maintained, and maybe hire help to manage bookings. Cleaning alone could cost you $4,800 a year, and if you hire someone to manage it all, they’ll take up to 25% of your income (Source: Arvy Realty).
• Long-Term Rentals: These need way less day-to-day attention. Tenants handle their own utilities and only call you for major repairs. Management fees are usually just 8% of monthly rent (Source: Unison Realty Group).

Quick Take: Short-term = lots of hands-on work. Long-term = more chill.

4. What About Calgary’s Rules?

• Short-Term Rentals: Calgary has strict rules—you’ll need a license (costing $172-$510 a year) and must follow safety and zoning regulations. If you’re in a condo, you’ll also need permission from the condo board (Source: City of Calgary).
• Long-Term Rentals: These follow simple landlord-tenant laws, which don’t change much (Source: Residential Tenancies Act).

Quick Take: Long-term rentals are easier when it comes to rules.

5. Can You Get Financing?

• Short-Term Rentals: Banks see these as risky, so they might ask for higher down payments (20-30%) and charge higher interest rates. Plus, you’ll need to spend extra to furnish the place (Source: Catalyst Condos).
• Long-Term Rentals: Banks like these because they’re stable. You can get better interest rates, and rental income helps you qualify for loans (Source: CMHC Programs).

Quick Take: Long-term rentals are easier to finance.

6. What Could Go Wrong?

• Short-Term Rentals: Income isn’t steady. Slow seasons hurt your wallet, and more guests mean more wear and tear on your property (Source: Masterhost).
• Long-Term Rentals: The biggest worry here is a tenant not paying rent, but proper screening can reduce that risk (Source: WOWA.ca).

Quick Take: Short-term = unpredictable. Long-term = fewer surprises.

The Final Verdict

If you’re willing to put in the work and deal with the ups and downs, short-term rentals could give you higher income. But if you’re looking for something more stable and hands-off, long-term rentals are the way to go.

It all depends on your goals and how much time you’re ready to invest. Want help figuring it out? Reach out to a real estate advisor or property manager to get started!

Continue Your Journey

If you want to dive deeper into Calgary’s rental market, check out these related blogs: (COMING SOON)

• Occupancy Rates and Seasonal Trends in Calgary’s Rental Market
• Operating Costs and Management Requirements for Short-Term vs. Long-Term Rentals
• Navigating Calgary’s Short-Term Rental Regulations: What Investors Need to Know
• Financing Options for Short-Term and Long-Term Rental Properties in Calgary
• Risk Management Strategies for Calgary Rental Investors

Ready to explore more? Click on the links above or contact Hasan Sharif to get started today: 403-808.9705 

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