Calgary Real Estate Tips for Buyers & Investors (2025)

Financing Options for Short-Term and Long-Term Rental Properties in Calgary Introduction Investing in Calgary’s rental market is an exciting opportunity, but understanding financing requirements is key to success. Whether you’re purchasing a property for short-term rentals (STRs) like Airbnb or long-term rentals (LTRs), the down payment and financial obligations vary based on how you plan to use the property. This guide breaks down Calgary’s financing options for both STRs and LTRs to help you navigate your investment journey. Down Payment Requirements for Short-Term Rentals (STRs) The down payment needed for a short-term rental depends on whether you plan to live in the property or use it strictly as an investment. 1. If You Plan to Live in the Property (Owner-Occupied) 1-2 Units: Minimum 5% down payment on the first $500,000 of the purchase price. 10% on any amount above $500,000, provided the total price is under $1 million. This qualifies as a homeowner loan under Canadian Mortgage and Housing Corporation (CMHC) rules.Learn more: CMHC 3-4 Units: Minimum 10% down payment. 2. If You Do Not Plan to Live in the Property (Investment Property) Non-Owner-Occupied Properties: Minimum 20% down payment required for properties with fewer than five units. Properties with more than four units or classified as commercial may require 20%-35% down, depending on factors like location and cash flow potential.Learn more: WOWA. New Licensing Fees and Moratorium Starting in 2025, Calgary city council has approved new licensing fees for STRs: Primary Residences: $172 annually. Non-Primary Residences: $510 annually.Additionally, the city may freeze licenses for non-primary residences when long-term rental vacancy rates drop below 2.5%. This change is designed to balance the housing market. Learn more: Calgary Herald. Down Payment Requirements for Long-Term Rentals (LTRs) LTRs offer more accessible financing options, making them a great choice for first-time buyers and those seeking a stable investment. Owner-Occupied and Rental Properties Properties Under $500,000: Minimum 5% down payment. Properties Between $500,000 and $999,999: 5% on the first $500,000 and 10% on the remaining amount. Properties Over $1 Million: Minimum 20% down payment required. Learn more Additional Benefits for LTR Financing Mortgage Default Insurance: Required if the down payment is less than 20%, increasing costs but providing flexibility. Learn more: Best Mortgage Online. Gifted Down Payments: Family members can contribute, making LTRs more affordable for first-time buyers. Learn more: Richard’s Mortgage Group. Comparative Analysis of STRs vs. LTRs Category Short-Term Rentals (STRs) Long-Term Rentals (LTRs) Down Payment 5%-10% (owner-occupied); 20%-35% (investment) 5%-20% based on price Licensing Fees $172-$510 annually None Mortgage Insurance Required if Required if Regulations Strict licensing and operational rules Fewer regulations Accessibility Higher barriers for investment Easier for first-time buyers Tips for Financing Success Assess Your Risk Tolerance:STRs offer higher returns but require larger upfront investments and active management. LTRs are stable and predictable, making them better suited for risk-averse investors. Consult Professionals:Mortgage brokers can help secure the best rates, while financial advisors can guide you toward long-term strategies. Build a Strong Financial Profile:A high credit score and low debt-to-income ratio will improve your chances of securing favorable loan terms. Stay Updated on Regulations:Calgary’s rental market rules are evolving. Regularly check city updates to ensure compliance. Conclusion Understanding Calgary’s financing options for STRs and LTRs is essential to align your investment strategy with your financial goals. STRs require higher down payments and stricter compliance but can yield significant returns. LTRs, on the other hand, offer more accessible financing and long-term stability, making them a great choice for first-time buyers and those seeking predictable income. By understanding the financial landscape and staying compliant with Calgary’s rules, you’ll set yourself up for success in Calgary’s rental market. Continue Your Journey If you want to dive deeper into Calgary’s rental market, check out these related blogs: Short-Term vs. Long-Term Rentals in Calgary: Which One Wins for ROI? Navigating Calgary’s Short-Term Rental Regulations: What Investors Need to Know More coming soon: Occupancy Rates and Seasonal Trends in Calgary’s Rental Market Operating Costs and Management Requirements for Short-Term vs. Long-Term Rentals Risk Management Strategies for Calgary Rental Investors Ready to explore more? Contact Hasan Sharif to get started today: 403-808-9705Follow Hasan on Instagram  

Navigating Calgary’s Short-Term Rental Regulations: What Investors Need to Know Introduction Calgary’s short-term rental (STR) market offers great opportunities for investors, but strict regulations make it important to know the rules. In this blog, we’ll break down what it takes to run a compliant STR in Calgary, including licensing, costs, and tips for success. What Are Calgary’s STR Rules? Calgary’s STR regulations focus on safety, accountability, and community harmony. Here are the key rules: Business Licenses: STRs require a business license in Calgary. Costs are: $172/year for primary residences $510/year for non-primary residencesMore information here. Safety Requirements:Properties must meet fire safety standards, including smoke detectors, fire extinguishers, and clear evacuation routes. Zoning and Condo Rules:Certain neighborhoods and condo boards restrict STRs. Before listing your property, ensure you meet zoning requirements and get condo board approval where applicable. Tourism Levy:Hosts must collect a 4% tourism tax from guests and remit it quarterly. Learn more about this levy on the Alberta government website. Challenges and Costs Operating an STR involves upfront and ongoing costs that can affect your profits: Compliance Costs: Licensing fees: $172–$510 annually. Safety upgrades, such as fire extinguishers and smoke detectors, can cost $300–$1,000 annually. Insurance:STR insurance is more expensive than regular homeowner insurance, costing $500–$1,500 per year. Operating Costs: Cleaning services typically cost $50–$150 per stay, totaling $4,800 annually for regular guest turnovers. Utilities, Airbnb platform fees, and furnishing your rental are additional expenses. Why These Rules Matter Calgary’s STR regulations are designed to create a fair and safe market. Here’s why they’re important: Improved Safety: The rules ensure guests stay in secure properties, reducing risks like fire or health hazards. Market Stability: By requiring licenses, the city reduces oversaturation and keeps the market competitive for compliant operators. Pro Tips for STR Success Want to make your Calgary STR stand out? Here are some tips: Hire a Property Manager:Professional property managers can handle guest communication, bookings, and regulatory compliance, saving you time and stress. Focus on High-Demand Locations:STRs near downtown Calgary or popular tourist spots, like the Calgary Tower or the Calgary Stampede grounds, are more likely to stay booked. Use Dynamic Pricing Tools:Apps like AirDNA or PriceLabs can help adjust your rates based on seasonal demand and market trends. Stay Updated on Rules:Regulations can change, so it’s essential to monitor city updates and maintain compliance. Check Calgary’s official STR regulations page regularly. Conclusion Navigating Calgary’s STR regulations might seem challenging, but with the right approach, you can build a profitable business while staying compliant. Focus on managing costs, following the rules, and leveraging high-demand locations to maximize your STR success. Continue Your Journey If you want to dive deeper into Calgary’s rental market, check out these related blogs: Short-Term vs. Long-Term Rentals in Calgary: Which One Wins for ROI? Financing Options for Short-Term and Long-Term Rental Properties in Calgary More coming soon: Occupancy Rates and Seasonal Trends in Calgary’s Rental Market Operating Costs and Management Requirements for Short-Term vs. Long-Term Rentals Risk Management Strategies for Calgary Rental Investors Ready to explore more? Contact Hasan Sharif to get started today: 403-808-9705Follow Hasan on Instagram

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  https://instagram.com/nasahctus