5-Reasons Why Presale Condos Make Great Airbnb’s Rentals In Surrey
Airbnb’s introduction into the vacationing sector was a move that disrupted the whole hospitality industry. Peer-to-peer services are the next big thing as we can see how popular apps like Lyft, uber, etc are getting.
Especially in the lower mainland of British Columbia, where the weather is always playful and the sceneries are picturesque, tourists flock to this side of Canada throughout the year.
This is why Airbnb has become insanely popular in this region and with Surrey being the next major downtown area, the appeal of converting your presale investment condo into a short-term rental is undeniable!
Plus, it is not just tourists, but also locals that take advantage of this new wave of hospitality. In fact pre-covid, Airbnb’s in Vancouver and Surrey area were booked to capacity at any given time.
And now that live post-pandemic has come back in full swing, it is a great time to think about bringing in some passive income by converting your investment condo in surrey into an Airbnb.
Does Your Property Quality For an Airbnb?
First and foremost, we need to answer the question: “Is this even possible with your condo?”.
To understand how a presale condo works, you need to know a bit about strata and their bylaws. A condo building is maintained and operated by a committee called the Strata which is a body responsible for drafting up various bylaws as well that apply to all residents living in that building.
Some condos’ strata strictly prohibit the use of the units as short-term rentals.
But, there are many other buildings, especially in some touristy areas where presale condos allow residents to convert their units into Airbnbs.
With Surrey seeing a huge influx of population from all around the lower mainland, experts say that surrey could become BC’s largest city by 2030!
Many more projects are coming up with Airbnbs allowed as they are seeing the benefit for the people who are buying these pre-construction condos as an investment.
Reasons Why Investment Condos Make Great Airbnbs Rentals in Surrey
So let’s just say that you just signed a contract for a presale condo that allows you to convert it into an Airbnb. Here are some of the reasons why using an investment condo as an Airbnb is a great idea:
Reason #1: Surrey is the Future Downtown - Benefits of Convenience
A good thing about presale condos is that they are usually clustered closer to the city and city centers. This is where most of the happening things are going on and most of these places also enjoy great connectivity to transit.
Take Surrey for example. Most of the popular condo buildings are concentrated around the SkyTrain stations like surrey central & King George. And with the transit network extending out to Langley, it has become a very attractive place to set up short-term rentals like Airbnb.
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Many condos also have popular community hubs and retail locations right below the buildings making it convenient for a tourist to get the essentials.
All these factors are conducive to a tourist’s rental situation.
In fact, we might argue that location is THE most important factor that can determine the success of your Airbnb. So if you think you’re sitting on an Airbnb gold mine and know that your strata allow short-term rentals – get in touch with us at email@example.com or call us at 604-825-8881 and we will set you up with a property manager that helps you with A to Z of Airbnb rental for your presale investment condo.
Reason #2: A Rise of Tourists in Surrey
The popularity of Surrey as a vacation destination is increasing year by year. According to 2021 tourism data, Surrey is the 12th most popular destination in Canada. Before getting into the hospitality market, you need to understand that hotels are your primary competitors. In fact, hotels have been at battle with Airbnb since its inception.
But an Airbnb condo offers much more than a hotel: larger living space, full kitchen, sometimes spacious balconies, and may even contain some appliances like a washer, dryer, dishwasher, oven, etc.
The upcoming presale condos in the area are competing with one another resulting in some really good amenities being provided in each project. Things like swimming pools, tennis courts, fitness centers, and even discounts on golf, etc are something that will make your Airbnb listing stand out.
Reason #3: Surrey Prices are Much Lower than Downtown Vancouver
A cost of a 1-2 bedroom condo is in most cases significantly lower than say a townhome or a single-family home. This lower cost also means that you pay less for the mortgage as well.
Given these lower investment costs, it is generally easier to make a profit on these presale condos. We are not suggesting that you will make a profit every time without fail! A lot of that depends on various other factors, but for starters, a lower cost of investment from your side means that the bar for profitability is lower than in other cases.
The reason why we think is important is also because when you find a tenant for a long-term rental on your unit, the tenant usually pays the Utility cost. But when you rent it out for short-term rentals like Airbnb, the hosts have to cover the utility costs. This is where having a smaller area and low fixed costs comes in handy.
Reason #4: Surrey is the New Education Hub
Surrey, renowned for its excellent educational institutions like SFU and KPU, is a magnet for both local and international students, bolstering Surrey’s real estate market.
This educational prominence is further enhanced by the University of British Columbia (UBC)’s recent purchase of a purchased a 6.13 Acre lot for $70-million at Fraser Highway & King George Boulevard, a significant development in Surrey.
This influx of students to Surrey from various parts of the country and the world is set to escalate the demand for housing in the area.
In this context, investing in Surrey presale condos presents a lucrative opportunity.
Converting these presale condos into short-term Airbnb rentals is an astute strategy to meet the growing accommodation needs.
The popularity of Airbnb among young students, especially international students who often face challenges in securing immediate rental accommodation upon arriving in Canada, highlights the potential of Surrey presale condos as profitable rental properties.
This trend underscores the vitality of Surrey’s real estate market, particularly for investors and homeowners considering presale condo opportunities.
Reason #5: Vast career opportunities in the city of Surrey
Surrey, poised to become one of Canada’s largest cities within the next decade, is witnessing a remarkable surge in its real estate market, particularly in Surrey presale condos.
The city’s growth is fueled by a diverse influx of immigrants and Canadians from various regions, all drawn to Surrey for its flourishing career opportunities.
This demographic shift is significantly boosting the demand for housing in Surrey, a key factor for those interested in Surrey real estate.
However, the supply of affordable housing is not keeping pace with this rising demand, creating unique opportunities in the market, especially for Surrey presale condos.
Given this scenario, investing in an Airbnb rental property in Surrey presents a dual advantage.
It serves as a lucrative venture for you as a landlord in the thriving Surrey real estate market, and provides a temporary yet comfortable housing solution for new BC residents.
This option is particularly appealing for those who are in the process of searching for more permanent residences, possibly in one of the many upcoming Surrey presale condos.
Risks of Renting Your Investment Condo as an Airbnb
Although renting out your investment condo as an Airbnb can be a very lucrative venture, there are some important risks that are involved with this commitment. Knowing these well in advance can help you make wise decisions.
#1: Make sure your condo’s strata allows short-term rentals like Airbnbs
When looking into the possibility of renting out your Surrey presale condo as an Airbnb or another type of rental property, a critical step is to thoroughly examine the strata bylaws associated with your Surrey real estate investment.
It’s important to note that while long-term rentals may be allowed, this does not automatically extend to short-term rental arrangements like Airbnb.
Understanding these distinctions within the Surrey presale condos market is essential for successful property management
#2: Make sure the local laws and regulations do not prohibit short-term rentals
A quick Google search for ‘AIRBNB’ or ‘rental property’ along with your city’s name can provide you with accurate and official information about short-term rental regulations in your area.
#3: Be prepared to spend some money on furnishing the unit
When preparing your Surrey presale condo for Airbnb and rental property opportunities, enhancing the unit with tasteful and attractive furnishings is crucial.
This step is not just about complementing the existing features such as appliances and fixtures but also about elevating the overall appeal of your Surrey real estate investment.
Stylish furnishings play a significant role in attracting the Airbnb market, making your property more appealing to potential tourists who seek accommodations that are both comfortable and visually pleasing in the Surrey area.
#4: Make sure occupancy taxes are handled properly
If you’re investing in Surrey presale condos or engaging in Surrey real estate, it’s crucial to ensure that occupancy taxes are appropriately managed.
For properties in Surrey, especially with Airbnb rentals in presale condos, you may need to collect occupancy taxes directly from your guests if these aren’t included in Airbnb’s fees
#5: Be prepared for unpredictable rents
You do have to keep in mind that Airbnb rents are subject to change on short notice as well, depending on how the market is doing. When you’re renting long-term, your renter is contractually obligated to pay the same rent every month.
This may not be the case with Airbnb, as once the renter leaves, the new renter is not obligated to the previous rent but based on what the market demands now.
#6: Control access to your unit through electronic locks
It is a wise decision to get an electronic lock installed on your Airbnb unit which can be opened with a digital code that can be changed on your end with ease as well. With so many people coming in and out of your condo, you don’t want to deal with physical keys!
#7: Make sure you’re adequately insured against loss
Investing in an electronic lock system for your Surrey presale condo, particularly if it’s listed on Airbnb, is a smart move.
This advanced security feature allows you to control access to your unit through a digital code, which can be effortlessly updated by you as needed.
In the bustling Surrey real estate market, where numerous guests may frequent your condo, eliminating the hassle of physical keys not only adds convenience but also enhances the security of your property.
Condos are very attractive to be the perfect Airbnb rentals including low fixed costs, private units at a reasonable price, perfect locations, and great amenities.
But one must also consider the risks involved with renting your investment condo as a short-term rental. No stability in rents, high furnishing costs, and rules and regulations might limit your ability to operate Airbnb at its fullest potential. But with the knowledge gained from this article, you can make wiser decisions.
At ipresalecondos.com Our goal is to provide you with an enjoyable and seamless buying experience. To that end, we’re constantly working on improving accessibility to the latest presale projects in the city of Surrey, Vancouver, Burnaby, Richmond, Port Coquitlam, New Westminster, and the rest of the lower mainland.
If you want to learn more about what kind of market we are in currently and how to get the most out of it, get in touch with Ravi Bhindi, who has 18+ years of experience in real estate and pre-sale condos. Please call or text at 604-825-8881 or email at firstname.lastname@example.org
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