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 firstname.lastname@example.org 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 already has some really good educational institutes like SFU & KPU that attract lots of local as well as international students.
Apart from that, the University of British Columbia (UBC) has purchased a 6.13 Acre lot for $70-million at Fraser Highway & King George Boulevard.
With so many students moving to Surrey from all over the country and even the world, the demand for housing is only going to increase.
Having your presale condo converted as a short-term Airbnb rental can cater to this growing need.
Many international students that come to Canada have trouble finding places to rent right away and Airbnb’s getting more and more popular among young students.
Reason #5: Vast career opportunities in the city of Surrey
The City of Surrey is slated to be one of the largest cities in Canada in the next 10 years.
Many immigrants as well as Canadians from all parts of the country are coming down to Surrey in search of promising career prospects.
This increase is also bringing up the demand for housing but the supply of economical housing does not make it break even.
For this reason, an Airbnb rental can benefit both you as the landlord and the new BC residents who can rent out your Airbnb while they look for more permanent housing.
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
It is important to check with your condo strata bylaws. Even if you’re allowed to rent out your condo to long-term rentals, does not mean your condo association would automatically permit short-term rentals
#2: Make sure the local laws and regulations do not prohibit short-term rentals
A simple google search about “short-term rentals” or “short-term lodging” in your city can get you the information you need from official sources.
#3: Be prepared to spend some money on furnishing the unit
A presale condo usually comes with a lot of features like appliances and fixtures. But if you want to convert the unit into an Airbnb rental, you would have to furnish the unit with good and aesthetic furnishings so that it is attractive to potential tourists.
#4: Make sure occupancy taxes are handled properly
Depending on you’re condo location, you might have to collect occupancy taxes from your Airbnb renters. Airbnb may not have these included in their fees, so in that case, you have to collect these yourself.
#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
Preparing for the worst is a good way of going about an Airbnb rental, due to so many variables involved. Airbnb also provides a “Host protection” insurance, which covers damages up to $1 million.
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 email@example.com