5 Best Areas to Buy Airbnb Property in Ontario, Canada

Ontario is one of the most beneficial provinces in Canada for Airbnb investors. It offers a ton of opportunities for aspiring entrepreneurs and has a variety of locations to choose from. The short-term rental industry in this province is developing rapidly, creating perfect conditions to establish a thriving business. However, choosing the city within the province is also crucial for the performance of the enterprise.

Best Cities in Ontario for an Airbnb Investment

There are many cities in the province that might interest potential investors. However, for this article, only the ones that offer the most potential were selected. There, the short-term rental markets are stable and consistently-growing, while the revenues are higher than average. These five cities will become great choices to launch an Airbnb business.

Toronto

Expectedly, Toronto has the largest rental market in the province. Even though it has a stunning number of 12,600 properties that are being actively rented out, the market faces a 10% quarterly growth. It implies there is still room for more entrepreneurs who desire to launch a business there. Out of these rentals, 68% are entire homes. On average, an Airbnb in Toronto has 1.6 bedrooms and can host up to 3.9 guests.

The financial metrics in the area are also surprisingly decent, taking into account the intense competition. The Average Daily Rate here is $164, while the Occupancy Rates average 74% throughout the year. There is also a seasonal effect: the rentals are mostly demanded in late summer and early fall. This results in an average Revenue of $1,966 generated by an average property every month.

The market is extremely competitive, especially in highly demanded areas of the city. To stand out from the crowd, it will be necessary to provide a topnotch service and build a positive reputation from the start. For aspiring entrepreneurs, it might be valuable to use professional services of Airbnb Management in Toronto to have a smooth start.

Ottawa

Ottawa is the next major city on the list, although the scale of the rental business is noticeably smaller than in Toronto. This city features a great combination of high demand and moderate competition, making it attractive for investors. The market here is not growing as rapidly as in Toronto, but the performance of existing properties proves the potential of this location.

In total, there are around 1,750 active rentals in Ottawa, 67% of which are entire homes. On average, a rental here can host up to 4.7 guests in 2.1 bedrooms. The ADR here is $124, while the Occupancy Rates are 70%. The hosts here earn $1,658 worth of monthly Revenue on average. The competition is mostly concentrated around the city center, whereas the other areas have few properties available for rent.

Just like in Toronto, entrepreneurs in Ottawa will have to do their best to have a good start, especially in the city center. To guarantee your property a top-quality performance, it might be worth it to seek assistance from professional management companies like Airbnb management in Ottawa.  .

Prince Edward County

Prince Edward County is another town on the shores of the province’s most famous lake. It is much smaller than the previous two cities, but it is developing rapidly, and the demand is steadily growing. It is a perfect place for investors, who wish to benefit from low levels of competition the city offers, while also generating impressive revenues. Luxury cottages here are especially popular: 90% of the properties in Prince Edward County are entire homes. On average, they can host up to six guests at a time.

In total, there are only 830 active listings here. What makes it even better is that they are almost evenly spread throughout the city, meaning there are no specific areas where the competition is concentrated. The ADR here is $302, and the Occupancy Rates average 55% throughout the year. The seasonal effect is pretty strong here, as the hosts earn the largest revenues in August when the Occupancy Rates reach 94%. The annual average monthly Revenue is $3,668 here, which is the best result on this list.

Port Colborne

Port Colborne is a small town near Buffalo that is situated on the shores of Lake Erie. The situation here is similar to Prince Edward County. The only difference is that the competition here is even less intense. In Port Colborne, entire homes absolutely dominate the market, as 99% of the listings fall in this category here.

In total, there are only around 150 operating properties here. They have 2.4 bedrooms and can accept 6.6 guests on average. The ADR averages $256 in Port Colborne, although there is a strong seasonal effect. The same applies to Occupancy Rates which average 52% throughout the year but may reach up to 90% in August. The average monthly Revenue is $2,706 here, which is significantly higher than average in the province.

Kawartha Lakes

Kawartha Lakes is the last city on the list, and it also offers the hosts a long list of benefits. The main of them is, once again, the mild competition even in the most demanded areas. It is a place where visitors come to reside in cottages or even mansions: some of the existing properties are truly luxurious.

In total, there are around 650 active listings here. The properties are scattered around the area, so the competition is mild everywhere. In Kawartha Lakes, 96% of listings are entire homes. On average, they have 3.3 bedrooms and can host up to 8.3 guests at a time. The ADR is $310 here, while the Occupancy Rates average 43% throughout the year. It allows the hosts to earn $2,902 worth of monthly Revenues on average.