1. Thinking About Tax Implications
You have to consult with your Accountant before taking the leap in buying a vacation rental. You will need to ponder about how the potential rental income less the applicable expenses are going to affect you or the taxation implications for your company. Short-term vacation rental possessions may be viewed as commercial businesses. Taxation issues are complexed, and it will be beneficial to have your Accountant guide you on how it will impact you before you do anything.
2. Evaluating Strata Rules & Regulations
If your property forms part of a strata, it is quintessential that you evaluate the rules and regulations to make sure that you are permitted to use it for short-term rental. You also need to have a look at everything else contained in the strata documentation that may have an effect on your revenue or the proficiency to rent. For instance, if the complex has a gym or pool, and it will be closed due to renovation, it could influence potential tenants. The Strata documents must be reviewed to determine whether short-term rentals are allowed and to unearth any other means that you or your guests might be affected moving forward.
3. Keeping Ahead Of Any Municipal And Provincial Regulations
The low-priced vacancy rates in Kelowna are obliging government entities such as Kelowna city council to upsurge the regulation of short-term rentals since these rentals sadly exhaust long-term rental supply for people who need it. People who are looking to rent short-term must take out and pay for a city business license that includes submitting of a good neighbor agreement, parking plan, fire, and safety attestation form and safety and evacuation plan.
4. Drafting A Marketing Plan
You can Airbnb your condo in the Okanagan, or you can contemplate advertising your condo on other internet sites. A well-thought marketing approach will help ensure that you get the highest probable rental rate, great guest reviews, and a lower vacancy rate.
5. Learning More About Your Future Neighbours
Even though the strata and the zoning may allow for vacation rentals, you must think about how the adjacent properties in the complex or building are being utilized. If only a few units are used as vacation rentals, you may find that owners are more likely to complain about your guests. Complexes and buildings that are principally being used for short-term rentals may incur fewer complaints with owners who have the same interests relating to their property.
6. Creating A Budget
Unlike typical unfurnished long-term rentals, a vacation rental property has lots more expenses to think about. The vacation property must be outfitted with furniture, linens, housewares, television, and more. You can review a vacation rental checklist to get an idea of what you’ll be needing. Apart from monthly property taxes and strata fees, you’ll also have gas, internet and electricity bills to consider. Most owners opt for a regular cleaning service as part of their expenses.