Is Buying Property and Turning It Into an Airbnb a Good Investment in Vancouver?

The idea of buying a property in Vancouver and turning it into a short-term rental like an Airbnb investment is tempting, especially with the city’s strong tourism industry and high demand for flexible accommodations, like Taylor Swift concert. But as many investors have discovered, it’s not quite as simple as buying a condo and listing it the next day.

While short-term rentals can be profitable, there are key factors to consider: local regulations, seasonal demand, upfront costs, and the risks involved. Before you invest in a property with Airbnb in mind, it’s important to weigh the pros and cons and understand how it compares to a traditional long-term rental model.

The Pros of Running an Airbnb Investment in Vancouver

A well-managed Airbnb property in the right location can offer high returns, particularly during the spring and summer months when tourism peaks. Vancouver attracts millions of visitors each year, and many of them prefer short-term rentals over hotels for the convenience, space, and character.

Short-term rentals offer more flexible pricing, meaning you can charge higher nightly rates during busy seasons. Some hosts even earn more in a month than they would from a long-term tenant, depending on occupancy rates. If you manage the property yourself, you also avoid traditional property management fees, giving you more control over your investment.

The Cons and Risks to Consider

Despite the income potential, there are downsides. The biggest? Vancouver’s short-term rental regulations. The city has strict rules around Airbnb and similar platforms. You must have a valid business license and, most importantly, the property must be your principal residence, meaning you can’t legally operate a full-time Airbnb on a second home or investment property unless you live there too.

Enforcement is serious. Fines for non-compliant listings can be steep, and platforms like Airbnb are now required to share data with the city. For investors looking to buy houses in Vancouver, Canada solely for short-term rental income, this makes things complicated.

Short-term rentals also require more hands-on management. Cleaning, guest communication, restocking supplies, and handling maintenance issues can quickly become a full-time job, unless you hire a management company, which eats into your profits.

Airbnb vs. Long-Term Rental in Vancouver Which Is Better?

When deciding between running an Airbnb or choosing a long-term tenant, consider your income goals, risk tolerance, and lifestyle.

Short-term rentals offer the chance for higher returns, especially in the best areas for Airbnb in Vancouver like Kitsilano, Mount Pleasant, and parts of Downtown near the seawall. However, they come with legal limitations, higher turnover, and more time commitment.

Long-term rentals provide stable monthly income, less vacancy risk, and are much easier to manage, especially if you live out of town or prefer passive income. You can rent out condos, laneway houses, or basement suites with fewer regulatory barriers, as long as the unit meets city standards.

For most real estate investors, a long-term rental is a safer, more reliable way to grow equity and generate cash flow in Vancouver, particularly if you’re not planning to live in the home full-time.

What Are the Short-Term Rental Laws in Vancouver?

The City of Vancouver requires all short-term rental operators to be licensed and compliant with zoning regulations. Here are the key rules you need to know:

• You must live in the property as your primary residence.
• You may rent out a room or your entire home while you’re away, but only for a maximum of 30 days at a time.
• A valid business license must be obtained annually.
• Strata bylaws may prohibit short-term rentals even if the city allows them.

If you’re buying a condo or apartment, it’s critical to check the strata’s rules before assuming you can run an Airbnb. Many buildings in Vancouver have restrictions or outright bans on short-term rentals.

Best Areas for Airbnb in Vancouver (If You Qualify)

If you’re planning to live in the home and want to rent it out part-time, some of the top-performing neighborhoods for Airbnb in Vancouver include:

• Kitsilano: Close to beaches, great restaurants, and popular with summer tourists.
• Mount Pleasant: Trendy, central, and popular with digital nomads and young travelers.
• Downtown Vancouver: High walkability, near transit, and in the heart of everything.
• Commercial Drive: A lively, artsy neighborhood with strong local appeal.

Remember, choosing a neighborhood that appeals to your ideal guest, tourists, business travelers, or families. Can make a big difference in your occupancy rates and reviews.

Is Buying a Property for Airbnb Investment Worth It in Vancouver?

Buying a Vancouver property with Airbnb in mind can be a great investment, but only under the right circumstances. If you’re planning to live in the home and rent it occasionally, short-term rentals may help offset your mortgage or generate extra income. But if your goal is to buy an income property and run a full-time Airbnb, Vancouver’s regulations make that difficult unless you’re operating within legal limits.

Before making a move, it’s smart to sit down with a real estate professional who understands both investment strategy and the local rules. At the Ruth & David Group, we help investors find properties that match their goals, whether that means short-term rentals, long-term leases, or a mix of both.

If you’re exploring investment opportunities or want help navigating Vancouver’s rental landscape, we’re here to help you make a well-informed decision.

Contact the Ruth & David Group for expert guidance on real estate investing in Vancouver.