How to become an Airbnb host in Canada

Starting an Airbnb business in Canada is an amazing opportunity to boost your income. With rising consumer prices, it's a smart move to consider. According to Airbnb, new hosts in Canada have earned a whopping $6 billion since the start of the COVID pandemic. As of April 30, 2021, the average annual earnings per host who had welcomed at least one guest during the preceding year was $9,600.

What is Airbnb?

Airbnb is a popular vacation rental website that allows Canadians to rent out their homes and provides travelers with a wide range of non-hotel vacation accommodations across Canada. It is one of several online platforms that connect hosts offering their properties for rent with holidaymakers seeking unique vacation homes or rooms. Other major players in the industry include VRBO, Expedia, and Booking.com. With over 4 million hosts on the platform who have collectively earned more than $110 billion, Airbnb continues to have a significant impact on the industry.

Airbnb serves as a community network that simplifies the process for vacation rental owners to list various types of properties, from entire homes to private rooms, shared spaces, and even distinctive accommodations like yurts, castles, tiny houses, or any imaginable lodging option. The vacation rental industry has experienced explosive growth in recent years, fueled in part by the pandemic, which has dramatically influenced how people travel.

This travel revolution has created new opportunities for hosting anytime and anywhere. The rise of remote workers and digital nomads has led many travelers to seek authentic local experiences and the flexibility to extend their stays at holiday destinations. For property owners with spare rooms or vacant holiday cottages during certain months of the year, starting an Airbnb business in Canada can provide a stable source of income.

How much does it cost to become a Canadian Airbnb host?

Becoming a host and listing your space or experience on Airbnb is absolutely free. However, once you start receiving bookings, Airbnb charges a modest fee of 3-5% per booking.

Alternatively, for a slightly higher cost, you have the option to engage the services of a professional management company like Stay and Away. With pricing plans starting at just 10% per booking, they offer a comprehensive solution to enhance your hosting experience.

How do you create a listing on Airbnb Canada?

Creating a listing on Airbnb Canada is just the first step. While the Airbnb platform is user-friendly, there is an art to crafting a successful listing. With fierce competition, it's crucial to carefully consider the overall landscape before blindly uploading your listing.

Take time to reflect on your rental goals and how you can set your property apart from others in the same area. Study competitor posts, prices, and photographs to envision how you can position your rental uniquely to attract potential guests. At Stay and Away we offer professional photography and copywriting to ensure your listing stands out from the competition, best of all this service is completely free with a minimum term contract.

How to set rates for your Airbnb in Canada?

When starting your Airbnb in Canada, you have the freedom to determine the pricing of your listing. You can adjust your rates based on the day of the week or the time of year. As you gain experience, it is important to develop a pricing strategy that considers factors such as seasonality, location, competitor rates, industry trends, and your own goals.

For instance, if your property is located near a major tourist attraction, such as a national park in Canada or in one of the bustling cities popular for city breaks, it would be appropriate to charge a higher rate compared to a property situated in a remote area.

At Stay and Away, we provide dynamic pricing tools as part of our services. These tools automatically adjust your listing's rates based on demand in your area, seasonality, and other relevant factors.

How much does Airbnb charge hosts in Canada?

The amount that Airbnb takes in Canada varies depending on the fee structure selected by the host. There are two payment options: split-fees and host-only fees. Split-fees are subtracted from the host payout and also charged to guests. On the other hand, host-only fees are exclusively imposed on guests, commonly ranging from 14-16%.

What are Airbnb taxes in Canada?

Understanding the tax rules is crucial for ensuring the success of your Airbnb business. In Canada, it is mandatory for all Canadians to report their Airbnb income to the Canada Revenue Agency. Income generated from accommodation sharing must be reported for tax purposes.

In Canada, most Airbnb income is classified as rental income, which refers to the money earned from renting out a property that you own or use, even for a short period, such as 2 days or nights.

You can deduct reasonable rental expenses incurred to earn rental income, so it is important to maintain a detailed record of these expenses.

As an Airbnb host in Canada, you may be required to charge GST in certain circumstances, particularly if you rent your home on a short-term basis for less than 30 continuous days. If you have not registered for GST, your Airbnb is not obligated to collect GST from guests. However, if you are a GST registrant, you are responsible for collecting and remitting GST/HST.

What are the Airbnb rules for Canada?

Depending on the location of your property, there may be requirements at the state, city, or property level. These could include registration, permits, licenses, safety certifications, and additional insurance.

Stay and Away Vacation Rental Management is here to assist owners in determining the necessary licenses and obtaining the appropriate insurance for their short-term rental properties.

Disclaimer: This post, including any claims or statements within, is solely from Stay + Away and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.