If you check listings for Toronto real estate you’ll find vacation homes for sale. This is not surprising as Toronto is actually the top tourist destination in Canada. Up to 40 million people visit the city each year. So if you’re a frequent visitor, you may as well get a house there.
At the same time, you may want to maximize the return on your real estate investment by renting out the place to other visitors to Toronto. It doesn’t make sense just to have your vacation home sitting there. At least when you rent it out, it’s making money for you instead of costing you money instead.
But to make this work right, you need to consider the following issues.
What are the Legal Requirements?
To make sure you’re complying with local legal and tax regulations, it makes sense if you consult an accountant first before you decide to rent out your Toronto vacation home through Airbnb. There may be new restrictions in place when you decide to rent out your vacation home.
You’ll also need to figure out the tax situation. If you rent out your place for only a short period of time during the year, you may end up with tax-free income. However, you may not claim deductions for your expenses. If you do pay taxes on your income, you may claim deductions for relevant rental expenses. These can include the utilities, repairs and maintenance on the home, cleaning services, insurance, and even advertising.
Screen Your Guests
At the very least, Google their names so you can have a better idea of what kind of people they are. Ask if they’ve rented out other vacation homes and ask for referrals. You don’t need a bunch of young students throwing a rowdy party in your own home.
Use a Professional Cleaning Service
Part of your job as the landlord is that you need to make sure that your home is clean. Your guests will tear you apart in their reviews when they arrive at a mess in your home during their vacation. So schedule cleaning appointments for your home with a professional cleaning service so that your home can be cleaned before and after your guests stay in your vacation house.
Anticipate Their Needs
You need a bit of empathy and you should put yourself in your guests’ shoes. If you were the tourist, what would you want to see aside from a spotless room? Perhaps you can put in some water and juice in the fridge. Ground coffee will also be convenient to go along with your coffeemaker. Arrange for the place to get the local newspaper every morning. Have some garbage bags stored in the home as well.
Read Lots of Reviews
To get a better idea of what kind of items and services your guests will appreciate, read the reviews submitted by other guests who have stayed in other vacation homes. Note what makes them happy and incorporate those things in your own vacation home. Remember what made them upset, and make sure you don’t have the same issues for your rental.
What about Security?
It’s going to wreak havoc on your reputation if your guests are attacked or robbed while they’re staying at your place. You need to keep your guests safe, and a home security system is an excellent idea. A security system reassures your guests and assuages their worries. Also, such a security system can also protect you if your guests try to steal from you.
It’s true that renting out your vacation home is a good idea. Just make sure to follow all the legal guidelines, while you also cater to the needs of your guests.