Best places to buy vacation rental property in BC, Canada
British Columbia is now one of the most attractive provinces of Canada for launching short-term vacation rentals. Many of its cities are actively developing their tourism industries, and the region has almost completely recovered from the damages of the pandemic.
Benefits of Choosing British Columbia for an Airbnb Investment
British Columbia is one of the most popular Canadian provinces both in terms of internal and international tourism. Millions of people visit the province every year, whether it is a family trip for winter holidays, or a casual visit in summer. The climate is great, compared to the rest of the country, although the demand is still fairly seasonal.
Of course, aspiring entrepreneurs also favor British Columbia for the revenues it offers. As it will be evident in the next section, there are many cities in this province that grant impressive revenues compared to other destinations in Canada.
Today’s list will cover five cities in British Columbia that have great investment potential, but if you need a list of ten, you can find it here.
Best Cities in British Columbia for Launching an Airbnb
Choosing the city is one of the most important parts of launching an Airbnb, and the good news is that British Columbia has quite a few worthy destinations. This top-five list will include the details regarding the market conditions of every city as well as the performance metrics of short-term vacation rentals that operate there.
1. Whistler
Located in the southern part of British Columbia, Whistler is a resort town that is rapidly growing in popularity among tourists. It is surrounded by the mountains and grants any visitor an easy access to beautiful landscapes and outdoor activities.
The short-term vacation rental market of Whistler is fairly large, as there are currently more than 3,100 listings available in the town. Even though the competition is pretty intense, the hosts manage to keep their businesses sustainable, and there is clearly room for more. The vast majority of listings in Whistler are entire homes with one or two bedrooms.
The average daily rate is $505 here throughout the year, while the occupancy rates are at 65%. The average annual revenue generated by an Airbnb in Whistler is $120,000, which is more than in most other locations in Canada.
As with all cities on this list, there is an option to use professional Airbnb management services in Whistler. Companies like https://hearthomes.ca/airbnb-management-whistler/ are willing to take over most responsibilities and chores associated with operating a short-term vacation rental.
2. Tofino
Tofino is located in the very south-west of the province and it is essentially an island of its own. There are currently around 350 active vacation rentals here, and the best part is that they are evenly spread around the city with no large clusters of properties. Most Airbnbs in Tofino are entire home listings with from one to three bedrooms.
The average daily rate in Tofino is $417, while the occupancy rates stay on the level of 70%. On average, a short-term vacation rental in this city generates around $106,000 worth of revenue every year. The city already offers great market conditions, and the demand for Airbnbs is growing steadily, making Tofino an attractive investment opportunity.
3. Kelowna
Located on the shores of the Okanagan Lake, Kelowna is another destination that might be interesting for aspiring investors. There are around 1,700 active rentals in the city, and even though the competition is fairly intense, the market is very stable and has almost completely recovered from the pandemic damages.
The ADR of an average Airbnb in Kelowna is $348, and the occupancy rates average 58% throughout the year. The metrics might not be as impressive as with the previous cities on this list, but rentals in Kelowna still manage to generate around $74,000 worth of annual revenue, which is more than average in Canada.
4. Cultus Lake
Located 100 kilometers east to Vancouver, Cultus Lake is a town built on the shores of a beautiful body of water. The town even has its own waterpark, making it a great destination for families. There are only around 120 active Airbnbs in Cultus Lake, so there is still room for more investors to enter the market.
The average daily rate is $385 here, while the occupancy rates stay on the level of 65%. Much like in most other cities on this list, the demand is rather seasonal in Cultus Lake, as most visitors come here in summer. Nevertheless, local vacation rentals still manage to generate $91,000 worth of annual revenues, and the number is steadily growing at a rate of 4% per year.
5. Squamish
Squamish is actually a fairly similar option to Cultus Lake in terms of its market conditions. The town is also located next to Vancouver, although it is 60km to the north of it this time. The visitors of Squamish have access to the Howe Sound, which comes with the corresponding outdoor activities and sights. The city is home to around 320 active short-term vacation rentals, and the market is rather stable.
The average daily rate of Airbnbs in Squamish is $310, while the occupancy rates are 68%. This enables local hosts to collect $76,500 worth of annual revenue per property on average. The competition is significantly less intense here than in other cities on this list, as the rentals are almost evenly spread throughout the area of Squamish.
Summary
Summing up, British Columbia is a great destination for launching an Airbnb. There are many cities with impressive metrics, where the investors will have an opportunity to establish a thriving business.
