Every year, over 18 million international tourists visit Canada and millions more Canadians travel to domestic destinations. If you live in one of Canada’s major metropolitan areas or near some of Canada’s top wilderness destinations, you might be able to cash in on your home town’s tourism industry. Short term rentals like Airbnb have opened up opportunities for millions of homeowners and renters to add to their income by renting out a room or their entire home on a short-term basis. In 2017, more than 100 million stays worldwide were booked through Airbnb and it now boasts more listings than the top 5 hotel brands combined.

 

Becoming a short-term rental host is a great way to turn your guest room or basement into a source of income. Just make sure you know what you’re getting into before you list your space or you invest in turning your guest room into a welcoming place for tourists.

 

#1 Look into Local Regulations

 

The days when app-based companies like Airbnb and Uber went entirely unregulated are coming to end and regulations by-and-large are coming from municipalities. Where you live will be a major factor in the regulations you have to follow. For example, Torontonians using Airbnb now have to pay the city a small licensing fee and they’re only allowed to rent out space in (or the entirety of) their principal residence. In Ottawa, council is still considering recommendations.

 

#2 Find Out Your Earning Potential

 

Airbnb paints a rosy picture about your potential earnings. There are a lot of factors that will change how much money you could make. You can charge higher prices for bigger spaces and more luxurious accommodation than other hosts around you, but first you need people who want to stay in your neighbourhood. The website AirDNA lets you look up your address and find statistics on the short term rental market in your area.

 

#3 Decide What Kind of Host You Want to Be

 

There are many different kinds of people who become Airbnb hosts. Some just want to generate a bit of extra income, some want a constant revenue stream that can contribute to their retirement or paying down their mortgage, and others use Airbnb to launch a small bed and breakfast business. The types of guests you have and how much you can charge for accommodations will depend on your business vision. Plenty of budget travellers are happy with a private room where they can rest their heads after a day of exploring while higher-end travellers might be looking for that bed-and-breakfast experience.

 

#4 Renovate Your Guest Room

 

Once you’ve got a vision, now you can renovate your guest room. If you only want to be an occasional host or your neighbourhood is popular with younger travellers, a new sofa bed is a flexible way to make sleeping accommodations in a guest room or living room. For higher end accommodations, a queen size bed and 100% Egyptian cotton duvet are a great place to start.

 

Your extra room has the potential to earn you a stable source of extra income. It’s easy to take advantage of tourism in your local area.