Airbnb taking away business from traditional renting in Vancouver

Airbnb seems to be making more profits than its counterpart traditional renting in Vancouver and also highlights the difference between short-term and long-term rentals.

While landlords making use of Airbnb get the chance to make $2,000 a month, landlords making use of the traditional long-term rentals on the other hand cannot boast of such profits.

This is just one way landlords can make more profits in the high priced Vancouver rental market.

According to studies conducted by the British real estate agency Nested, the differences in profit between the short-term and long-term rentals are clearly outlined by reaching a conclusion that with a three bedroom home in Vancouver costing over $1.1 million a landlord making use of Airbnb will be able to rip off the profits of the home in 214 months and this is 100 times more faster than the traditional long-term rentals.

Tom Davidoff with UBC’s Sauder School of Business expressed his surprise as the number of landlords that are able to make profits using Airbnb. However he agrees that it is worthwhile to rent through Airbnb.

Despite the fact that Airbnb is a major hit in Vancouver, it is however not so popular with other cities that were surveyed.

Landlords making use of Airbnb also tend to rent at a faster rate than their counterparts. But last year, the government declared that Airbnb users would have to obtain a license to be able to give out short-term rentals in leading homes in order to increase on the vacancy rate in the city.