A friend of mine recently mentioned he was thinking about buying a vacation condo in Canmore. He’d spent a weekend there and couldn’t believe how much some hosts were charging per night. His idea was to pick up a unit and rent it out on Airbnb and VRBO. Like many who are curious about creating passive income streams, he found hundreds if not thousands of videos on youtube, ensuring that success was just about finding the right location.
There are situations where this kind of investment works out, but it’s not always as straightforward as it looks at first glance. Once you factor in condo fees, regular upkeep, cleaning between guests, higher interest rates on secondary properties, and the general stress of running a short-term rental, the margins can shrink fast. It’s also worth remembering that local regulations are getting tighter. Municipalities across Alberta – including mountain towns – have been putting more rules in place, and you’re always vulnerable to sudden policy changes that can cut into income or limit your ability to rent at all. Many towns in British Columbia for example have already adopted policies that only allow home owners to rent their properties as short term rentals for 90 days per year. It is extremely important to do your research into the local zoning bylaws in the area you are looking to buy. Thoroughly reviewing the condo documents (when applicable) and even taking it a step further by asking permission from the condo board, could save you thousands and potencial heartbreak.
On the other hand, if it’s somewhere you genuinely love spending time and the goal is simply to offset part of the cost rather than build a major revenue stream, that’s a different conversation. In that situation, the personal enjoyment and lifestyle perks might matter more than the financial return, and the investment can still make sense for the right person.
