‘Airbnbust’? Why Canada’s short-term rental hosts are in for a harsh winter

Data show occupancy rates for short-term rentals like Airbnb and Vrbo are cooling in Canada, raising questions for some hosts about if they can afford to keep their properties.

When Tamara Saeed and her husband were looking for a way to save for their children’s education a few years ago, the allure of Airbnb caught their eye.

The family bought a cottage near Grand Bend, Ont., in late 2019, with plans to host the property on the short-term rental platform. They almost second-guessed the move when the COVID-19 pandemic struck, but the waves of Canadians looking to escape the city during lockdowns proved a boon for the new cottage owners.

“It’s been great. I honestly enjoy hosting, it’s just a great way to help people explore an area they might not otherwise have access to. Not everyone can own a cottage,” Saeed tells Global News in an interview.

She recently doubled down and bought a second cottage property in Selkirk, Ont. and has also put it up on short-term rental sites including Airbnb and Vrbo.

But now, with bookings slowing down heading into the holidays, mortgage costs rising and a possible recession on the horizon, she’s wondering whether she might be forced to sell her rental properties.

“It was a great idea and I still think it is. But the fact is things have changed,” Saeed says.

She cites new taxes from municipalities and rising interest rates from the Bank of Canada as hurting the business case and earning potential for her cottage properties.

Inflation is also drawing down revenues amid higher costs for cleaners and maintenance crews who rely on the cottage industry.