Short-Term Rentals in Canada: Still Worth It in 2025?

Greenell Properties Capital
Sep 8
2 min read

Short-term rentals (STRs) like Airbnb and Vrbo once offered real estate investors a fast track to high cash flow and flexibility. But as we move into 2025, the landscape is changing dramatically. New bylaws, increased operating costs, and shifting traveler patterns have made STR investing more complex than ever.

So—are short-term rentals still a smart move in Canada? Let’s break down the pros, cons, and what it takes to succeed in today’s environment.

Modern skyscrapers with glass facades and curved balconies set against a clear blue sky. Geometric patterns create an urban feel.

1. The Perks That Still Appeal to Investors

Despite headwinds, STRs still offer:

Higher nightly income than traditional rentals
Flexibility to use the property yourself
Tax advantages when structured correctly
Greater asset liquidity with furnished appeal

For the right market and property, STRs can still outperform long-term rentals on cash flow.

2. Major Challenges in 2025

The barrier to entry is higher:

Licensing is mandatory in most major cities
Owners face stricter inspections and compliance standards
Guest expectations are rising—requiring premium furnishings, fast communication, and hotel-level cleanliness

And let’s not forget the volatility of demand—especially during off-season lulls.

Bright bedroom with white bedding, wooden chair, and floor lamp. Glass doors reveal a sunny balcony with trees. Calm and minimalist.

3. Understanding the Regulatory Landscape

Cities like Toronto, Vancouver, Calgary, and Montreal have passed laws restricting STRs to primary residences only, capping the number of nights, or banning them in certain zones.

Failure to comply can result in steep fines—or even forced sales.

Investor Tip: Don’t just ask the realtor—check city zoning maps and STR licensing bylaws yourself before you buy.

4. Where STRs Still Make Sense

Markets with year-round tourism, limited hotel inventory, and STR-friendly bylaws offer the best shot at long-term success.

Examples:

Niagara-on-the-Lake
Whistler
Blue Mountain
PEI coastal towns
Some Alberta ski and golf destinations

Also look to secondary cities with universities or hospitals, where furnished mid-term stays (30+ days) are in demand.

"For Lease" signs in red on a city street, surrounded by green trees and grey buildings under a clear blue sky.

Final Thoughts

Short-term rentals are no longer passive income machines—but they can still thrive if treated like a business. The keys to success today? Compliance, automation, strong local demand, and an investor mindset.

At Greenell Capital, we help investors assess STR opportunities with up-to-date regulation research and detailed cash flow projections—so they go in prepared, not blind.