It's the middle of summer, high travel season and if you are visiting Toronto soon, you probably want to where are the best priced Airbnb's I can find. Or if you rent your condo out as a short-term rental Toronto on Airbnb or another platform, or if you are considering buy an investment condo, you wan to know which Toronto neighbourhoods can make you the most about of rental returns.
We look at rents across the city on Airbnb, for a short-term 10 day rental in July and were frankly surprised by the areas that had the high and low rents. The most expensive Airbnb's seemed to be centred around King St West (Fashion District) and down in the entertainment district - these averaged about $300 per night - quite expensive but not a huge surprise. What really shocked us however, is the College and Bay Area Airbnb's which averaged $317 per night! This is a busy hospital area and a lot of people need to stay there to be close to the many facilities nearby - this is unfortunate, but since demand is high for this particular few blocks, it seems so is the price.
If you are looking at condo investments and want to find out what you could earn get in touch and we can do a detailed income analysis for you.
At the lower end, there are pockets around the city, some of them very central, that are quite a bit cheaper. One of the best is Koreatown, it averages just below $200 and it's right downtown. The Danforth has some of the least pricey Airbnb's and it's still along the subway line. The caveat with some of these areas is that since they are less condo-heavy, you may run into older properties and houses that are Airbnb's, so they won't be as modern.
If you are a Toronto property investor, it's important to look at the rental rates before you decide where to buy. While it's important that the area is developing so you get the price appreciation, the rental return is the other big income factor, and not every neighbourhood in Toronto brings in the same rental income. Even within downtown, we were surprised that the financial district area had an average of only $265 while a few blocks south in he Entertainment District the average rate jumped to $289. The purchase prices of condos in these two areas is likely pretty similar, which means your return % would be higher in the Entertainment District. On the other hand, Yorkville which usually has some of the most expensive condos, wasn't among the top in terms of Airbnb rents.