Short-Term vs. Long-Term Rentals in Calgary & Edmonton

Investing in rental properties in Alberta can be highly rewarding, but the choice between short-term rentals like Airbnb and traditional long-term leases is not always straightforward. Calgary and Edmonton each have unique market conditions that influence financing, regulations, and income potential.

Downtown Edmonton is a strong rental market for investors.

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Differences in Financing

Securing a mortgage for short-term rentals is different from financing a long-term investment property. Lenders often see short-term rentals as higher risk, which can affect approval and rates.

• Short-term rental mortgage Alberta: Lenders may require larger down payments and higher credit standards.

• Long-term rentals: More predictable cash flow makes financing easier with standard investment property mortgage products.

• Refinancing to access equity for a rental purchase is also an option. Learn more in this guide on refinancing your Calgary home.
  

Regulatory Considerations

Both Calgary and Edmonton have implemented rules around short-term rentals. Understanding these before you purchase is essential.

• Calgary: Operators must register their property, carry insurance, and comply with fire and safety codes.

• Edmonton: Hosts need a business license and must follow zoning bylaws, including limits on the number of guests.

• Long-term rentals: Governed by the Residential Tenancies Act of Alberta, which sets out landlord and tenant rights.
  

Income Potential

The income opportunity between short-term and long-term rentals varies based on neighbourhood, demand, and seasonality.

• Short-term rentals (Airbnb vs long term investment Calgary): Can deliver higher returns during peak tourism or event seasons but may fluctuate during slower months.

• Long-term rentals: Provide steady, predictable monthly income with lower turnover costs.
  

Neighbourhood Examples

Calgary

• Downtown and Beltline – popular for professionals and visitors

• Bridgeland and Inglewood – trendy areas with strong short-term rental demand

• Suburbs like Evanston or Seton – better suited for long-term family rentals
  

Edmonton

• Downtown and Oliver – attract short-term renters attending conferences and events

• Old Strathcona – strong Airbnb demand near Whyte Avenue entertainment district

• Terwillegar or Windermere – stable long-term rental neighbourhoods for families
  

Final Thoughts

Both short-term and long-term rentals in Calgary and Edmonton offer potential, but success depends on your financial goals, tolerance for risk, and ability to manage regulations. Aligning your mortgage strategy with your investment approach will help maximize returns.

Calgary offers diverse rental opportunities, from downtown condos to family-friendly neighbourhoods.

Looking to finance or refinance your investment property? Contact Tina Kha today to explore the best mortgage solutions for your rental strategy in Alberta.

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