Why Airbnb Can Pay Your Mortgage Off Quicker

Homeowners could recoup the purchase price of their homes faster through short-term rentals such as Airbnb compared to a long-term rental strategy.

British real estate firm Nested analyzed home price data from HSBC and the World Bank and average rental costs in 75 global cities which revealed just how much faster short-term rentals can bring a return on investment.

In Canada, Montreal ranks the best. To recoup the cost of an average-priced home ($354,371) would take 273 months at an average rent of $1,296. Short-term rentals would bring in $4,816 per month, recouping the cost of the home in just 74 months.

In Toronto, an average home costing $615,737 would mean renting for 297 months at an average $2,073 rent; with short-term rentals, the cost would be recouped in just 135 months.

Meanwhile, the cost of an average Vancouver home ($865,344) would be recouped in 214 months from short-term rentals compared to 341 months with long-term tenants.

H/T CanadianRealEstateMagazine

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