Montreal has one of the largest vacation rental markets in Canada. The city is home to more than 9,300 active Airbnbs, and the market faces a stable quarterly growth of 4%. However, in such a large city, it is absolutely vital to choose a location wisely. Thankfully, there are some neighborhoods in Montreal that offer a huge potential to investors.
Aside from choosing the location, it is also important to deliver high-quality service from the first day of operation. In such a competitive market, it is crucial for the business to get positive reviews from the first guests. The good news is that professional management companies like https://masterhost.ca/airbnb-management-montreal/ are always ready to help aspiring entrepreneurs.
Best Neighborhoods for an Airbnb Investment in Montreal Even though vacation rentals prosper throughout all the areas of Montreal, there are some neighborhoods that are especially beneficial for the hosts. The real estate prices there are high, but the returns on investment are decent for entrepreneurs who have already entered the market. The investors should consider each of the neighborhoods based on their strategy and the target audience they are planning on catering to.
The City Overview
Before moving on to the neighborhoods, it is reasonable to discover the city-wide metrics first. Private rooms are not very popular in Montreal, as 81% of all Airbnbs in the city are entire home listings. Most of them are concentrated around the city center, while the other neighborhoods are not as densely packed with rentals.
The Average Daily Rate in the city is $124 with noticeable deviations between different seasons. The same applies to Occupancy Rates which average 67% throughout the year but may reach 87% in summer and fall down to 41% in winter. In some of the neighborhoods, the effect of seasonality is not so strong, but it still affects the performance of all properties in Montreal.
The average Revenue of a property in Montreal is $1,653 per month. Expectedly, most revenues are generated in summer: the monthly results may reach $2,550 in July, while in January, an average property does not generate more than $925. Airbnb is the most trending short-term rental platform in the city, as 82% of all listings are exclusively posted there.
Plateau-Mont-Royal
Out of around 9,300 Airbnbs that are actively operating in Montreal, 2,000 are based in the Plateau-Mont-Royal neighborhood. Out of these properties, 80% are entire home listings that can accommodate 5 guests at a time and have 1.9 bedrooms on average. Needless to say, the competition in the neighborhood is extremely intense. It is located near the city center, so it expectedly attracts a ton of tourists.
Mile End
Mile End is a small area that is part of Plateau-Mont-Royal. It is famous for its Mediterranean cuisine restaurants and several small parks scattered around its area. It is also the location of Ubisoft Montreal, a famous video game developer studio. The real estate prices are higher than average in Mile End, but the daily rates are compensating for it.
It is also home to a large number of art galleries and fashion boutiques. Multiple Canadian celebrities from different fields have grown here, and many artists reside here to this day. However, the rates have been spiking in recent years, causing a large part of the artist community to relocate from the neighborhood.
Downtown
The Downtown area of Montreal is perhaps the most demanded location in the city. It is the place where the competition is extremely intense and the real estate prices are very high. But at the same time, it is a location that attracts the most tourists and business travelers who are ready to pay increased daily rates for top-quality properties. It is also worth mentioning that the regulations regarding Airbnbs are enforced especially strictly in the Downtown area.
Even though Downtown is the most prestigious and demanded area of the city, the Daily Rates here are not as high because of the intense competition among hosts. In fact, the Average Daily Rate here is $126, which is only $2 higher than in the rest of the city. The main advantage it grants to the owners is the stable flow of visitors and guests.
As in all the other parts of the city, the demand is seasonal here, but the Occupancy Rates are rather stable throughout the year. The hosts adjust their rates for seasons of lower demand to keep the properties busy with guests. The Downtown area is located in the Ville-Marie neighborhood, the short-term rental market of which faces a consistent quarterly growth of 6%.
Griffintown
Griffintown is another small neighborhood located right next to the city center. It is especially popular among tourists who enjoy visiting numerous restaurants and cafes scattered around its area as well as the several parks available within the neighborhood. The Airbnbs are not packing the area as densely as it is in Downtown, but the competition is still rather intense here.
Griffintown is more popular among visitors in summer, and the seasonal effect is stronger here than in some other parts of Montreal. However, the real estate prices are noticeably lower here compared to Downtown. In addition to that, the average daily rates are not as much lower here, so the break-even point is a lot easier to reach for investors.
Old Montreal
The Old Montreal neighborhood is a very desired destination among tourists who enjoy discovering the local culture. It is home to many notable museums and cultural attractions, starting with the famous Museum of Archaeology and History and ending with the stunningly beautiful Basilique Notre-Dame de Montreal.
There are dozens of tourist attractions available in the area of Montreal, and visitors from all around the world come here to discover the history of the city. When launching an Airbnb here, it is reasonable to partner with local tour operators and offer the guests some beneficial services related to exploring Montreal.