Tips for Purchasing a Vacation Rental Investment Property in Canmore
Purchasing a short-term rental investment property in Canmore can be a lucrative venture, but it's essential to understand the local market, zoning regulations, and economic factors before diving in. This guide will provide you with valuable tips to navigate the process successfully.
1. Understand Zoning and Bylaws
Zoning Regulations: Canmore's zoning regulations dictate where short-term rentals are allowed. Before purchasing a property, check the specific zoning designation and ensure it permits short-term rentals. The Town of Canmore has various zoning districts, and each has its own set of rules regarding the use of properties.
Bylaws: In addition to zoning, Canmore has bylaws that govern short-term rentals. These bylaws can include restrictions on the number of guests, noise regulations, and parking requirements. Familiarize yourself with these bylaws to avoid potential fines and ensure a smooth operation.
2. Analyze Tourism Statistics
Visitor Demographics: Canmore attracts a diverse range of visitors, including outdoor enthusiasts, families, and couples seeking a romantic getaway.
Tourism Trends:
Total visitor spend in Canmore Kananaskis in 2023 reached $723 Million.
Canmore’s purpose built short-term rental units provide local businesses with an approximate visitor spend of $26.5 million on our retail, restaurants and activities.
In 2019, Canmore welcomed approximately 1.4 million visitors, a number that has been steadily increasing year over year.
The town's proximity to Banff National Park, which attracts over 4 million visitors annually, boosts Canmore's tourism appeal.
Length of Stay:
The average length of stay for visitors in Canmore is around 3-5 nights, with many opting for extended weekends or week-long vacations.
Summer months (June to August) see the highest occupancy rates, with winter (December to February) also being a peak season due to skiing and snowboarding activities.
3. Consider Canmore’s Economic Factors
Real Estate Market:
Canmore's real estate market has shown a consistent upward trend, with property values appreciating by approximately 5-7% annually over the past decade.
As of 2023, the average home price in Canmore is around CAD 1.1 million, reflecting its desirability and investment potential.
Economic Stability:
The tourism and hospitality sectors are the backbone of Canmore's economy, contributing significantly to local employment and business growth.
The town has a low unemployment rate of around 4.5%, indicating economic stability and resilience.
Employment and Income Levels:
Canmore has a median household income of approximately CAD 105,000, higher than the national average, which contributes to a strong local economy.
High employment rates and income levels provide a stable environment for property investment.
4. Why Visitors Choose Canmore
Natural Beauty: Canmore is renowned for its stunning natural landscapes, including the iconic Rocky Mountains, pristine lakes, and lush forests. Visitors are drawn to its picturesque scenery and outdoor activities such as hiking, skiing, and wildlife viewing.
Proximity to Banff: Located just a short drive from Banff National Park, Canmore offers a quieter, less commercialized alternative to Banff while still providing easy access to the park's attractions. This proximity makes Canmore an attractive base for exploring the wider region.
Vibrant Community: Canmore has a vibrant arts and culture scene, with numerous galleries, festivals, and events throughout the year. The town's welcoming atmosphere and strong sense of community enhance its appeal to visitors looking for a unique and enriching experience.
Dining and Shopping: The town offers a variety of dining options, from cozy cafes to fine dining restaurants, as well as boutique shops and local markets. These amenities add to Canmore's charm and provide visitors with plenty of options for entertainment and relaxation.
Final Thoughts
Investing in a short-term rental property in Canmore can be highly rewarding, provided you conduct thorough research and understand the local market dynamics. By considering zoning regulations, analyzing tourism statistics, and evaluating economic factors, you can make an informed decision and capitalize on Canmore's growing popularity as a tourist destination.
At WestNest, we're here to support you every step of the way, offering expert property management services to ensure your investment thrives. Reach out to us to learn more about how we can help you succeed in the Canmore short-term rental market.
