So, you’d like to know exactly how much revenue your new Canmore Lifestyle Property will put into your Piggy Bank. Well, that depends. Location? Size? Furniture? Fixtures? How often would you like to use it yourself? Is it downwind from the sewage treatment plant (the area lovingly referred to as “Dowisetrpla”)? Does the neighbour shake an angry fist at everyone with a suitcase? Yeah … that’s a factor.
Oh No … where to start! Don’t worry, we got this. We’ve been collecting data and analyzing the Canmore Short Term Rental Market since 2005. Yeah … it’s a lot of data to sift through, but there is so much good information hidden in those spreadsheets! And even more knowledge rumbling around our craniums. We’ve got quite a bit of Hot Gossip on the various buildings, Zoning Issues, and more. So you’ve come to the right place.
How can I get a Canmore Short Term Rental Market Analysis?
We prepare Market Analyses for our Management Clients. And yes, you can become one of our clients prior to owning a unit. In fact, it is better for both of us if you call us before you call a Real Estate Agent. We can save you oodles of time, money, and frustration.
We know it seems weird to hire your Short Term Rental Manager *before* you own a unit, but the most successful Unit Owners have done it this way. It is the best way to know what you’re getting into before you get into it.
How can I get a Canmore Short Term Rental Market Analysis if I’m not a Client … yet?
About once a month, we prepare a Basic Market Analysis of a current listing available in Canmore. It’s usually a brand new listing, a listing that is full of potential, or a new building. It is only released to our New Buyer Email List. The email also contains random musings of the things we think New Buyers should know. Definitely worth the time if you are completely new to Lifestyle Investments. It’s also a nice way to get to know our team prior to joining us as a Management Client. If you don’t like humour, sarcasm, and Movie Quotes, we are probably going to drive you nuts during the 5-10 years we are managing your property. Best to figure out early if you’d like us to be in charge of your investments.
Contact us to get on the list.
What’s in the Basic Canmore Short Term Rental Market Analysis?
THE UNIT: A general description of the size and location of the unit. We don’t release the address or Purchase Price because we our Management Clients pay for that information. We don’t want every email subscriber competing with our Management Clients to buy the same property. It drives up the price.
GROSS INCOME: We use our oodles of real historical Canmore Short Term Rental Data to determine a Low, Middle, and High Income Forecast. And then we take the average. We recommend that New Buyers budget for the “Low”, reasonably expect the “Mid”, and be uber-excited when we hit the “High”.
AVERAGE DAILY RATE: High Season Nightly Rate are much higher than Low Season Nightly Rates (go figure). ADR gives us the average so that we can compare apples to apples.
OCCUPANCY: Again, we use the super valuable historical data to determine a Low/Mid/High Occupancy Level. And then we take the average.
EXPENSES: Well, there are a lot of expenses to consider when owning a home. And it is important to consider all of those expenses *before* buying a property because it’s very difficult to change your mind. We tend to over-estimate expenses so that we don’t have any surprises down the road. Here is the lengthy list of what we take into consideration …
Mgmt Fees: Whether you hire a us, or decide to do it all yourself, this expense needs to be included. And so it is. Before you are tempted to manage it yourself to save a few sheckles, read this.
Condo Fees: Condo Fees include a whole list of what is included, unique to each building.
Property Tax: We check the Property Assessment and current Mil Rate
Insurance: We base this on the average insurance cost for similar properties. It should be checked with your Broker, as everyone has different insurance rates
Maintenance: There will be some years that there aren’t any Maintenance Costs, and other years that everything goes at once. We allocate some money in each budget so that a big future bill doesn’t turn a good investment into a terrible investment.
Housewares: Stuff breaks, or needs upgrading.
Utilities: Electricity, Gas, and Water. Based on averages from similar units.
Internet: High Speed Internet
Television Service: We have a Bulk License available to our clients at $20/TV.
Miscellaneous: A wee bit set aside for the things we cannot foresee, or expenses that don’t easily fit one of the regular categories.
MORTGAGE PRINCIPAL AND INTEREST: We calculate this using the Full Purchase Price of the unit. Why? Because even if you use your own funds for a big down payment, or use your own cash to fund the entire deal, you would want to have a return on the Cash that you have locked up. And in most cases, you are better off using OPM (Other People’s Money) instead of using your own cash. Leave your cash invested somewhere.
CASH FLOW: Gross Income minus Expenses minus Mortgage Payments. This number is going to be a Negative Number for the first few years … and that’s OK. Read about Negative Cash Flow in Real Estate Investing.
TOTAL PAID: The grand sum of the Negative Cash Flow in the first few years. Forget what you believe or have heard about Negative Cash Flow. It’s not that bad when compared to the alternative (not investing at all).
ACTUAL PAID: Total Paid minus Principal Payments. Let’s say that a property had $7500 in Negative Cash Flow in the first year, but it had $7500 in Mortgage Principal Repayments. You haven’t actually lost any money. You have simply moved the money out of your Bank Account and into your Real Estate Assets Account. The money still belong to you — you just don’t have access to money until you sell the property, or refinance the property.