Financial planners say homeowners eyeing short-term rentals during the FIFA World Cup should treat hosting as a business, not easy extra cash.
The prospect of World Cup visitors has made short-term renting look like a quick way for homeowners to bring in extra money, but financial planners say the decision is more complicated than listing a spare room and waiting for bookings.
Airbnb says that, as of May, people in Toronto could make more than $4,000 per month during the FIFA World Cup. The figure may appeal to renters or owners trying to offset housing costs, especially as bars, restaurants and other local businesses prepare for a surge of fans. But planners interviewed by CBC News said the income comes with legal, tax and practical obligations that first-time hosts can underestimate.
Laura Whiteland, a financial planner and owner of Inclusive Financial Planning in Truro, N.S., said people considering Airbnb, Vrbo, Booking.com or similar platforms should understand that they are entering a business arrangement, not simply making casual use of unused space.
“Like any business, all the money you bring in is not all yours,” Whiteland said. “It’s usually the most dangerous thing to not understand.”
The first step, planners said, is checking whether short-term rentals are allowed where the property is located. Municipal rules vary, and people who live in apartments or condos may also face limits in a lease agreement or condo bylaws. In Vancouver, financial planner Kelly Ho said, operating an Airbnb requires a business licence.
Taxes can also narrow the gap between expected and actual earnings. Short-term rental income may affect a host’s tax bracket, and first-time hosts may forget to set money aside for taxes due the following year. Whiteland said people should not assume they can write off large portions of household expenses, especially if most of the home remains for personal use.
Ho, a financial planner and partner at DLD Financial Group in Vancouver, said homeowners should think of the rental as a formal business. That means looking at liability, speaking with an insurance broker about coverage, deciding who will clean the space and understanding how much time guest communication, maintenance and turnover will take.
“You are now effectively a hotel owner,” Ho said. “If the homeowner decides to run it themselves, then they need to put a value on what their time is worth.”
That time cost can be easy to miss. Hosting may mean adjusting family routines, managing noise or privacy concerns and accepting higher utility use from guests. Ho also noted that short-term rental income can become volatile if a host receives poor reviews, and that changing local regulations can alter the business case after someone has already invested time or money into setting up a rental.
The World Cup is also prompting a wider scramble by local businesses to benefit from visitor traffic while staying within event rules. CBC News reported separately that Toronto bars and restaurants are preparing for tens of thousands of fans, while also navigating FIFA’s strict intellectual property guidelines on how the tournament can be marketed.
For homeowners, the central question is not whether a short-term rental can bring in money, but whether the return is worth the obligations attached to it. Planners say anyone still interested should read platform terms carefully, check local rules and insurance before listing, and calculate the value of their time before treating tournament demand as easy income.
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