Looking for a ski chalet investment property in Collingwood and The Blue Mountains? Here’s what you need to know.

Welcome to my guide on buying investment properties in Collingwood and The Blue Mountains. These areas offer promising real estate investment opportunities, but success requires more than just a keen eye for real estate and a knack for crunching numbers. Understanding the local rules and regulations is crucial. In this blog, I'll provide practical insights into the specific guidelines governing property investments in these popular ski towns. Knowing the local rules and landscape is essential whether you're a first-time buyer or a seasoned investor. 

So, let’s cut to the real estate chase of buying a ski chalet investment. You can earn money in the rental market in Collingwood and the Blue Mountains in three ways. STA (short-term accommodation, aka Airbnb) seasonal rentals and annual leases. Depending on where you buy, only some of these are allowed. 

Three Paths to Rental Income

Short -Term Accommodations (STAs)

HGTV has inadvertently sparked a worldwide AirBnb obsession. Through shows like "Fixer Upper" and "Income Property," HGTV has unveiled the lucrative world of short-term rentals, transforming ordinary spaces into profitable Airbnb listings. 

Sounds dreamy, right? Especially in a tourist town with Blue Mountain Village nearby, where many people would be looking for a cozy ski cabin with a hot tub or a great big chalet with a chef’s kitchen for a fun weekend with friends. Before you start thinking of all the fun redecorating you will do, ensure you are looking at a property zoned for short-term accommodations. And you will find out quickly that most properties in the area don’t have STA zoning and are not handing out more licenses. 

In Collingwood AirBnb’s are not allowed. Full stop. With this by-law being ignored by many, the town recently approved a new licensing system which will regulate the AirBnb market in the area. Rather than this creating more STAs, the by-law is meant to shutdown all those that are operating illegally. Under the new by-law, beginning February AirBnbs will be allowed in a primary residence or an accessory building that is part of a primary residence. Investors can’t purchase a second property with the intent of renting it out weekend to weekend. Any rentals under 30 days in a home that the owner is not living in full-time are prohibited. If you live there, you CAN  run a bed and breakfast establishment. So unless you want to buy a house you will live in and AirBnb a room or part of your home, you may need to look at other options.

In the Town of Blue Mountains, specific areas of the Town are zoned to allow for licensed STA and Commercial Resort Unit (CRU) use. These zones are generally in the tourist area surrounding and within walking distance of the Blue Mountain Village Resort. There are particular areas, streets and buildings that have this zoning. If you are looking for an investment property with this zoning, connect with a local Realtor who can show you properties with the appropriate zoning and the rules surrounding them. Sadly, I have seen folks coming to this area with an out-of-town Realtor and buying a ski chalet with a plan to do short-term rentals, only to find out they can’t. Ack, can you imagine? 

Seasonal Rentals

Like our private ski clubs, seasonal rentals are a local phenomenon here in Collingwood and The Blue Mountains. Most ski club members commit to an entire ski season here and are looking for a place to hang their skis and call home for the winter. Seasonal rentals are allowed in both Collingwood and The Blue Mountains. Unlike STAs, they do not require special zoning and licenses but must be at least 30 days. 

The key lies in the location when considering an investment property for seasonal rentals. Proximity to private ski hills is not just a nice to have; it's a game-changer. Imagine the quintessential ski chalet ambiance—picture yourself decorating and envisioning après-ski drinks by the fire, a bubbling hot tub, and, for extra charm, bonus points for a mudroom equipped with boot dryers.

To qualify as a seasonal rental, your chalet must become a second home for your renters. Ensuring they provide proof of a primary address is essential. Particularly in the winter, seasonal rentals near the ski hills are bound to be highly sought after. However, the dynamics shift in the summer, contingent on the location. Conversely, a waterfront home is perfect for summer rentals but might need help attracting winter tenants depending on its distance from the ski hills.

Seasonal rentals are a boon for homeowners who are snowbirds or frequent travellers. Whether it's a primary or secondary residence, you can capitalize on seasonal renting when you jet off to warmer or more exotic destinations. It's the perfect way to maximize the potential of your property and turn it into a lucrative asset.

Annual Rentals

Annual rentals are traditional leases governed by the Residential Tenancy Act (RTA). There are no special licenses or zoning required, but there are a lot of rules that a landlord must understand. When you buy a property to lease it, the tenants use your property as their primary residence. The most significant consideration when purchasing a home you intend to lease (other than if it will be profitable) is attracting good tenants. It’s vital to conduct your due diligence before signing a lease. Credit checks, employment letters/references and personal references are critical. Knowing both the rights of the tenants and the landlord is also very important. 

The Road to Prosperity

Buying investment properties in Collingwood and The Blue Mountains is a great way to grow wealth through real estate investing. Unlike other investment forms, real estate offers tangible assets that tend to appreciate over time. You can benefit from both property value appreciation and rental income by carefully selecting properties in high-demand areas that meet your investing goals. With the help of a local realtor who understands the real estate and rental market, you can navigate the complex world of real estate investment leading to a prosperous and secure financial future.

In conclusion, delving into ski chalet investments in Collingwood and The Blue Mountains demands a nuanced understanding of local regulations and a strategic approach tailored to the unique dynamics of these sought-after ski towns. Whether you're drawn to the allure of short-term accommodations, seasonal rentals, or traditional annual leases, success hinges on carefully considering zoning regulations and property location.If you are intrigued by the potential of real estate investments in this picturesque region, navigating the complexities with a knowledgeable local realtor becomes paramount. Let's delve into a more in-depth conversation about your investment goals, preferences, and the intricacies of the Collingwood and Blue Mountains real estate market. We can chart a course towards your real estate investment bliss.