ADDING UP THE SUITE LIFE Does having a rental suite help pay for your new home? These case studies and experts will help you do the potential math. By Michelle Hopkins
Thirty-something Megan Hall and her fiancée Tariq Nizam knew the only way they could afford a home in Tofino was to have a so-called mortgage helper, or rental suite. “We bought a 3,000-square-foot house in 2017 with the intention of doing vacation rentals on the upper level,” says Hall. “After spending two months getting the house ready, we started getting bookings right away.” They listed the ocean-view level on VRBO and Airbnb, and from May to Thanksgiving the couple’s weekend bookings were full. They shut down the rental suite to comply with health regulations in the spring of 2020, but when restrictions eased last summer, it was fully reserved again. “We can have up to six guests and we average 200 nights per year,” says Hall. “This income really helps us with our mortgage and also helps with home expenses.”
Similarly, Torontonian Gerry Merz bought a luxury oceanfront home in Nanoose Bay in 2018 with the intention of retiring there in 10 years. After months of renovations, last summer he and his wife opened up their five-bedroom residence to VRBO guests. “We decided to rent it out to help pay for the renovations,” says Merz. “Although the pandemic was a train wreck when it came to rentals, now it has exploded… we
“We can have up to six guests and we average 200 nights per year.” –Megan Hall are fully booked all summer long.” Like Hall and Nizam, Merz has learned through the pandemic that it’s unwise to be too dependent on rental-suite income.
Although banks do not take vacation income revenues into consideration when approving mortgages, for most hosts it may be the savings answer to paying off their home mortgage or having a more comfortable buffer to cover other bills every month. The idea of renting your home out to strangers through an online platform might seem a bit unsettling to some at first. Originally, Amanda Petronis and her husband were going to build a mini house on their Sooke property for visiting friends and family. Before long, that idea morphed into a deluxe treehouse. “It got more extravagant as we went along,” quips Petronis. “The uniqueness of the treehouse appealed to locals, so we thought to help pay expenses, we would open it up to VRBO and Airbnb ... Now, it’s mostly locals from all over the island and
Tofino. Photo: Megan Hall
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