What’s the best condo investment in Montreal for a short-term rental strategy?
On a buy and hold strategy, one of the most profitable way to make money is the short-term rental strategy meaning that you will rent your place daily, weekly or monthly to business travelers, tourists or friends who will need a place in Montreal.
If you are currently looking for a real condo investment that makes real money, then you must check the iQuartier project located at the corner of Saint-Laurent and Sherbrooke.
In this blog post, we will go through the location, the project and the numbers.
Location first, Saint-Laurent as “The Main”
If you are a Montreal lover, you already know that everything happens there in the summer time with Grand Prix, Mural Festival, Mix’Arts Festival and many many events.
“About Montreal” also referred Saint-Laurent as “The main” and one of the city’s most important cultural and commercial thoroughfares.
Chunks of St. Laurent Boulevard are covered with popular tourist attractions equally appreciated by locals, if only for the rich selection of no-frills dive bars, hot nightclubs, restaurants, and cultural venues in the context of a refreshingly bilingual, even multilingual landscape, where neither French nor English truly dominate the area. About Montreal
Why iQuartier is the best condo investment in Montreal for short-term rental?
- It offers you to rent your unit when you are not there. There is no other project that offers this kind of service because all the condos does not allow short term rental. iQuartier is attached to Hotel 10 and all the residents could use their services “à la carte” and pay a property management fees. They will do everything for you from marketing, reservation and cleaning.
- It is the cheapest micro condo in Montreal we’ve ever seen so far with a starting price of only $155,500 + taxes for a studio that could look like a junior bedroom if you are a bit creative. You can see the floor plan on our selection of studios in Montreal, and you will realize that this is definitely a DEAL when your studio will only cost less than $1,000 per month to keep.
- You can take advantage of a progressive payment since it will only be ready in summer 2017. That means that if you don’t have 20% ready tomorrow, you can pay it 10% now and 10% later.
The numbers makes total sense
When someone is looking for a temporary place to rent, they automatically compare the others place in the same location. The first place that will come first in their mind is Hotel 10 which is right around the corner and attached to the place.
We made a quick research for 1 night in June 2016 and it will cost them $254/night + taxes at the Hotel 10.
Potential rental income
We assume the we will do the rental ourself without using the property management. Because you don’t offer breakfast neither the same service than the hotel, let’s say you are offering this place for only $149/night + taxes.
Because this is the first time you are doing this, we will have a conservative scenario with only 50% of the month booked which gives you a $2,235/month + taxes.
The total monthly income would be $2,235/month for 50% booked.
If you missed our last post, here is the breakdown again :
- $902/month for mortgage, insurance, taxes and condo fees (see how we calculated here)
- $25/month of hydro
- $100/month of Internet and cable TV
- $125/month for furniture on a 2 years amortization that gives a good $3,000 furniture budget
- $250/month as cleaning fees (which is a lot)
The total monthly cost is only $1402/month.
For 50% booked, it will gives a monthly net profit in your pocket of $833 or a $9,996 net profit per year.
You basically offer a brand new place, fully furnished with kitchen AND balcony that the competition does not offer by making money every month.
I want to book this unit fast
We discussed yesterday with the developer and we can tell you they are already 30% sold without doing any marketing. Contact us now to make 10K per year.