What are the differences?
The terms "short-term rental" and, even more so, "medium-term rental" are relatively new in the vocabulary of Montreal's real estate market. These words have been used earlier to refer to cottage rentals and were more often preceded bythe words "weekly rental" or "monthly rental."
However, as websites like Airbnb started coming to the fore, the simplification of the term "short-term rental" has become an accepted definition equated to "It's an Airbnb. So, what's the real difference between the so-named classic "long-term rental in Montreal" and these new terms: "short-term rental" and "medium-term rental"?
1. Short-Term Renting
It is also known as tourist rental, which ranges from 1 night to 1 month, with most of the time between 1 night and 1-2 weeks. The most famous platform is indeed Airbnb, but one can find furnished short-term apartments also on more general sites like Booking.com and VRBO, to mention many interesting ones.
In Montreal, the rental of an apartment with furniture for short periods is strictly controlled. For night-to-night rentals, you need permission from the CITQ: Quebec Tourism Industry Corporation. In recent years, Montreal has clamped down on short-term rentals with ever more restrictions in a bid to lessen the impact on locals and reduce competition with hotels that stand to bring in more revenue for the city and government.
In March 2023, a fire in an illegally Airbnb-rented apartment killed seven people. That incident led to crack downs on illegal and non-compliant rentals.
This means that within a few months, the total number of short-term rental apartments, from over 10,000, has decreased to only a few thousand. This has left tourists with fewer of these options, leading to high rises in prices in Montreal.
Since short-term rentals are offered by the night, their cost is much higher, compared to medium-term rentals, due to nights that the property is not occupied, plus the high cleaning, maintenance, and guest management costs.
Interesting fact: Sometimes, renting a furnished apartment for one month is cheaper than booking a short-term rental for one week.
2. Medium-Term Rental (1 to 12 months)
Many people visit Montreal for a medium-term stay, ranging from 1 to 12 months. They require a furnished apartment with flexible lease terms regarding the duration. They also include a number of interns, trainees, temporary work contract workers, new comers who need transitional housing while looking for a long-term rental, exchange students, visiting parents staying for several months with their children, victims of disasters, and those undergoing major renovations.
Regarding the legislation, medium-term rentals are less regulated, but that will depend a lot on the neighborhood and the exact use of the building. While the short-term rental prices will be close to those of hotels, medium-term rentals will be closer to the long-term, but with a little more to account for wear and tear on the furniture and equipment provided.
The medium-term leases are generally much more flexible, often being month-to-month, but usually require advance notice to terminate.
3. Long-Term Renting (over 12 months)
This is the most rigid rental agreement, hence the least flexible, for both landlord and tenant. Both parties are then subject to the Residential Tenancies Act of Quebec, relating to the binding strictness regarding rent increases, lease termination, and rights and obligations of tenants and landlords. Unlike several short-term and medium-term rentals, most of the long-term rentals in Montreal come unfurnished, while most of them don't come with appliances. Please note that apart from the rent, you will need to pay for Hydro Québec heating, electricity, and Internet service.
Long-term rentals should only be arranged remotely with meeting the tenant or landlord in person. Landlords need to check the financial stability of a tenant, as long-term rentals have their dangers, which include rowdy or noisy tenants who may not even pay their rent. They are also vulnerable; they may not be used to the neighborhood or the neighbors, let alone the possible hidden defects in a residence, like various plumbing problems. Because of these factors, people who relocate to Montreal from abroad for a long-term stay often prefer to seek out either short-term or medium-term rentals first.
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