Are Long Term Or Short Term Rentals More Profitable in Montreal?

It often happens that many natives of big cities like Montreal have several properties. And some of them are empty. But as the costs of maintaining the property are constantly increasing, some owners are wondering - should I rent out these apartments? This way, not only will maintenance costs be recovered, but even additional income can be generated. In case you have already drawn such a conclusion, then first, you will have to choose a kind of rent. You can choose to rent it out for a short duration through platforms such as Airbnb or real estate portals in your city or seek a long-term lessee.

Numerous factors, including location, rental market demand, regulative restrictions, and your desire for property management, will make one option ideal for your scenario. There are both positive and negative factors for each option. Because of its diversity of tenants in search of short-term housing, visitors, commercial guests, and students, Montreal is a city with a high demand for both types of rentals.

In order to assess whether short-term rentals can work over long-term rentals for rented apartments in Montreal, in this article, the most important factors, such as earnings, expenses, tax breaks, and legal considerations will be examined.

What Is Short-Term and Long-Term Rental?

After defining the two rental models, let's move on to profitability.

Short Term Apartments to Rent

Such furnished apartments in Montreal usually rent for a few days to some months. Frequently used by travelers on business, short-term vacation rental, or temporary relocation. Sites like Airbnb, Booking.com list furnished flats in this category. Sites offering medium term month to month apartments like Montreal-aparthotel do not belong to the short term rentals category and are closer to long term rentals according to the financial model.

Long Term Apartment Rentals

Usually for a period of 12 months or more. These flats serve professionals, families seeking secure housing, and students. Signed leases and monthly rent payments are made by long term renters.

Apartments that are furnished offer an advantage in both situations. A nicely furnished and decorated apartment draws more visitors for short-term, vs long term rental rentals. Tenants who require long-term rentals prefer move-in property, in that it will spare them having to purchase furniture.

Factors Affecting the Profitability of Long or Short-Term Lease in Montreal

To determine which option is more profitable, let’s analyze the main financial aspects.

Income Potential

• Short-term rentals: Higher daily rates. A furnished apartment in Montreal located in a downtown position can earn $120–$180 per night. In peak demand, for instance, during summertime festivities or for larger events such as the Formula 1 Grand Prix, even larger prices can be.

• Long-term rentals: Consistent monthly income. A similar furnished studio in downtown Montreal might rent for $1,800–$2,200 per month. While the nightly rate is lower compared to short-term rentals, long-term leases guarantee steady occupancy.

Occupancy and Seasonality

• Short-term rentals: Strong demand during peak tourist seasons, but potential vacancies during slower months. Winter months (except for the holiday season) often see fewer visitors, affecting occupancy rates.

• Long-term rentals: Steady occupancy, but finding a new tenant between leases can take time. Some units stay vacant for a few weeks, especially during the off-season for student renters.

Maintenance and Operating Costs

• Short-term rentals: Higher expenses include ongoing cleaning, guest turnover, and utility costs (because owners cover electricity, internet, and heat in most scenarios). Additional expenses include providing such items as linens, toiletries, and kitchen items.

• Long-term rentals: Lower maintenance costs, as tenants cover their own utilities and require fewer cleanings. However, furniture and appliances may wear out over time.

Legal and Tax Considerations in Montreal

Montreal has stringent laws regarding short-term rentals, most specifically for residential zone property.

• Short-term rentals require a CITQ permit (Corporation de l'industrie touristique du Québec) and compliance with laws for zoning restrictions. Illegal postings will have severe penalties.

• Long-term rentals are under Quebec’s laws regarding rentals, providing tenants with additional legal protection. Landlords must follow eviction rules and rent control regulations.

Long vs Short Term Apartment Rentals: Pros and Cons

Short-Term Rental: The Upsides

✅ Higher earning potential – Nightly rates are much higher than long-term lease rates.
✅ Flexibility – Owners can use the apartment themselves when it’s not rented.
✅ More control over the property – No long-term lease agreement with tenants, allowing frequent inspections and adjustments.

Short-Term Rental: The Downsides

❌ Unstable rental income – Occupancy rates depend on seasons and local events.
❌ High operating costs – Cleaning fees, utility bills, and repairs add up.
❌ Strict regulations – Failing to obey Montreal’s laws regarding rentals can mean a fine.

Long-Term Rental: The Upsides

✅ Stable monthly income – No seasonal fluctuations or sudden vacancies.
✅ Lower operating costs – Tenants cover utilities and minor maintenance.
✅ Less day-to-day management – No need to handle frequent guest turnover.

Long-Term Rental: The Downsides

❌ Lower earning potential – Monthly rent is lower compared to short-term rental revenue.
❌ Less flexibility – Once leased, the apartment isn’t available for personal use.
❌ Tenant risks – Late payments or property damage can be challenging for the property manager to deal with.

Which Option Is Best for Furnished Apartments in Montreal?

Deciding whether to have your long or short term rented-out apartment will rely on three factors: location, target, and level of investment property management.

When Short-Term Rental Is the Best Option

• Your apartment is located in a high demand vacation district, for instance, Old Montreal or the Plateau district.

• You don’t mind managing frequent guest bookings, cleaning, and maintenance.

• You want higher profits during peak seasons, even if it means occasional slow months.

• You can legally operate a short-term rental and have a CITQ permit.

When Long-Term Rental Is the Better Choice

• Your apartment is in a residential area where short-term rentals are restricted.

• You prefer a stable, hands-off income without frequent turnover.

• Your target renters include students (near McGill, Concordia, or UQAM) or professionals needing long-term housing.

• You want to avoid the uncertainty of Montreal’s changing rental laws.

Hybrid Approach: Mid Term Rentals

A third option gaining popularity in Montreal is medium-term rentals (30 days to 6 months). This rental property appeals to:

• Business professionals on temporary assignments.

• Digital nomads and remote workers.

• International students attending short programs.

• People relocating to Montreal who need temporary housing before settling.

Medium-term rentals have a larger price sticker but bypass restrictions placed on short-term rentals, offering a perfect alternative.

Conclusion

There is no single answer to whether short-term rentals generate a consistent income and larger profit for apartments in Montreal or not. Short-term rentals have a high potential for earnings but with a high level of activity, added expenses, and adherence to stricter laws and regulations. Long-term rentals have a secure monthly payment, less maintenance but a lesser monthly earnings.

If your apartment is in a tourism hotspot and you're ready to manage operations, short-term rentals will make a preferable option for you. However, in case a secure, less maintenance property is your preference, long-term rentals will make a safer option for you.

For some, a model of long-term rentals is perfect, providing both a higher price over long-term leases and less constraint than short-term stays.

Before making a decision, make consideration for your rentals in terms of Montreal’s laws, your financial objectives, and your desired level of work in caring for your rental property. Choosing a proper strategy will maximize your earnings and make your rental business stress-free.

Well, now the decision is yours