Airbnb vs long term rental Toronto is the comparison every condo owner eventually runs. "Should I Airbnb or rent my condo?" is the single most common question GTA homeowners ask us, and the short answer is this: Airbnb typically earns 30 to 100% more, and one of our real clients swung from losing $926 per month as a long-term rental to netting $847 per month on Airbnb. That's a $1,773 per month shift ($21,276 per year) on a single 1BR condo. The right answer depends on your building, your goals, and your tolerance for involvement, so here is the real data.
Real Numbers: Toronto Airbnb vs Long Term Rental
Let's start with what actually matters: money. When you compare Airbnb vs long term rental Toronto side by side, the gap shows up fast. The table below lays out average monthly figures for a typical 1-bedroom condo in Toronto.
| Factor | Long-Term Rental | Airbnb (Managed) |
|---|---|---|
| Gross Monthly Revenue | ~$2,035 | ~$3,520 |
| Management Fees | $0 (self-managed) | 18% ($422-$634) |
| Cleaning Costs | $0 | Passed to guests |
| Furnishing Required | No | Yes (one-time cost) |
| Utilities Included | Sometimes | Yes (~$150/month) |
| Vacancy Rate | ~3-5% (30-60 day gaps) | ~30% (built into pricing) |
| Net Monthly Income | ~$1,900-$2,035 | ~$2,800-$3,170 |
| Income Advantage | Baseline | +47% to +65% |
Sources: Average Toronto 1-bedroom rent from Zumper/Rentals.ca (2026). Airbnb revenue estimates from AirDNA data at 70% average occupancy. Actual results vary by neighborhood, season, and listing quality.
The gap widens with larger properties. A 2-bedroom condo averaging $2,500/month long-term can generate $4,800 or more on Airbnb. A 3-bedroom home? The difference can exceed $2,000/month.
Should I Airbnb or Rent My Condo? A Real Toronto Case Study
Spreadsheets are one thing. Here's what actually happened with a Nurture client who asked "should I Airbnb or rent my condo" and then made the switch. The property: a 1-bedroom condo in the GTA that was bleeding cash as a long-term rental.
Switched from long-term tenant to Airbnb with Nurture management. Result: 87% increase in net cashflow in the first month.
Before: Long-Term Rental
| Item | Monthly Amount |
|---|---|
| Rent Collected | +$2,200 |
| Mortgage Payment | -$2,400 |
| Maintenance + Property Tax | -$726 |
| Monthly Cashflow | -$926 |
This owner was losing nearly $1,000 per month. The long-term rent simply could not cover the carrying costs. It's a situation many Toronto condo owners know all too well, especially those who purchased in 2021 or 2022 at peak prices.
After: Airbnb with Nurture
| Item | Monthly Amount |
|---|---|
| Airbnb Revenue (after platform + management fees) | +$4,123 |
| Mortgage Payment | -$2,400 |
| Maintenance + Property Tax | -$726 |
| Internet + Utilities | -$150 |
| Monthly Cashflow | +$847 |
The swing was $1,773 per month. From bleeding money to generating positive cashflow. The property went from a financial liability to a performing asset, all within the first month of listing.
Beyond the Income: Other Factors to Consider
Money is the biggest factor, but it's not the only one. Here's how Airbnb and long-term rentals compare on the things owners often overlook.
Flexibility
Airbnb lets you block dates for personal use, adjust pricing seasonally, or switch strategies anytime. Long-term leases lock you in for 12+ months, and Ontario's tenant-friendly laws make it difficult to regain possession.
Wear and Tear
Short-term guests are generally lighter on properties than long-term tenants. Professional cleanings between every stay catch issues early. Long-term tenants may cause gradual damage that goes unnoticed for months.
Tenant/LTB Risk
Ontario's Landlord and Tenant Board (LTB) process can take 6 to 12 months to resolve disputes. Non-paying tenants can remain in your property for months during proceedings. Airbnb guests check out on their departure date, every time.
Maintenance Visibility
Regular turnovers mean your property is inspected and cleaned every few days. Issues like leaks, appliance problems, or pest concerns get caught immediately rather than after a full lease term.
Income Stability
Long-term rentals offer predictable monthly income. Airbnb revenue fluctuates with seasons, events, and occupancy. January and February are typically slower months, while summer and fall are peak season.
Time Investment
Self-managing Airbnb is a part-time job. But with professional Airbnb management in Toronto at 18%, the time investment becomes comparable to long-term renting. Nurture handles everything from guest communication to cleaning.
The 180-Night Limit Factor
Toronto's short-term rental regulations cap entire-home rentals at 180 nights per calendar year. This is the most common objection we hear from owners considering the switch. But here's what many people miss.
180 Nights Is Still Profitable
Even at 180 nights, Airbnb revenue typically exceeds what you'd earn from 365 days of long-term rent. At an average nightly rate of $150 for a 1-bedroom (conservative for Toronto), 180 nights generates $27,000 per year, or $2,250 per month. That already surpasses the average long-term rent of $2,035.
And those are just the short-term nights. Some owners choose to take mid-term bookings (30+ days) during the remaining period to keep the property occupied. We can't advise on the legal nuances of this approach, so speak with a licensed professional about what's compliant for your specific situation.
Partial-Unit Registration: No Night Cap
Toronto offers a partial-unit registration for hosts who rent out a room or portion of their home while they remain on-site. Partial-unit registrations have no night limit, meaning you can operate 365 days a year. If you live in a multi-bedroom home, this can be a powerful option.
Don't Forget the MAT
All short-term rentals in Toronto are subject to an 8.5% Municipal Accommodation Tax (MAT). Airbnb collects and remits this automatically, so it doesn't require extra work from hosts. It's worth factoring into your revenue projections, though platforms like Airbnb typically add it on top of the nightly rate rather than deducting from your payout.
When Long-Term Renting Actually Wins
We're an Airbnb management company, but we believe in honesty. There are situations where long-term renting is the better choice.
Investment Properties Without Principal Residence
If the property is not your principal residence, most GTA cities require it to be for short-term rental licensing. Long-term renting or mid-term rentals may be your only compliant options.
Condo Boards That Prohibit STRs
Many Toronto condos explicitly ban short-term rentals in their declaration or rules. Even if the city permits it, your condo corporation's rules take priority. Violating them can result in fines or legal action.
Mid-Term Rentals: The Best of Both Worlds
If short-term renting isn't an option (or if you want to complement your Airbnb strategy), mid-term rentals offer a compelling middle ground.
Furnished rentals of 30+ days. They're exempt from most STR regulations in the GTA, don't count toward Toronto's 180-night cap, and can earn 15-30% more than traditional long-term leases.
Mid-term rentals attract high-quality tenants: corporate employees on temporary assignments, healthcare professionals on contracts, families relocating to the GTA, and professionals between homes during renovations. These guests typically treat properties well and pay a premium for furnished, flexible accommodation.
How the Three Strategies Compare
| Factor | Long-Term | Mid-Term | Short-Term (Airbnb) |
|---|---|---|---|
| Monthly Revenue | Baseline | +15-30% | +30-100% |
| STR License Needed | No | No | Yes |
| Principal Residence | Not required | Not required | Required |
| Night Limit | None | None | 180 nights/year |
| Furnishing Required | No | Yes | Yes |
| Tenant Turnover | Annual | Every 1-6 months | Every 1-7 days |
| Owner Flexibility | Low | Medium | High |
| Management Effort | Low | Medium | High (low with manager) |
Many Nurture clients use a blended strategy: Airbnb for the high-demand months (May through October), then mid-term bookings for the slower winter months. This maximizes annual revenue while maintaining near-full occupancy year-round.
Frequently Asked Questions
How much more can I earn on Airbnb vs long-term in Toronto?
On average, a well-managed 1-bedroom condo in Toronto earns approximately $3,520/month on Airbnb at 70% occupancy, compared to roughly $2,035/month in long-term rent. That's around 73% more gross revenue. After management fees and additional costs, most hosts still see 30-100% higher net income.
Is Airbnb more work than long-term renting?
Self-managing an Airbnb is significantly more work: guest communication, turnovers, cleaning, pricing, and restocking. However, with a professional management company like Nurture handling everything at 18% commission, Airbnb becomes just as hands-off as long-term renting while earning considerably more.
What about the 180-night limit in Toronto?
Toronto caps entire-home short-term rentals at 180 nights per year. However, partial-unit registrations (renting a room while you live there) have no night cap. Many hosts also fill the remaining 185 nights with mid-term bookings (30+ days), which are exempt from the STR limit.
Can I switch from long-term to Airbnb mid-lease?
No. You must wait until the current lease expires or the tenant gives proper notice. Ontario's Residential Tenancies Act protects tenants, and you cannot evict a tenant solely to start short-term renting. Once the lease ends naturally, you can transition.
What are the tax differences between Airbnb and long-term?
Both rental types require reporting income to the CRA. Airbnb hosts can deduct more expenses (cleaning, supplies, management fees, furnishing) and must collect 8.5% MAT in Toronto. If you earn over $30,000/year, HST registration is required. Long-term rentals have fewer deductions but simpler tax reporting.
What if my condo doesn't allow Airbnb?
If your condo corporation prohibits short-term rentals, you have two options: mid-term rentals (30+ days) which many condo boards allow, or traditional long-term leasing. Check your declaration and rules, and contact your property manager to confirm the policy before listing.
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