The short-term rental markets in Canada continue to evolve, and both Ontario and Alberta stand out as strong players. Each province offers opportunities, but the dynamics, rules, and returns are not the same. If you’re considering investing, it’s worth asking: which location makes more sense for short-term rentals today?
In this article, we’ll look at regulations, profitability, guest demand, and investment potential. Along the way, we’ll highlight the best short term rental markets and why Alberta, especially Calgary, is attracting more attention. If you want reliable support, MasterHost Calgary is known for excellent property management services that help hosts succeed.
Market Overview: Ontario vs Alberta
Ontario is Canada’s largest province by population, home to Toronto, Ottawa, and many smaller hubs. Demand for rentals here comes from business travelers, tourists, and international students. Walk around Toronto’s downtown on a weekday, and you’ll see the steady flow of people who drive its rental demand.
Alberta feels different. Its major cities, Calgary and Edmonton, don’t have Ontario’s population numbers, yet they pull in visitors for very specific reasons: big events like the Calgary Stampede, world-class ski resorts in the Rockies, and a growing tech sector. While Ontario gives hosts a larger guest pool, Alberta often provides less competition, which can be just as valuable.
The takeaway? Both provinces have attractive short-term rental markets, but the playing fields aren’t the same.
Regulations and Licensing
Rules can make or break profitability. In Ontario, especially Toronto, restrictions are strict. You can only rent out your principal residence, meaning you must actually live there most of the year. Registration with the city is mandatory, and there are limits on how many nights a property can be rented. Ottawa has its own registration system and fees.
Alberta’s approach is much lighter. Calgary and Edmonton require hosts to get a license, but the process is simple and there are no hard caps on rental nights. That flexibility makes Alberta one of the top short term rental markets for investors who don’t want to fight red tape.
Regulations do change, though, and keeping up can be stressful. Many Toronto Airbnb hosts rely on MasterHost to stay compliant while focusing on welcoming guests.
Profitability and Occupancy
When it comes to nightly rates, Ontario cities usually top the charts. A one-bedroom in Toronto or Ottawa can often rent for $150–$200 per night, depending on the season. The problem is that strict rules can cut into availability, so the annual revenue isn’t always as high as it first appears.
In Calgary, the average rate is often lower, around $120–$160 per night, but hosts aren’t held back by the same restrictions. They can rent year-round, and that steady flow often balances out the lower nightly income. In practice, many Alberta hosts find their net income surprisingly competitive with Ontario.
The best way to judge the short-term rental markets is not just by gross numbers. Investors should look at taxes, cleaning and management fees, and even vacancy risks before deciding.
Seasonal Demand and Guest Types
Ontario benefits from steady, year-round demand. Toronto has business travelers during the week, international tourists in the summer, and students arriving every fall. Ottawa’s mix of government visitors and cultural events adds to the pool.
Alberta’s demand looks different. It spikes during key times like the Calgary Stampede, hockey playoffs, and ski season in Banff or Jasper. Walk through Calgary during Stampede week, and you’ll understand why hosts call it their busiest and most profitable time of the year.
The trend is shifting, though. More travelers are now looking for unique and affordable stays in Alberta, supporting the growth of its short-term rental markets. Ontario will always attract global tourists, but Alberta is quickly becoming a favorite for families, adventurers, and event-goers.
Investment Potential
Real estate prices set the stage. Anyone who has searched Toronto condos knows how steep they can be. A small downtown unit might cost double what you’d pay for a detached house in Calgary. That difference alone changes the math for new investors.
Another detail worth noting. Alberta doesn’t charge provincial sales tax (PST), while Ontario adds HST to most services. Lower costs, combined with cheaper property prices, make Alberta stand out among the best short term rental markets.
Those who want reliable returns without fighting Toronto’s complex rules often choose Calgary. And with MasterHost managing a property becomes much simpler.
Risks and Challenges
Ontario’s biggest hurdle is regulation. Non-compliance can bring fines, and competition in Toronto is intense. New hosts often struggle to get visibility.
Alberta’s risks are different. Occupancy can dip during off-seasons, and hosts need to be strategic with pricing to avoid long gaps. That said, careful planning usually offsets these dips.
Both provinces carry risks, but with the right strategies and the right management partner many hosts still thrive.
Future Outlook
Looking ahead, Ontario’s rules probably won’t loosen. City governments are focused on balancing housing needs with tourism. Growth will remain steady, but opportunities may be limited to hosts who qualify under strict guidelines.
Alberta feels more promising. Tourism is on the rise, international events are increasing, and cities like Calgary are investing in development. The government has so far supported tourism-friendly policies, which helps keep the market attractive. For many, Alberta looks like one of the top short term rental markets for the next decade.
Which Market Wins?
Ontario and Alberta each bring something different to the table. Ontario offers access to large urban markets with reliable guest demand, but strict regulations and high costs are barriers. Alberta, in contrast, offers flexibility, affordability, and plenty of room to grow.
When comparing short-term rental markets, Alberta’s freedom and affordability often make it the smarter bet. Ontario will remain strong, but Alberta is quickly catching up.
If you want to unlock your property’s full potential, partnering with MasterHost, a company recognized for excellent service and proven results, can make the difference. With the right strategy, you’ll be ready to succeed in whichever market you choose.