Buying a downtown Toronto condo sounds like a dream — but is it the smartest move?
Let’s say you just closed on a 2-bedroom condo in the Entertainment District, just steps from the CN Tower. You’ve hit a major milestone. Owning property in one of Canada’s most iconic real estate markets has long been seen as the pinnacle of smart investing. But here’s the problem — most investors still follow outdated strategies.
Let’s break it down. Your 2-bedroom unit will likely have monthly carrying costs between $3,200 and $3,400, which includes your mortgage, condo fees, insurance, and property taxes. You’ll earn around $3,100/month if you place a long-term tenant. That leaves you short by at least $100–$300 monthly.
This used to work 15 years ago. Rental income was higher than costs, and the unit would pay for itself. But in 2025? That strategy bleeds cash.
The New Reality of Toronto Real Estate Investing
Even though you might be willing to absorb a monthly loss for future appreciation, you don’t have to settle for negative cash flow. Many investors believe long-term tenants are the only path, but that’s not true anymore. There’s a more modern, profitable route.
With short-term rentals, your income potential changes entirely.
Instead of $3,100/month from a long-term tenant, a well-located 2-bedroom short-term rental in Toronto can generate between $4,500 and $5,000/month over a year. That’s more than enough to cover carrying costs — and then some.
At Guestable, we help property owners unlock this potential through a hands-off model. We manage listings across Airbnb, Booking.com, Expedia, and other high-traffic platforms. Our team handles pricing optimization, guest screening, communication, check-ins, cleanings, and listing performance.
We also use mid-term monthly rentals to fill properties in the low season, ensuring year-round income and avoiding vacancy gaps.
The Smart Way to Build Cash-Flowing Real Estate in Toronto
Most real estate advice still follows the 2010 script—rent long-term, hold, and hope the appreciation justifies short-term losses. But the modern investor is looking for positive cash flow today.
Short-term and mid-term rentals make that possible, especially when professionally managed. Our clients are seeing higher returns, faster break-even timelines, and greater peace of mind, knowing they’re not navigating this alone.
Don’t limit your potential by following outdated norms. Contact Guestable to discover how your Toronto property can outperform the traditional rental market.
As you rethink your Toronto real estate investment strategy, it’s worth exploring how a professional service for Airbnb Management Toronto can maximize your earnings while minimizing your workload.