The Challenge
In this illustrative scenario, a BC-based owner purchased a two-bedroom lakeside condo in Kelowna for $595,000 with a 20% down payment. Between mortgage payments, monthly strata fees, utilities, and basic insurance, carrying costs came to approximately $3,200 per month — or $38,400 annually. The owner wanted to use the property personally during peak summer weeks but wondered whether short-term rental income during the remaining weeks could meaningfully offset the carrying burden or even generate a small profit.
The central question wasn't whether STR income was possible — Kelowna's Okanagan lakefront commands strong summer demand — but whether the realistic net income (after platform fees, management, cleaning, and seasonal vacancy) would be enough to justify the complexity of operating an STR versus simply renting the unit long-term.
The Approach
Using Astrilio's STR revenue estimator, the investor modelled the property across three seasonal bands: peak summer (June–August) at approximately 65% occupancy; shoulder season (May, September–October) at around 40%; and off-peak (November–April) at roughly 20%, accounting for owner-use weeks. Average nightly rate was set at $295 in peak, $195 in shoulder, and $145 in off-peak based on comparable Kelowna listings.
From the gross revenue figure of approximately $52,000 annually, the model deducted Airbnb/VRBO platform fees (15%), professional property management at 20% of gross revenue (chosen because the owner lives in Vancouver), and cleaning at $150 per turn with an estimated 80 annual turnovers. The cash flow calculator was then used to compare the STR scenario directly against a long-term rental at $2,600/month to assess whether the premium was worth the additional management complexity. The cap rate calculator provided a final sanity check on yield relative to purchase price.
Key Takeaways
Kelowna's STR market is meaningfully seasonal in a way that flat annual occupancy projections obscure. The three-month summer window (June–August) accounts for a disproportionate share of annual revenue — in this model, roughly 55% of gross income comes from 13 weeks. That concentration creates sensitivity: a summer with poor weather, a competing development completing nearby, or a change in Airbnb's search ranking can meaningfully affect annual results.
The comparison with long-term rental ($2,600/month = $31,200/year gross) is instructive. The STR scenario generates approximately $20,000 more gross income, but once management, platform fees, and cleaning are accounted for, the net advantage narrows to roughly $14,000 — which translates to about $1,167/month. Whether that premium compensates for the operational complexity, lack of stability, and time spent coordinating bookings and maintenance is a personal judgement call.
One factor not captured in this model is capital expenditure. STR properties typically require faster refresh cycles — linens, small appliances, décor — and higher wear-and-tear on furnishings. A prudent budget of $3,000–$5,000 per year for STR-specific capex would further narrow the net advantage. Owners operating without professional management should also account honestly for the time cost of guest communication and coordination before concluding the STR route is clearly superior.