Making Money with Short-Term Rentals in Lethbridge
September 1st, 2026
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If you own a property in Lethbridge—whether it’s a cozy downtown condo, a house near the University of Lethbridge, or a home close to ATB Centre—you might be considering renting it out short-term through platforms like Airbnb or VRBO. With events like Whoop-Up Days, university gatherings, and the growing tourism scene, short-term rentals can be a great way to earn extra income. But before you list your space, here are a few key things to keep in mind.
Here is an article on short term rentals in Alberta.
What Counts as Income?
Every dollar you earn from your rental is taxable income. This includes:
Nightly rates
Cleaning fees
Service charges from the booking platform
Any additional services you provide (like local recommendations or breakfast)
The good news? You can also deduct many of the expenses that come with running a rental business.
Common Expenses You Can Deduct
Running a short-term rental comes with costs, but many are tax-deductible. Keep track of:
Cleaning and maintenance (for the property and between guests)
Utilities (electricity, water, internet—if not included in the rent)
Repairs and replacements (fixing a leaky faucet, replacing worn-out furniture)
Insurance (Note: make sure your policy covers short-term rentals)
Marketing costs (listing fees, professional photography)
Property management fees (if you hire someone to handle bookings or cleaning)
Taxes: What You Need to Know in Alberta
Since Alberta only has the 5% GST (no provincial sales tax), the rules are simpler than in other provinces:
GST Registration: If your rental income exceeds $30,000 in a 12-month period, you must register for and charge GST.
Reporting Income: Even if you don’t reach $30,000, you still need to report your earnings on your tax return.
Keep Receipts: The CRA may ask for proof of your expenses, so save receipts for at least six years.
Here’s a great video on taxes and your short term rental.
Many rental platforms (like Airbnb) handle tax collection for you, but it’s still your responsibility to report everything accurately.
Local Considerations for Lethbridge
Before you start renting, check:
Zoning and Licensing: The City of Lethbridge has rules about short-term rentals. Some areas may require a business license.
Insurance: Standard home insurance often doesn’t cover rentals. Talk to your insurer about a policy that protects you and your guests.
Neighborhood Rules: If you’re in a condo or apartment building, check the bylaws—some restrict short-term rentals.
Final Thoughts
Renting out your property in Lethbridge can be a smart way to earn extra income, but it’s not as simple as just listing it online. Keeping good records, understanding your tax obligations, and following local rules will help you avoid headaches down the road.
At Shaw & Associates, we help small business owners and rental hosts stay on top of their finances. If you’re unsure about deductions, taxes, or compliance, reach out to us—we’re here to make it easier!
Contact Shaw & Associates Chartered Accountants for accounting help you can count on. One complimentary meeting with us will put you and your business on a more profitable and positive path.