Thinking About Buying A Vacation Rental In The Rockies? Here's What It Could Cost And Earn

Just five minutes from Canmore and one kilometre from the Banff National Park gates, a new 132-unit resort in Harvie Heights is offering buyers the opportunity to own a Rocky Mountain getaway with the potential to earn rental income.

With prices at Banff Legacy Resort starting at $670,000, the question is whether owning a short-term vacation rental in the Bow Valley makes financial sense.

From nightly rental rates to occupancy and operating expenses, here's what prospective buyers should know.

What Can A Vacation Rental Earn?

According to two local property management companies, demand for short-term rentals in the Bow Valley remains strong, although earnings vary significantly by season.

Lindsay Femwick, founder and CEO of Little Sister Getaways, said occupancy at her properties approaches 100 percent from June through September and sometimes into Thanksgiving, compared with approximately 50 percent during quieter months like April and November.

Across the year, her properties achieve occupancy rates ranging from approximately 75 to 93 percent.

Svet Pargov, CEO of S&T Properties, estimated that vacation rentals across the broader market see approximately 90 percent occupancy during summer and 60 percent during the off-season.

"The rates are fluctuating substantially if you're doing pricing properly," Pargov said.

He explained that nightly rental rates can be four to five times higher during peak periods than during quieter months.

What Could A $915,000 Property Generate?

For a two-bedroom vacation rental valued around $900,000, Pargov estimated annual revenue of $90,000 to $110,000, with a broader potential range of $85,000 to $115,000. Two-bedroom units at Banff Legacy Resort start at $915,000.

Femwick offered a higher estimate of approximately $130,000 annually for a comparable two-bedroom property valued around $900,000.

Here's how three illustrative revenue scenarios compare.

However, rental revenue isn't the same as profit.

Both managers estimated typical property management fees at approximately 15 to 30 percent, depending on the services provided.

Owners must also account for cleaning, booking-platform fees, maintenance, supplies, insurance, utilities, property taxes, and condominium fees.

Pargov suggested budgeting approximately two percent of revenue for maintenance and another two percent for supplies. Femwick estimated condominium insurance for a typical two-bedroom property at approximately $1,500 annually.

For a property generating $100,000 in annual rental revenue, some of those expenses could look like this:

Femwick estimated that a two-bedroom property generating $130,000 annually could result in an owner payout of approximately $77,000 after expenses handled by her management company.

However, mortgage payments, condominium fees, insurance and utilities would still need to be covered.

What Does It Cost To Buy?

According to Banff Legacy Resort Realtor Thomas Krause, buyers pay a 15 percent developer deposit, with the remaining 85 percent due at closing.

Prospective buyers should also confirm mortgage requirements, condominium fees, property taxes and insurance costs.

What If You Want To Use It Yourself?

Banff Legacy Resort allows owners to reserve dates for personal vacations without joining a mandatory rental pool or being required to rent their property, subject to visitor-accommodation regulations.

However, personal use can affect potential earnings.

Femwick said a two-bedroom property could rent for as much as $1,000 per night during peak season. At that rate, an owner staying for seven nights could forgo up to $7,000 in gross rental revenue, assuming those nights would otherwise have been booked.

"Each night has an opportunity cost," Pargov said, explaining that owners who stay during peak periods give up potential rental income.

For owners focused on rental income, visiting during quieter months could help preserve higher-earning dates.

For those purchasing primarily as a personal mountain retreat, that trade-off may be worthwhile.

What Makes Banff Legacy Resort Different?

Designed specifically for vacation accommodation, Banff Legacy Resort will feature nine buildings containing 132 individually owned townhouse-style residences at 950 Harvie Heights Rd.

With direct access to Highway 1, the development offers convenient connections to Banff, Lake Louise and surrounding mountain destinations without requiring guests to drive through downtown Canmore.

Residences will feature private entrances, upper-level balconies, air conditioning and modern appliances. Two- and four-bedroom units will have living areas downstairs and bedrooms upstairs, while the larger layouts include four actual bedrooms, each with a window.

Banff Legacy Resort will also offer underground parking, with a titled stall included in each residence and tandem parking for two vehicles in four-bedroom units.

 Each residence includes a titled stall, with tandem parking for two vehicles in four-bedroom units. Planned amenities include ski and bike storage, a hot tub, concierge service and more than 1,600 square feet of commercial space that could accommodate a coffee shop or light-dining business.

Buyers can choose from four interior finish collections, with optional furniture packages being discussed with Castlery. The development is also described as pet-friendly.

For buyers considering rental income, another feature is ownership flexibility. Owners won't be tied to a mandatory rental pool and can manage their property themselves, hire a company of their choice or reserve it for personal vacations, subject to applicable visitor-accommodation regulations.

When Will It Be Ready?

Banff Legacy Resort is under construction, with Phase 1 targeted for completion by the end of 2027.

The developer says excavation for the underground parkade has begun, and the ownership group has committed $20 million in capital to the project.

Gold Homes Ltd. is the general contractor, while Grayframe Ltd. has been selected for the underground parkade and major structural concrete work.

Interested In Learning More?

Explore Banff Legacy Resort's floor plans, starting prices and available residences. Prospective buyers can contact Realtor Thomas Krause for more information about the development, purchase process and anticipated completion timelines.