Long-term rental income in Toronto has softened. Rents are down nearly 11% since 2024 — we break down the numbers and what it means for owners in Why Toronto landlords are switching to short-term rentals (and the numbers behind it) — and more property owners permitted to operate a short-term rental are exploring this option as a result. With that shift has come an influx of property management companies, all making the same pitch: higher income, full occupancy, and hands-off ownership.
These claims are easy to make. What's harder to fake is whether owners actually stay.
At HSG, we renew 99% of our owners year after year. That means nearly every property owner who joins HSG, stays with HSG. But the more useful question isn't the number itself, it's what the number tells you about the business behind it.
What retention actually measures
Retention isn't a measure of how much owners like us. It's a measure of whether the three things that actually matter to a property owner are consistently delivering: the income holds, the property is protected, and when something goes wrong (and something always goes wrong) it gets resolved quickly and professionally.
If any of these three fail, owners leave. It's that simple.
What makes this even harder to evaluate upfront is that most owners don't leave over a single incident. In our experience of onboarding owners from other management companies, the pattern is consistent. It shows up in inconsistent reporting, limited operational support, and a lack of attention to detail — and when things go wrong, that's where their true ability to manage is tested, and often falls short.
The retention number tells you the outcome. The daily operations are what produce it.
The proof behind the number
Unlike retention rate, the behind-the-scenes operations are something you can inspect before you commit.
For example, how fast does the team respond when something breaks? How is the listing priced on a Tuesday in February versus a Saturday in June during a Jays homestand? Who is picking up the phones? Our answers to these questions are what produce that 99% client retention rate. Here's what we lead with:
- 97% of our properties achieve Superhost or Guest Favourite status within their first year. That's the result of how a listing is set up, how pricing is managed, and how quickly issues get resolved.
- Our average response time for non-urgent property issues is 6 hours. The industry standard is 53 hours. Quick response time matters more than any amenity on a listing, especially for extended-stay guests who need the property to function without issue.
- We manage pricing daily. We don't set it once and leave it to run on autopilot. We use dynamic pricing software like many companies do, but the decisions aren't made by an algorithm working on its own. Our team adjusts based on demand, local events, competitive positioning, and the specific performance of each property.
- We have a full-time, local team covering every function a property requires: guest communications, housekeeping, on-the-ground maintenance, and operations. The same team that onboards a property is the same one managing it when a guest can't get the heating to work.
- We've built a corporate partner network that most property management companies don't have access to and can't quickly replicate. It includes extended-stay bookings from businesses, film and TV production companies, and relocating professionals who don't book through Airbnb. They come to us because they know what they're getting: premium properties, the ability to invoice directly, mid-stay cleaning, and a local team that picks up the phone when something comes up. These guests book longer, treat properties with care, and represent a meaningful portion of our portfolio's income.
"HSG has made the chore of property management easy for me. I can rest easy knowing the HSG's team has all the guest interactions, operations and financial aspects of my rental business well taken care of."
— Roger R, Property Owner
What it means if you're considering HSG
Our retention rate tells a prospective owner three things worth understanding about HSG.
First, we are selective about our portfolio. We exclusively manage premium properties that have been set up to perform. This setup process is meticulous to ensure the property looks its best to maximize revenue: the right furnishings, the right listing, and the right positioning. We've said it for years: your property's success is determined before the first guest walks through the door. If a property isn't the right fit, we'll let you know before you commit, so you aren't left wondering.
Second, you're joining an experienced operation that has been running successfully for over a decade. The processes are smooth. The team is well-trained. The corporate relationships are established. You are not the first client being onboarded by a team that's still figuring things out. In fact, we have a seamless onboarding experience that we handle every step of the way.
Third, and most important, the owners who have been with us for 6+ years are not staying out of goodwill. They stay because the service is unmatched and the results are continuous. In fact, 97% of the properties we manage achieve Superhost or Guest Favourite status within their first year, and we hold top 0.01% Airbnb status worldwide — a designation that comes with dedication, experience, and outstanding service.
What to expect in the first 90 days
For owners new to short-term rental, the process starts before the first guest books. We work from a detailed "Host Checklist" which includes everything a property needs to be short-term rental ready, down to the specific items and quantities needed. We ask owners to supply what they can; anything they can't handle, we take on directly.
For owners with unfurnished properties, we can manage the entire setup process from the ground up. Over the years, we've developed relationships with reliable suppliers to source all required Host Checklist items. Our furnishing philosophy is "economical, durable, and attractive," with a focus on new, hotel-grade furniture designed for short-term rental use. Alternatively, you're welcome to prepare the unit yourself.
From there, we stage your property for listing photos, optimize the listing itself, and integrate it across platforms to maximize both visibility and revenue. It's important to know that there is a setup runway involved and the timeline depends on season and market conditions — but we're realistic about that from day one. The goal is not a fast launch but developing a property that performs consistently over the long term.
Switching to HSG from a competitor
When owners switch to HSG from a competitor, the transition is uncomplicated. We coordinate the account migration directly; we just need to know the final date they are working with the property management company and we will handle the rest. The smoother the transition, the faster the property is performing the way it should be.
Bottom line: one number we aren't afraid to publish
Most property management companies will tell you they have great retention but few will share the actual number. There's usually a reason for that.
99% is ours. It reflects a full-time local team, a decade of established operations, corporate partnerships that most owners don't have access to, and a service model built around the things that keep a property performing.
If you're evaluating your options as a Toronto property owner, we're happy to have a conversation about what your specific property could produce based on current market conditions and our portfolio data. Get in touch with the HSG team.
Questions we get from owners
How long does it typically take to see results with a new STR manager?
It depends on the season and how the property comes to us. A property transitioning from another manager (with an existing listing history) can perform well quickly. A property new to short-term rental has more runway: setup, staging, listing optimisation, and early reviews all take time to accumulate. We're transparent about that timeline from the first conversation. What we won't do is promise a number we can't back up.
What should I look for when comparing property management companies in Toronto?
A high retention rate is a strong indicator that the company is operating successfully. However, evaluate their operations including: service model, team structure, and platform track record. Ask questions like: does the company have full-time local employees, or are they relying on contractors and outsourced support? What pricing software do they use? How hands-on are they with their properties? Look for a company that has experience in the industry and knows what it takes to be successful.
How does HSG's DHMS status affect my property's performance?
Dedicated Host Management Support (DHMS) partner status is one of the highest platform designations Airbnb awards to property managers. It affects listing visibility, pricing access, and trust signals that influence how guests book. It's a meaningful differentiator and one that very few Toronto management companies hold.
What happens in the first 90 days with HSG?
The short answer: setup, staging, listing build, platform integration, and competitor transition (if you're moving from another manager). The first 90 days are about building a property that performs for the long term, not racing to the first booking.
