You won’t get rich renting out your cottage. But renting can help you balance out the cost of your investment. Here are some guidelines to follow and pitfalls to avoid to maximize the profitability of your cottage.
Invest where it pays
Both the demand for cottage rentals and the number of online rental platforms have exploded over the past five years. Families with young children, baby boomers, even millennials are getting in on the trend. But watch out: You need more than a charming cottage to attract potential renters.
“Location is still the key determining factor in a cottage’s popularity. Think waterfront. Whether it’s the ocean, the sea, a lake or a river, proximity to water is the top criteria renters are looking for,” asserts author and real estate speaker Martin Provencher. “And you’ve got even more of an edge if your cottage is within a two-hour drive of a major centre,” he specifies.
As a result, we see a major gap between areas like North Okanagan and Kelowna in British Columbia, and Haliburton in Ontario. Areas like Mont-Tremblant and Saint-Donat in Quebec, however, are exceptions – their proximity to ski resorts is worth it’s weight in gold.
A rustic cottage is great. A fully-equipped modern cottage (television, Internet, hot tub…) is even better. “To increase your chances of renting, you have to follow the trends,” Provencher warns. “These days, people want the same comforts from a cottage that they’d find in a hotel.”
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