5 Things to do Before Renting Out Your Cottage

Thinking about turning your cottage into an income-generating rental property? Your cottage may already have everything you and your family need, but entering the rental market is a different scenario altogether. There are a few things you’ll need to do before you’re ready to welcome guests.

At Cottage Vacations Real Estate, we specialize in helping cottage owners make the most of their investment. In this article, we’ll highlight five important things to do before you start renting out your cottage or vacation property.

1. Connect With a Rental Property Expert

If you’re serious about renting out your cottage, you’ll want to connect with a professional team that understands Cottage Country’s short-term rental industry and what it takes to run a smooth and lucrative venture.

Renting out your cottage may sound simple enough on paper, but there’s a lot more to it than snapping a few pictures and listing it online. In addition to setting up a renter-ready cottage, managing the property long-term will be a big task, one that can be difficult if you live a multi-hour drive away.

Running a rental property also comes with rules and regulations. Rather than navigate these legal elements on your own, it’s much easier (and less risky) to partner with a professional who can walk you through it.

2. Optimize Your Cottage’s ROI Potential

Your cottage already has appeal. However, like any investment, there are always steps you can take to make it even better, especially when it comes to your returns. This is the reason why working with a professional is invaluable. Using their experience and industry knowledge, they can help you optimize your cottage’s ROI potential.

For example, a professional can help you properly price your rental rates based on the local area, seasonal demand, and other factors to ensure you’re earning the best return without pricing so high that you turn away potential guests. They’ll also market your cottage to a much larger audience than you can reach with a DIY approach, which can mean more bookings at top rates.

3. Understand Your Responsibilities: Property Management & Taxation

As a cottage owner, it’s your responsibility to understand and adhere to any relevant laws and regulations. Beyond the general provincial guidelines, certain rules can change from community to community, so it’s important to do your research. If you don’t, you could face steep fines and other penalties.

On the financial side of things, you’ll need to know about the complex taxation that applies to income-generating rentals. Without solid accounting, you could be in for an unpleasant surprise come tax season.

On the hunt for more investor-focused advice? Explore these related readings.

4. Let Your Neighbours Know

If you’ve never rented out your cottage before, it’s a good idea to let your neighbours know about your intentions. This is for their peace of mind and yours. For instance, you don’t want your neighbours to mistake arriving rental guests for intruders, causing panic. Proper communication can prevent potential disruptions for your guests and neighbours.

5. Clean, Depersonalize, and Remove Valuables

Finally, you’ll want to make a few changes to your cottage before you start welcoming renters. Start with a deep clean of the property. When renters pay top dollar to stay in a beautiful cottage, they’ll expect a clean, professionally maintained space.

You’ll also want to depersonalize your cottage before it becomes publicly available. Not only will this make guests more comfortable during their stay, but it also protects you from certain risks. You should walk through the property and remove family photos, sentimental items, documents with private or personal information, and anything else you wouldn’t want a stranger to get their hands on.

If you have any fragile or valuable items that aren’t a necessary component of your guests’ experience, you can remove those as well.

Set Yourself up For an Exceptional Investment

Whether you’re looking to set up a high-ROI full-time rental property or simply rent out your cottage a handful of times throughout the year, having the right support is essential. That’s where we come in.

As leaders in Ontario’s dynamic cottage market, Cottage Vacations Real Estate are passionate about helping you unlock a great lifestyle and optimize your net worth at the same time.

If you already own a cottage, we can help you set up and manage a profitable rental operation. If you plan to buy one, we can help you identify properties that are best suited to your ambitions as an investor.