If you own a cottage, you already know about the joys of having a home away from home. They include more enjoyable family vacations, the knowledge that you’ve made a sound investment, and (if you’re planning to rent your place out) extra income!
Of course, there’s a right way and a wrong way to put your cottage on the rental market. Getting informed is the first step towards ensuring things go smoothly—and locking down the highest possible return.
Here’s what you should know about preparing your cottage as a short-term rental…
What’s Currently Allowed
The good news is, Ontario is now in the third stage of reopening, which means you can rent out your cottage without worry. But the concerns of local owners don’t end there. We’ve seen a recent increase in complaints about parties, noise, improper garbage disposal, and other issues related to short-term rentals.
Fortunately, there haven’t been any new rental restrictions enacted. That said, if you’re renting your place out, you’ll want to stay on the good side of your neighbours—and prevent any unwanted damage to your property. Make sure you screen potential renters by asking questions—and communicate your expectations from the beginning.
Haven’t bought your dream cottage yet? There are some things you should know when you’re purchasing property in The Kawarthas. Here are some resources you may find helpful.
- A Quick Guide to Shore Road Allowances
- Buying a Property With a Well? Here’s What to Know.
- Buying a Property With a Septic System? Here’s What to Know.
Dive into the Logistics
Before you start renting out your property, there are some decisions that need to be made. First off, when do you plan to use your cottage? Scheduling the time when your place will be unavailable is essential, since most renters want to book several weeks in advance.
Next up, how will renters check in and out. Will you greet visitors in person, hide the key, or opt for an electronic keypad system? Are you available to clean up and change the sheets between guests, or do you need to hire a local to help out when you’re not around?
Of course, security concerns extend beyond who comes into your cottage and how they access the property. You’ll also want to decide on a platform for carrying out transactions safely (using a platform like Airbnb can make things easy).
To keep your possessions safe, find a place to store private or high-value items. A locked room works well! You may also want to look into short-term rental insurance. Lastly, don’t forget that it’s your cottage—and you can create a set of house rules if you want to.
Making Your Property Stand Out
While cottages in The Kawarthas are in high demand, making yours as inviting as possible still pays off. It could mean getting repeat renters, which is ideal if you’re looking for consistent income and want to build a rapport with your visitors.
First off, if you’re considering making improvements, do so strategically. Installing a luxurious soak tub in the bathroom could work well, depending on who you’re trying to appeal to. If it’s something you’ll get enjoyment from too, all the better! That said, smaller upgrades, like a new coat of paint and the addition of modern taps and faucets, can also go a long way.
Next up, make your listing stand out with beautiful photography. If you have the budget, hiring a professional can make all the difference. A real pro will know how to use angles and lighting to cast your cottage in the perfect light.
You’ll also want to take the time to add some homey touches, like a personalized note, nice bottle of wine, or fresh flowers. Once you’ve provided some fantastic rental experiences, it’s a matter of showcasing them to attract future renters. Consider sending a polite “thank you” along with a request for a review a few days after check out.
Want to help your renters have an incredible experience in The Kawarthas? Check out some of our latest posts about the area—and recommend the best that it has to offer!
- Discover the Best Kawartha Lakes Golf Courses
- 8 Things to Do in the Kawarthas This Summer
- Your Guide to Living in Kawartha Lakes
The Tax Implications
Unfortunately, there’s one part of renting out a cottage that’s not so fun, and that’s paying taxes. Declaring all of the income you earn is crucial, as is working with a financial expert to ensure you’ve dotted your i’s and crossed your t’s.
One potential pro? You may be able to write off some of your costs. From maintenance to advertising to insurance, these deductions can make a major difference from a financial point of view.
As for capital gains tax, you may qualify for an exemption even if you rent your property out. It all depends on whether you can designate your property as your principal residence (i.e. do you ordinarily inhabit it, or are you using it primarily to generate income?) When you speak with a financial advisor, be sure to go through these details.
Renting out your cottage is a great way to make some extra income, so long as you go into it with your eyes wide open. Our advice? Take the time to set yourself up for success—you’ll be glad you did!
Ready to buy your dream cottage? Check out our local listings and get in touch to take the first step with our team here!
