Lots of Canadians use their cottage as a getaway, whether it’s in the winter or the summer. And just a few weeks ago we talked on this blog about how cottage sales are up this year in Cottage Country due to the mild winter Ontario has been enjoying this year; and it’s no wonder why. Cottages really are a perfect investment. You can use a home equity loan on your primary residence to invest in a second home, and then build equity in two properties instead of one. But there’s another way to let your cottage be your financial getaway rather than just growing as an investment. You can rent it out while you’re not using it.
Whether you want to rent it out for the entire season, or just for the few weeks that you won’t be using it, you can make a lot of money in just a few weeks with an asset you already own, when you decide to rent out your cottage. Of course, how much money you make will depend on things like whether or not you’re going to rent in the prime season, what type of cottage you have, and where it’s located. Ms. Sofferin, vice president of Cottage Country Vacation Rentals, says, “If you’ve got a luxury lakefront cottage, 10 steps to the water with a boathouse, you’ll get big bucks. But there’s also something to be said for a kind of more rustic, woodland-setting cabin, and there is someone looking for that, too.”
Of course, while the lure of renting out your cottage and making money is appealing to most cottage owners, just as many are worried about actually having someone (or a number of people,) living in your cottage for any period of time. What condition will they leave it in? How will you accept payment, and ensure that you get paid? And how can you be certain that you’re only renting to reputable, quality tenants?
You really do need to go through a company such as Ms. Sofferin’s. At agencies such as hers, they’ll list your property for you and screen all potential tenants, as well as make sure that things run smoothly from the beginning of the tenancy period to the end. Using a property management company is of the most extreme importance, and if they specialize in cottage rentals, it’s even better. Make sure you do your research and speak to several different companies to find out which one is best for you. When you do find them, you’ll soon start realizing just how much you have to profit from renting out your cottage.
It’s no wonder why cottages are considered to be one of the most perfect investments. You can purchase it using the equity in your current home, and then rent it out to make a few bucks. Even after you put some of that rental money into the Ottawa mortgage on your own home, you might even have enough to pay off the cottage too!
