Positive and Negative Points of Renting Out Your Cottage
Wednesday Aug 15th, 2018Share
If you own a cottage, then it has the potential to become a money maker for you when you are not using it. Whether it is during the off-season, or during cottage season when you cannot get to it to enjoy it, cottage rental opens up the opportunity to profit off of an otherwise empty property. There are many things that you need to consider when you start to think about renting out your cottage though, and going through the pros and cons can help you decide if it is right for you or not. Here is a list of pros and cons about renting your cottage that we have compiled at Muskoka Luxury Properties in our years of experience.
Pro - Additional Income
One of the best aspects of renting your cottage out is making additional income on a property that would otherwise be sitting vacant. Cottages in the Muskokas can easily rent for thousands of dollars a week. By renting your cottage out for half the month, or during the most profitable months of the summer, then you can make a significant amount of money. Just remember that this is taxable income.
Con - Insurance
If you want to rent your cottage out, even just to family and friends, you will need to inform your insurance provider. They are the first people that you should contact once you decide to rent. If you rent without updating your insurance to include the fact that you are going to be doing this, then your insurance can be voided entirely, leaving you with a significant bill if something goes wrong. Every insurance company is different, so you will not know what their rules are until you contact them, but in all likelihood, your new rate for owning a rental property will be higher than it was before.
Pro - Helps Pay for the Mortgage
If you purchased your cottage with a mortgage then renting is a fantastic way to help pay off the mortgage faster. Depending on your cottage, the amenities you offer, and the going rate of your location, just two weeks of renting can pay your monthly mortgage.
Con - Managing the Property
Most cottages are rented Saturday to Saturday, arrival time at 2 pm and leaving time at 11 am. That gives you a three-hour window to turn the cottage around. While there is an expectation that the cottage be returned to the state it was when it was rented (neat and tidy, no food in the fridge, dishes washed and put away, garbage taken out) cottages are increasingly being left in a mess. If you are a cottage owner who does not live near the area, you will have to hire a cleaning service to come in and give everything a once over. If you do run into a problem with a guest that has left things in an inappropriate state, then you will need to rely on a "cleaning fee" which you can put into your contract.
Renting has its positives and negatives, but you can mitigate many of the negatives with careful planning, following all regulations, and having good contracts. If you want to purchase a cottage for rent, then you need to look at Muskoka real estate including Port Carling real estate. There are so many amazing Port Carling waterfront cottages for sale that can all be turned into profit-making cottage rental properties. Contact us at Muskoka Luxury Property today!