Cottage Rental – Advise on Buying as an Investment
Cottage Rental, Cottage Rentals in Ontario
Is a Cottage Rental a good investment?
The low down on Ontario cottage rental properties. I was recently asked by a friend of mine about buying a cottage in Ontario to rent out. Here is the advise I gave her.
Yes, Muskoka is the most popular of all the Ontario regions but that’s not to say other regions don’t rent well. If you are looking at Muskoka, Lake Joseph, Lake Rosseau and Lake Muskoka are all high in demand. But what is most import is to find a lake and cottage you love and people will inevitably want to rent it. Make sure you research the lake and area well. Does the lake have an association? Is there a marina on the lake? Have there been an environmental or water quality assessments? What are the neighbours like? Does the lake allow rentals and if so, for how long? These are all big factors especially when you want to generate rental income.
The Ideal Cottage
The sweet spot in terms of rental potential is a 4 bedroom with at least two bathrooms and ideally a bunkie. That will open it up to larger groups or 2 families. There are a lot of renters looking to host guests. Also look at exposure (Western is the most desirable for those beautiful sunsets) and water access?
Cottage Rental Season
Unlike Florida or southern destinations, the high rental season in Ontario is only 10 weeks a year (July and August). There are some renters that rent throughout the year but they are fewer and the rental income is not as high. You should also factor in how much you would like to use the cottage during the summer months? Will you want to go up every weekend? If so you can rent just weekdays but again this will limit your renter pool.
Amenities are super important. If you want to get good reliable renters and a decent rental rate your cottage will need to be well equipped. Here is a list of the top amenities people look for in a rental. dashwasher, laundry, internet (wifi), tv, water toys (canoe, kayak), exposure, clean, modern and well decorated and good sized dock. If you have these you can command a higher weekly rental rate.
Based on a 4 bedroom, Muskoka (one of the 3 large lakes) well appointed cottage you can get anywhere from $3,500 to $12,000 per week. I know that’s a huge range but it really depends on the place.
Please feel free to email firstname.lastname@example.org if you would like some advise on buying a cottage as an investment property.