A recent RE/MAX survey conducted by Leger found that 40 per cent of Canadians are in the market for a recreational property, and a whopping 56 per cent of millennials are interested in buying into the Canadian dream. The reasons for buying a cottage or cabin vary, from relaxation to retirement. Thirty per cent of survey respondents said they would purchase a recreational property as an investment. When it comes to a cottage rental, the purchase is only part of the process. Being able to rent it out in order to generate positive cash flow is an entirely different kettle of fish.
As with any investment property, when investing in a cottage rental, understanding the local housing market, tourism and rental demand in the area is key. Then you have to weigh these against your expenses, such as mortgage payments, property taxes and maintenance.
With a plethora of online cottage-booking services popping up, making sure your cottage rental stands out this summer is a must. A surefire way to do so is to include a bevy of family-friendly bonus items on that “what’s included” features list. Guests will be so excited to get cabining at yours, it’ll be hard not to stay there yourself.