How to Maximize the Earning Potential of Your Rental Cottage

If you’ve owned a cottage for some time, you may find that you’re using it less and less. This could be because your kids have grown up and relocated, your work responsibilities have shifted, or your recreational interests have simply moved elsewhere. Regardless, you just may have less of a need for this extra property.

But this doesn’t mean it’s time to say goodbye to your cottage. If or when you start noticing your cottage isn’t getting the use it could be getting, consider renting out your cottage for a portion of the year. This is a solid way to earn extra income and help establish a comfortable nest egg while also ensuring your property is getting put to good use!

All this said, renting out a cottage can feel overwhelming as it comes with a lot of new responsibilities. The good news is, there are ways to maximize the earning potential of your rental cottage without making more work for yourself.

Here are a few ways you can generate revenue while also providing a great vacation spot.

Chat With a Property Management Company

When you rent out your cottage, you’re not only a landlord but also a businessperson. These two hats might be difficult to exchange, especially if neither is your forte.

Property managers help you manage your marketing needs, your booking agreements and more. Partnering with a reputable rental company is sure to give you invaluable assistance and peace of mind, but it’s important to team up with a company with niche experience in cottage rentals.

For example, RentCottage.com, in Ontario, Canada is a top-quality property management company for cottage rentals in Ontario. It doesn’t just manage your properties, but also professionally photographs the site for listing, recommends changes for marketability, and will meet you at your property to provide a detailed estimate for revenue potential.

Understand Your Location’s Tax Laws

Taxes vary based on the location of your cottage. In some areas, you may need to claim rental fees as additional income, while in others, there might be some tax benefits. In Ontario, for example, most of the expenses that you incur on your rental property are tax-deductible against your income. You may also be able to gain access to government-subsidized capital improvements.

Do tax research in advance of renting out your property by chatting with your accountant or financial advisor and researching online.

Adjust Your Insurance

You may need to adjust your insurance package and calculate the additional fees you’ll incur.

As with the above, the type of insurance that you need to acquire will vary based on your location. In most instances, you should consider landlord insurance (which will cover your guests’ belongings against vandalism and theft) and liability coverage — in case of accidental injury.

Give the Cottage a Neutral Atmosphere

Décor and furnishings will also need to be considered, and potentially revamped.

While it’s okay to have a few ornaments and decorative pieces in the cottage, it’s a good idea to make the space as neutral as possible while adding subtle regional touches (think nautical ornaments if you’re near a dock or waterfront).

Keeping things neutral but cleverly themed will ensure your renters can fully relax without feeling like they’re encroaching on someone else’s space.

Think About Furniture and Design Choices

Similarly, if your cottage has highly personalized paint colours throughout, like murals or kids’ bedroom colours, consider painting the walls in natural tones. This is also an excellent way to bring the outdoors in.

If your furniture has seen better days, invest in new couches and mattresses to set a tone of cleanliness and luxury. If guests arrive to threadbare sofas, they’re unlikely to return or to treat the space with care.

Managing Maintenance and Cleaning

Another consideration is maintenance. If a tap starts to drip incessantly or a spindle on a banister snaps, are you close by to fix it? Have you considered snow shovelling services if you’re renting your cottage in the wintertime?

This is why it’s essential to keep cleaning services in mind. While cleaning the cottage yourself is not unrealistic, doing so will restrict your lifestyle as you need to be around on move-in and move-out days.

Fortunately, some companies can help with both maintenance and cleaning. Avoid any potential issues by planning ahead — and factoring services such as these into the rental fees in advance of renting out your property.

Renting out a new or long-cherished family cottage can be a fantastic way to make some supplementary income while retaining property ownership, making sure you and yours can still enjoy the space for many years to come.