Is renting worthwhile?
Trying to find suitable renters and coordinating a rental can be time consuming. Underestimating the effort required to rent and overestimating the rental income are common mistakes. Make sure you go through a full analysis before you take the plunge. This is most important if you are contemplating the purchase of a cottage that requires the support of rental income. Remember: Purchasing and maintaining a cottage is a major financial investment and a significant time commitment.
Use of a Rental Management service:
Unless you have experience with rental properties and recreational properties in particular, consider using one of the many Rental Management services (a popular one offers the Toolkit below). Although there is a fee involved, it may be well worth it by avoiding the cost of repairs or problems caused by problem renters.
Prepare a Cottage Information Kit:
Even if you are not renting, preparing such a kit is very handy. The kit should cover key topics such as safety, operating appliances, courtesies with neighbours, lake information, household rules and important systems such as the septic, garbage and well water.
Use the GBCLA Handy Guide to Bobs and Crow Lakes as your starting point for preparing your own Information Kit.
Advising your insurance company, verifying what coverage extends to renters and the cost of any necessary increases to coverage are critical to protecting your investment in your cottage.
As the cottage owner even with insurance, you should strive to always protect yourself. This means that potential liabilities should be avoided including: no access to motorized vehicles or watercraft, no childrens’ life jackets and full disclosure of any safety hazards on the property and the lake.
Careful Screening of Renters:
The best way to screen is to personally meet the renter. Online renting while convenient and less time consuming can ultimately create problems or headaches that might be avoided through a personal meeting. Avoid using sites like Kijiji and Craig’s List.
A well-written rental agreement is essential for both you and the renter.
Marketing your Property:
There are so many cottage rental properties on the market. Competition is fierce and the rental cost is not always the major draw.
If you want to be successful in renting and make the venture worth your time and effort, then having a complete marketing plan is essential.
From setting up your own web site, photography, information kits, a well-presented interior and prompt communications are all features that attract higher quality renters.
Visit this web site for a free Toolkit on rentals. (GBCLA does not endorse this business.)