Thinking about renting out your cottage, chalet, or cabin?

At some point when you realize that your cottage sits empty for all but a few weekends, the idea of renting it out may occur to you. Perhaps you have seen the statistics relating to the demand for rental cottages, or perhaps you purchased your cottage for the future, when you are ready to retire and in the meantime you are not getting as much use out of it as you might.

We have created a short article to help you decide if that is a realistic goal for you at this time or not, and to give you an overview of how much work, cash, and time it will really require.

Profitably renting out your cottage/cabin/chalet

The budget.

Buying a cottage and property for the sole purpose of renting it out, and renting out a chalet/cottage that you have bought for your own use (i.e. renting it on the weeks you are not there) are two completely separate issues.

If the property is to be a money-making venture, then you must factor in all of your costs - road maintenance (if it applies), building maintenance (annual upkeep as well as incidental issues), grounds keeping, taxes, insurance, furnishing (if not bought outright initially, but pieces will need to be replaced), utilities, licenses, and property management if you are not in the area and planning to watch the cottage yourself, as well as the mortgage payment. Additionally, you should keep an emergency fund of about $4000 aside in the advent of any major surprises.

Once you tally up what the cottage REALLY costs, sit down and figure out how much of the year you envision renting it out. Housekeeping costs will vary based on cottage turnover, but for the initial calculation you can budget for a weekly cleaning, with a major cleaning twice a season.

Divide that into the number of weeks you can ideally rent the property, and then assess how much you will have to charge each week to break even - note that was break even.

Is this number realistic given the features and location of the cottage? Find out what other comparable cottages in your area are charging by perusing their websites and see if your number is in line. If it seems too high, can you extend the season of availability? Is there a way you can make your property more appealing to renters by targeting a specific niche?

Creating a niche

If your property is in a secluded area, you have a distinct marketing advantage in that you can target the retreat-seekers, or market it as the perfect locale for a romantic getaway. If it is in a high-traffic area full of younger neighbours, consider presenting it as the perfect family getaway.

There are likely some changes that you will have to make to your cottage if you are looking to attract a specific kind of clientele as opposed to the generic first-come first-served crowd, but they may mean the difference between being booked continually, and having down time.

Child-proofing: the number one concern for family cottages. Do you have stairs? Consider providing gates or well-placed doors that can prevent tumbles. How deep is the water? Are there sharp stones or is the beach sandy. Take a walk around your property casting the critical eye of a parent over every aspect of the cottage and grounds. What changes do you need to make, or what improvements can be put into place for the next season? How rugged and comfortable is the furniture? Is there a good (safe) spot for a swing?

Romance & tranquility. How is your decor? Consider investing in some soft slipcovers for the furniture in a pale cream or white. If you supply linens and pillows, are they appropriate for setting the mood? Are there speakers available for the visitors to plug in their portable CD player? Make sure you provide candle-holders that will prevent fires as opposed to relying on whatever they may bring with them - think about supplying floating candles and a built-in dish for them. Is there a secluded area where you can install a swing for two with an incredible view? A porch perhaps? If you are interested in going all out, what about having a hot tub installed, or a bath for two?

Visitors will expect to pay extra for these luxuries and it is a more targeted market - plus word of mouth and repeat visitors will work to cut down on your advertising costs.

Dealing with client inquiries

If you decide not to hire out the property management to a company (more on this option later), expect to have to deal with the booking issues yourself. You will need to invest in a good integrated scheduler that allows you to track the weeks that the cottage is rented, whether the visitors have sent in their deposits, how long they have before they forfeit the booked period (if they don't send in the deposit), when the cleaners are to be in, etc. A properly set up accounting system can make all the difference at tax time - and save you many a headache.

Other considerations

Insurance: fire, theft, flood, damage

According to the Insurance Bureau of Canada, you must consider carefully the possible damage to your cottage before seeking out insurance. If there is a risk of damage caused by malice (vandalism, for instance), make sure that you specify this to your insurance broker up front.

Assess the other structures on the property that may need to be replaced or repaired such as fences, sheds, decks, and other outlying buildings.

Be sure to specify whether the building is inhabited year-round as coverage for seasonal buildings is not as comprehensive.

Speak to your insurance broker for specific information.

Cleaners

Word of mouth and goodwill is a big factor in a maintaining a successful cottage-rental business. Guests who have to begin their vacation by scrubbing the premises have a less favourable recollection of their stay - and this does not make for repeat business or referrals.

Remember, it is cheaper to have return visitors come to your property than to advertise and find new ones each year.

Considering hiring a local cleaning lady or handyman to come in and clean the cottage/cabin/chalet between stays. There are often local people who can be hired on a seasonal basis, and this fee should be factored into the rental rate.

Once or twice a season budget to have a thorough cleaning done - the first cleaning of the season, somewhere midway through, and then again before the cottage is shut down for the winter - if the rentals are not year-round.

If you are concerned that you cannot inspect the premises to make sure that the work is being done to your satisfaction, ask the guests. Make it part of your policy to have the guests rate their stay - either with an online form, or by mailing them a hard copy version. It is another opportunity to "touch" your clientele and give them a positive view of your interaction.

Property Management

Imagine receiving a monthly or bi-monthly cheque or deposit without having to advertise, book, manage, and maintain your property. It is possible if you hire a property management company that specializes in cottage/cabin/chalet rentals.

If you do not live in the area of your rental property, it might be well worth the investment to hire a third party to oversee the details. They will ensure that the cottage is looked after and does not experience the potential damages that unattended properties often undergo, even checking on it during the off-season if that is part of the arrangement you make.

When picking a property management company, be sure to ask for references, find out precisely what they will be charging the renters (is it a percentage or your rate or a flat fee on top of it), as well as a list of the services they provide, and whether or not they have people on call for emergencies, etc. Ask other cottage owners who they recommend; most people are more than willing to share their experiences with you.

Advertising your cottage/cabin/chalet

As with most products being advertised, use a strong headline that will grab their attention, invoke an emotional response, and speak to the primary benefit of choosing your cottage/chalet/cabin.

If the primary benefits of choosing your cottage is tranquility: tell them. Family fun and long lasting memories? That's great too.

Use your ad space to make them want to find out more, and then give them a way to get it. Be sure to include your contact information; not everyone is 100% comfortable with technology; some people might call for a pamphlet or other printed collateral.

What to include on your website - a checklist for cottage-owners.

Don't underestimate the importance of a well-put together website. Instead of the few lines that you have with your ad in a newspaper or magazine, you can have far more time with your visitor to get the benefits and features across - if you hold their interest.

You have one chance to make that first impression with your potential clients. It is true for any business, and make no mistake, renting your cottage must be viewed as a business opportunity.

Remember, on the Internet, your competitors are just a click away.

It is amazing how many rental cottage owners miss the basics. Here is a checklist that will help ensure that your website reaches its potential.

Contact information - clear simple instructions to get hold of you - and not just via email.
Photos - preferably with dates and solid descriptions of the contents.
What is the view like? What does the sleeping area look like? Kitchen? Bathroom? Exterior?
There should be at least six (6) photos per cabin/cottage/chalet available - and the format should be a page with thumbnails (no more than 200pixels x 200 pixels - and better still 150 or 175 pixels) which click through to a larger image - no more than 600 pixels wide or 75 kilobytes. Remember, there are still people on dialup, and while they will be reasonably patient, if it is excessive, they will go elsewhere.
Description - this should include information about the neighbouring cottages, the waterfront, whether it is rustic or modern, wooded, secluded, etc. Paint a picture of the time they will spend there and appeal to them on an emotional level.
What is included in the rental rates?
Are linens included in the fee? Is there a washing machine on the premises? A luxury bath?
Be sure to list all the features and don't assume that the visitor will guess what your cottage/chalet has to offer.
What is there to do in the area?
How close is the nearest town and what amenities does it have?
Is there a local attraction like caves or a specialty museum?
What is there to do if they choose to stay for two weeks or more?

Useful tools for cottage-owners

We've searched high and low to find tools that will make your life as a cottage owner easier. This list will grow as we find

Online rental calendar

We recommend that you use one central online availability calendar for your rental cottage/chalet/cabin and link to it from your other directory listings and/or your main website.

This means that you only have one calendar to maintain and update rather than going from site to site and adding/removing available dates.

We recommend the free one at http://www.rentors.org/ but there are others online.

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Basics Cottage Rental Tips For Owners For Renters What to ask Family Time Cottage Romance Cottage as Retreat Food	Thinking about renting out your cottage, chalet, or cabin? At some point when you realize that your cottage sits empty for all but a few weekends, the idea of renting it out may occur to you. Perhaps you have seen the statistics relating to the demand for rental cottages, or perhaps you purchased your cottage for the future, when you are ready to retire and in the meantime you are not getting as much use out of it as you might. We have created a short article to help you decide if that is a realistic goal for you at this time or not, and to give you an overview of how much work, cash, and time it will really require. Profitably renting out your cottage/cabin/chalet The budget. Buying a cottage and property for the sole purpose of renting it out, and renting out a chalet/cottage that you have bought for your own use (i.e. renting it on the weeks you are not there) are two completely separate issues. If the property is to be a money-making venture, then you must factor in all of your costs - road maintenance (if it applies), building maintenance (annual upkeep as well as incidental issues), grounds keeping, taxes, insurance, furnishing (if not bought outright initially, but pieces will need to be replaced), utilities, licenses, and property management if you are not in the area and planning to watch the cottage yourself, as well as the mortgage payment. Additionally, you should keep an emergency fund of about $4000 aside in the advent of any major surprises. Once you tally up what the cottage REALLY costs, sit down and figure out how much of the year you envision renting it out. Housekeeping costs will vary based on cottage turnover, but for the initial calculation you can budget for a weekly cleaning, with a major cleaning twice a season. Divide that into the number of weeks you can ideally rent the property, and then assess how much you will have to charge each week to break even - note that was break even. Is this number realistic given the features and location of the cottage? Find out what other comparable cottages in your area are charging by perusing their websites and see if your number is in line. If it seems too high, can you extend the season of availability? Is there a way you can make your property more appealing to renters by targeting a specific niche? Creating a niche If your property is in a secluded area, you have a distinct marketing advantage in that you can target the retreat-seekers, or market it as the perfect locale for a romantic getaway. If it is in a high-traffic area full of younger neighbours, consider presenting it as the perfect family getaway. There are likely some changes that you will have to make to your cottage if you are looking to attract a specific kind of clientele as opposed to the generic first-come first-served crowd, but they may mean the difference between being booked continually, and having down time. Child-proofing: the number one concern for family cottages. Do you have stairs? Consider providing gates or well-placed doors that can prevent tumbles. How deep is the water? Are there sharp stones or is the beach sandy. Take a walk around your property casting the critical eye of a parent over every aspect of the cottage and grounds. What changes do you need to make, or what improvements can be put into place for the next season? How rugged and comfortable is the furniture? Is there a good (safe) spot for a swing? Romance & tranquility. How is your decor? Consider investing in some soft slipcovers for the furniture in a pale cream or white. If you supply linens and pillows, are they appropriate for setting the mood? Are there speakers available for the visitors to plug in their portable CD player? Make sure you provide candle-holders that will prevent fires as opposed to relying on whatever they may bring with them - think about supplying floating candles and a built-in dish for them. Is there a secluded area where you can install a swing for two with an incredible view? A porch perhaps? If you are interested in going all out, what about having a hot tub installed, or a bath for two? Visitors will expect to pay extra for these luxuries and it is a more targeted market - plus word of mouth and repeat visitors will work to cut down on your advertising costs. Dealing with client inquiries If you decide not to hire out the property management to a company (more on this option later), expect to have to deal with the booking issues yourself. You will need to invest in a good integrated scheduler that allows you to track the weeks that the cottage is rented, whether the visitors have sent in their deposits, how long they have before they forfeit the booked period (if they don't send in the deposit), when the cleaners are to be in, etc. A properly set up accounting system can make all the difference at tax time - and save you many a headache. Other considerations Insurance: fire, theft, flood, damage According to the Insurance Bureau of Canada, you must consider carefully the possible damage to your cottage before seeking out insurance. If there is a risk of damage caused by malice (vandalism, for instance), make sure that you specify this to your insurance broker up front. Assess the other structures on the property that may need to be replaced or repaired such as fences, sheds, decks, and other outlying buildings. Be sure to specify whether the building is inhabited year-round as coverage for seasonal buildings is not as comprehensive. Speak to your insurance broker for specific information. Cleaners Word of mouth and goodwill is a big factor in a maintaining a successful cottage-rental business. Guests who have to begin their vacation by scrubbing the premises have a less favourable recollection of their stay - and this does not make for repeat business or referrals. Remember, it is cheaper to have return visitors come to your property than to advertise and find new ones each year. Considering hiring a local cleaning lady or handyman to come in and clean the cottage/cabin/chalet between stays. There are often local people who can be hired on a seasonal basis, and this fee should be factored into the rental rate. Once or twice a season budget to have a thorough cleaning done - the first cleaning of the season, somewhere midway through, and then again before the cottage is shut down for the winter - if the rentals are not year-round. If you are concerned that you cannot inspect the premises to make sure that the work is being done to your satisfaction, ask the guests. Make it part of your policy to have the guests rate their stay - either with an online form, or by mailing them a hard copy version. It is another opportunity to "touch" your clientele and give them a positive view of your interaction. Property Management Imagine receiving a monthly or bi-monthly cheque or deposit without having to advertise, book, manage, and maintain your property. It is possible if you hire a property management company that specializes in cottage/cabin/chalet rentals. If you do not live in the area of your rental property, it might be well worth the investment to hire a third party to oversee the details. They will ensure that the cottage is looked after and does not experience the potential damages that unattended properties often undergo, even checking on it during the off-season if that is part of the arrangement you make. When picking a property management company, be sure to ask for references, find out precisely what they will be charging the renters (is it a percentage or your rate or a flat fee on top of it), as well as a list of the services they provide, and whether or not they have people on call for emergencies, etc. Ask other cottage owners who they recommend; most people are more than willing to share their experiences with you. Advertising your cottage/cabin/chalet As with most products being advertised, use a strong headline that will grab their attention, invoke an emotional response, and speak to the primary benefit of choosing your cottage/chalet/cabin. If the primary benefits of choosing your cottage is tranquility: tell them. Family fun and long lasting memories? That's great too. Use your ad space to make them want to find out more, and then give them a way to get it. Be sure to include your contact information; not everyone is 100% comfortable with technology; some people might call for a pamphlet or other printed collateral. What to include on your website - a checklist for cottage-owners. Don't underestimate the importance of a well-put together website. Instead of the few lines that you have with your ad in a newspaper or magazine, you can have far more time with your visitor to get the benefits and features across - if you hold their interest. You have one chance to make that first impression with your potential clients. It is true for any business, and make no mistake, renting your cottage must be viewed as a business opportunity. Remember, on the Internet, your competitors are just a click away. It is amazing how many rental cottage owners miss the basics. Here is a checklist that will help ensure that your website reaches its potential. Contact information - clear simple instructions to get hold of you - and not just via email. Photos - preferably with dates and solid descriptions of the contents. What is the view like? What does the sleeping area look like? Kitchen? Bathroom? Exterior? There should be at least six (6) photos per cabin/cottage/chalet available - and the format should be a page with thumbnails (no more than 200pixels x 200 pixels - and better still 150 or 175 pixels) which click through to a larger image - no more than 600 pixels wide or 75 kilobytes. Remember, there are still people on dialup, and while they will be reasonably patient, if it is excessive, they will go elsewhere. Description - this should include information about the neighbouring cottages, the waterfront, whether it is rustic or modern, wooded, secluded, etc. Paint a picture of the time they will spend there and appeal to them on an emotional level. What is included in the rental rates? Are linens included in the fee? Is there a washing machine on the premises? A luxury bath? Be sure to list all the features and don't assume that the visitor will guess what your cottage/chalet has to offer. What is there to do in the area? How close is the nearest town and what amenities does it have? Is there a local attraction like caves or a specialty museum? What is there to do if they choose to stay for two weeks or more? Useful tools for cottage-owners We've searched high and low to find tools that will make your life as a cottage owner easier. This list will grow as we find Online rental calendar We recommend that you use one central online availability calendar for your rental cottage/chalet/cabin and link to it from your other directory listings and/or your main website. This means that you only have one calendar to maintain and update rather than going from site to site and adding/removing available dates. We recommend the free one at http://www.rentors.org/ but there are others online. Links Expert advice on rental properties Disposition of a Rental Property Cottage fire prevention tips from the Insurance Bureau of Canada

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