Your cottage as an investment property: an increase in valueSome people make a real estate investment with the intention of selling at a profit a few years later. Escalation rates vary depending on market trends, the economy, location, type of property, etc. They are usually higher in larger cities than in smaller ones. They are usually higher in urban areas than in rural areas. Therefore, cottage appreciation rates are highly dependent on location. For example, property prices around Mont Tremblant have increased dramatically over the past year with the market in this area being more than exceptional since the pandemic began. So if you are looking to buy a chalet as an investment property, location is crucial. An analysis of the market is a wise choice in order to choose your location.
Your cottage as an investment property: rentingMany people buy a cottage with the intention of renting it out, since renting can provide a good additional income. However, you must first be well informed:
- Renting: If you intend to buy a cottage as an investment property, once again, location is crucial. Waterfront properties are the most desirable. Proximity to ski resorts is also favourable. In addition, being less than two hours away from a major city is also a plus.
- Amenities: A modern, fully equipped chalet will attract more interest. Vacationers are looking for a chalet with internet access, cable TV, a fully equipped kitchen, cleaning services, etc.
- Management: Renting a cottage requires management and maintenance tasks such as cleaning, snow removal, lawn mowing, reservation management, etc. But don’t worry, some sites, such as Kanata Tremblant, offer rental management services. We can take care of these tasks, as well as the rental ads and reservations. So you can rest easy knowing that experienced professionals are looking after your cottage.
- Associated costs: Renting out your cottage will incur certain costs such as website advertisements, maintenance, repairs, not to mention insurance. Keep in mind that rental income is also taxable. Fortunately, you can deduct many of the costs associated with the rental from your taxes.
- Regulations: Before buying a cottage for rent, make sure that provincial and municipal laws allow you to do so. For example, in Quebec, tourist rentals of less than 31 days require an official classification certificate. Find out more about the regulations in effect. By signing up with Kanata Tremblant, you can be sure that you meet all the requirements to rent out your cottage legally and without hassle.