Buying a cottage this year as a rental property? Things to consider.

From 2020 to the end of 2022, Short Term Rentals (STRs) were in very high demand and we saw a lot of cottages purchased for that purpose.  Along with the elevated number of STRs came a number of issues and complaints from property owners, which has forced many townships to bring in new bylaws to regulate them.  So if you are considering purchasing a cottage and renting it out on a short term basis, you need to know if they are allowed in the area you are looking at and if they are, what the guidelines are.

Many townships allow them, but now require the property to be registered/licenced with a yearly fee to be paid.  There could be a demerit system when there are complaints laid and after a set number you lose your licence; you may have to hire someone, in the event that you do not live near by, so that they can attend the property if there is a complaint; there may be a set number of people allowed at the property i.e. 2 persons per bedroom; the septic system may be considered; parking area may be considered with a limit to number of vehicles; there may have to be an inspection required.  Each township can have different bylaws so it’s important to know what they are when you are viewing property.

As a current cottage owner that just wants to make a little extra to help pay the taxes, check the bylaws where your cottage is located.  They may have changed or be changing in the near future.