2017 LAKE STEWARDS NEWSLETTER | 23 Cottage Rental: What You Should Know by Heather Bayer CottageLINK Rental Management There’s no escaping the rising costs of cottage ownership. Whether it’s property taxes or maintenance, renovations or general repairs, the outgoings are significant and affect every owner. If you are fortunate enough to live year-round on the water, these expenses are part and parcel of your chosen lifestyle, but for part-time cottagers, the question arises at some point, “can we afford to keep doing this?” The answer may be to sell, but for many, the thought of losing the family vacation home is not an option, so renting out is often seen as the next logical step. Renting the cottage is not a new concept, however changes in the rental business worldwide are now being felt in traditional cottage markets. Sites such as Airbnb and Homeaway have made it easier to list and market a vacation home, and trends towards instant bookings have given rental guests the perception that all they need do is choose the property and pay the rental rate. In some instances this has led to people arriving on vacation completely unprepared for cottage country living. Being successful at cottage rental is much more than getting additional money to fund a new deck or dock project, or pay the taxes. It brings with it responsibilities to your neighbours, to the community as a whole, and to your guests. These responsibilities mean you need to screen your guests so you know they are the best match for your property and neighbourhood; tell them everything they need to know about enjoying your lake responsibly, and make sure you meet all municipal, provincial and insurance requirements. These tips will get you off to a good start: Check your insurance policy Most cottage policies do not give cover for short-term rentals and you will need to talk to your broker to find out if you can rent at all. You’ll need at least $2M in liability protection, plus coverage for damage. Some companies will limit the amount of weeks you are able to rent and others will have restrictions on occupancy or age of rental guests. It’s not worth the risk of renting out without insurance, so make this a first priority. Talk to your neighbours Bring your neighbours into the conversation about your plans to rent the cottage. Let them know how you plan on getting great guests and how you’ll be educating them on the etiquette of cottage living. If you are renting with an agency (the recommended route), give the neighbours their business card, so they can call if they have any concerns. Most people are worried about excessive people, dogs, and noise so reassure them of your intentions to rent responsibly. Share your cottage knowledge Each year, thousands of families head to cottage country to experience it for the first time and are often surprised by the differences they encounter. They are unfamiliar with cottage water and septic systems, the way sound travels over the water, the importance of following campfire instructions, and the general etiquette of cottage living. For example, a rental family may see a swim platform out in the water, and assume it is publicly accessible, so it’s important to share all these things with your guests. Create a ‘Welcome Book’ that describes all the quirks of the cottage and helps rental guests to enjoy their vacation without running into difficulties. Make it easy for them to contact you or your rental management company if they have a problem. Although this might look easy, there’s a lot involved in renting out a cottage, getting the right guests and managing any issues that arise. While you may argue that it is cheaper to do it yourself, the price of using a TICO registered, professional rental managementcompanyisworthit,giventheirexperience in screening and selecting guests for your cottage. CottageLINK Rental Management is a gold sponsor of FOCA, and a TICO registered rental agency. Contact us for our comprehensive booklet on Renting Responsibly in Cottage Country.