To rent or sell?

[danbouck]

My buddy Josh has inherited a Lakefront cottage North of Huntsville. There is still a mortgage on it and he's not sure whether to sell or rent it out. Does anybody know how much work it is to rent out a cottage? How much should he be asking per week? I am trying to help him out with this and we are considering splitting the mortgage between 5 of us. He just wants to be able to cover the mortgage payments every month.

 

Below are some pics and info

 

Located in Kearney, ON

 

Fully insulated home on lake, front private bay. Access to 3 adjoining lakes. Good sports fishing. Vinyl sided 2 bedroom home + util. rm. with washer/dryer. 13 x 20 grand living room with cathedral ceiling. Kit; dining rm.; enclosed sun room. 1 Bathroom, 2 lots approx. 2 acres. Deck overlooking lake. Wood/elec heat; drilled well with water filtration system. New septic. Docks in A-1 condition. 200 amp service with underground hyrdro. Year round access. Walk to town

 

 

 

 

 

 

 

Thanks in advance,

 

Dan

[mistaredone]

$8-900 a week would be my guess. I spend 40 plus hours every year serching for a cottage to rent. Go through a rental service like cottage link or cottages on the web to avoid the hassels of dealing with people. Cleaning services once a week and it's pretty hands free work.

[JohnF]

Here I am again pushing realtor services.

 

If I had that decision to make I'd check out the local realtors and cottage rental services to ask what the rent should/could be and what management services would cost. That takes away all the hands-on stuff and leaves it in the hands of professionals for a nominal fee. The benefit is, besides eliminating personal involvement, is a better vacancy rate and better screening of renters.

 

At the same time ask a realtor for a CMA, a market value estimate that tells you what the property should sell for.

 

None of this has to cost a penny if you approach it the right way and you'll have made an informed decision instead of guessing.

 

JF

[pikehunter]

Why not sell off the 2nd lot and rent the place out? Take the proceeds from the lot sale and pay down the mortgage. Or...build a new place on the empty lot and sell the original one.

[Big Cliff]

If going to rent, go through an agency it is worth every penny!

 

The guy two doors down from us just bought his place last year and decided to rent it out himself. He has it advertised @ $1200.00 a week. It is a 3 bedroom cottage with a very old septic system.

 

Last weekend we counted 12 cars, 20 plus young people who partied until 3 am., were climbing over our fences at 11:30 at night looking for their dog, screaming and yelling, foul language. There is a family on the other side of them with two young kids, the rest of us are older but have to get up and go to work in the morning.

 

The owner and I are going to be having a little talk next time I see him. It sounds like in your situation it is a little more isolated but you really don't want to get a bunch of jerks in there for a week and end up pissing off the locals, they could make life very uncomfortable.

[danbouck]

Thanks for the help guys, where would I a find rental agency?

[Roy]

I have no experience with these guys Dan but maybe they could be your starting point. They are in Huntsville. : http://www.cottagevacations.com/index.html

[Billy Bob]

I have rented homes in Florida and private cottages in Ontario without any problems dealing directly with the owners via the internet. With that said I REALLY do my homework before I fork over any $$$ for a down payment and even then I am concerned until I am finally resting in said vacation dwelling......HOWEVER, in your case you have a LOT more to lose then the 6-9 hundred dollars I fork out for the week so I would use an agent as already mentioned...then maybe you can build a GOOD relationship with some repeat renters and take over the business yourself. Older couples or responsible families is definitely the way to go IMHO.

 

BTW PM me and if it's a lake I would like to fish my wife and I may be interested in renting it.

Bob

[bushart]

I guess being there's still a mortgage on it they may not have owned it too long?

 

In some cases when you inherit a secondary dwelling like a cottage the gov't wants their share in an inheritance tax.

 

This boils down to they tax you on what the cottage was purchased for way back when and what it's worth today.

 

May wish to look into this one??

[JohnF]

Thanks for the help guys, where would I a find rental agency?

 

Ask a realtor. Some real estate offices double as cottage rental agents. That would let you do everything with one call.

 

JF

[Tarzan's Jane]

I don't own a cottage but will be renting one in a few weeks. Paying $900.00 for one week for a two-bedroom which sleeps 8 and comes fully equipped. I thought it was a bit too much but then we are splitting with another couple. Can you imagine the $$$ that would come in and help pay for the mortgage etc at $900.00 a week.

 

Looks like a nice cozy little place - should have no problem renting it or selling. It's always nice though to give it a shot and see if you all can't hang onto it.

 

All the best,

[Tarzan's Jane]

You could also try advertising on Grapevine. Lots of real estate agents frequent that site and like to get in on the action especially when there is little work for them. Often....you can avoid paying out big $$$ by doing a bit of leg work and research. I would think that you will have more luck next year and I know from experience that people like to start looking early.

 

The cottage I will be renting was from an add put up in a Government Office Building....it costs nothing here to advertise on our internal site and when you are ready to advertise it, I would be willing to post it here for you.

[smally21]

id say its worth about 200 a week. please advise ill take all vacancies.

but seriously i shop around and rent a couple of times a year usually runs min 800 max 1200 a week. low and high season periods just aggravate me as a customer, its worth what is fair. keep the pets and the smokers out and most people will be happy with a neat, well equipped cottage. good luck.

[ch312]

The owner and I are going to be having a little talk next time I see him. It sounds like in your situation it is a little more isolated but you really don't want to get a bunch of jerks in there for a week and end up pissing off the locals, they could make life very uncomfortable

 

this sounds like a typical senior whining about young people having a good time...just like they used to

 

what do you plan on gaining from this little talk? there is basically no way for the owner to predict how the renters are going to act on their vacation so telling him to choose better people wont work. suggesting age limits wont work as he'll get no business. giving them the boot after they have been partying all night would likely result in vandalism.

[Roy]

this sounds like a typical senior whining about young people having a good time...just like they used to

 

what do you plan on gaining from this little talk? there is basically no way for the owner to predict how the renters are going to act on their vacation so telling him to choose better people wont work. suggesting age limits wont work as he'll get no business. giving them the boot after they have been partying all night would likely result in vandalism.

 

Dang. Sure hope you're not talking about Big Cliff here.

[Billy Bob]

this sounds like a typical senior whining about young people having a good time...just like they used to

 

what do you plan on gaining from this little talk? there is basically no way for the owner to predict how the renters are going to act on their vacation so telling him to choose better people wont work. suggesting age limits wont work as he'll get no business. giving them the boot after they have been partying all night would likely result in vandalism.

 

Actually there could be a lot to gain by renting to a better clientèle.....in most cases the night time drunken rowdy crowd are the same that do vandalism to other people's property....they don't respect other people when it comes to being quiet late at night and they wouldn't respect property either...I know as I have had to deal with these kinds in the past.

 

Bob

[danbouck]

Update - Found a guy that is going to rent it full time starting in August which covers the mortgage. I am going up this month to check out the fishing so that we can put something together for renting it weekly next year. I'm told there is very good pike fishing there.

[Roy]

Congrats to you Dan. That's great news!

[bigbuck]

If it gets rented out for 2 months of the year, will that cover the bulk of the bills?? What about 3 months?? The only issue is that you don't get to use it for the 2 best months of the year, you get the rest of the year. It is a great way to build equity as long as you don't outstretch your resources. Good luck!!

P.S. Be very choosy about who you let rent the place. You don't need a bunch of rowdy's destroying it or vandalising someone else's property. Have a strict limit on the number of people that are allowed. Everyone thinks that they can rent a cottage that has an occupancy limit of 8 and invite their 20 closest friends to party. Uh-Uh!! Make them pay $30/head/day for any extra people to discourage this behaviour. And, check up on it during their stay.

[DRIFTER_016]

Update - Found a guy that is going to rent it full time starting in August which covers the mortgage. I am going up this month to check out the fishing so that we can put something together for renting it weekly next year. I'm told there is very good pike fishing there.

 

If you are going to rent it full time to one person/ family etc. like an apartment/rental house make sure you get them to put the utilities in their name, especially the electricity. If you don't it can come back to haunt you in certain circumstances.