Make your prefabricated cottage profitable by renting it out
When we talk about buying a prefabricated cottage, we often imagine that it’s a significant expense. But what if we told you that it’s actually an investment? That’s right, when you rent it out, you can kill two birds with one stone! When you’re not using your cottage, you can take advantage of the high demand and rent it out to pay off your purchase.
Prefabricated cottages are becoming increasingly popular with families, couples, and friends looking for vacation accommodations, both in summer and winter. Many travelers even prefer this type of accommodation to hotels! Here are our top tips before you embark on this project…
Choosing a good location for your prefabricated cottage
In order to maximize the rental potential of your cottage, its location is an extremely influential factor. Indeed, it is an added value that makes renting much easier. When your cottage is near a river or mountain, you will enjoy easier and, above all, more lucrative rentals.
Travelers are also willing to pay more to limit their travel. So consider being close to the city! Tourists don’t want to drive for hours just to get food. To find a promising location, you must focus on a place with a wide range of recreational and tourist activities nearby.
In addition, the choice of region can also influence the demand and rental price of your cottage. You should definitely conduct market research to better understand how the location of your cottage will affect the rental price. If the cost is too high, your cottage will not be very popular, while if you set the price too low, you will probably not recoup your investment as quickly as expected.
Build a prefab cottage perfect for renting
In order to build a cottage that meets your needs as well as those of the market, you will need to consider certain key factors when designing it. Having designed several prefabricated cottages dedicated to rental for our clients, we have acquired a great deal of expertise regarding the important elements to consider for effective rental!
For example, a rental cottage should have several bedrooms. The market has shown that cottages with three or more bedrooms have the highest rental rates. What’s more, they can fetch a higher rental price! You will also increase your chances of renting if you offer a trendy, characterful design. Don’t hesitate to add a special touch!
There are a host of other aspects to consider when designing a cottage suitable for rental.
For example:
- A four-season construction;
- An eco-friendly construction;
- An ideal size for renting;
- Easy-to-maintain materials;
- Durable materials;
- A dedicated play area;
- A cloakroom at the entrance;
- A safe interior layout suitable for children.
In order to build a cottage optimized for rental, our experts are here to advise you on the best practices to make your purchase profitable!
Use available rental platforms
Most travelers visit rental websites to consider the cottage options available to them. So consider being visible on multiple platforms to maximize your chances of renting out your cottage! Here are a few examples of popular platforms where you could list your cottage:
When advertising your cottage, don’t overlook the quality of the photos in your listing. Make sure the photos are attractive and inviting. Consider adding photos of tourist attractions near your cottage to show how close they are!
Learn about laws and regulations
Of course, there are several laws and regulations governing cottage rentals. First, since you will be earning income from renting out your cottage, you will be required to declare it. However, you will be able to deduct several operating expenses. For example, you can deduct property taxes, insurance, mortgage interest, heating, electricity, routine maintenance, repairs, and any advertising costs, etc.
When renting your cottage on a short-term basis (31 days or less), you must be registered with the Corporation de l’industrie touristique du Québec (CITQ). If you decide to rent on a long-term basis (31 days or more), you will need to register with the Régie du logement.
Don’t forget to check that the municipality where you would like to rent out your cottage allows short-term rentals!
The Maison Usinex team is ready to assist you
Making your cottage profitable is easy when the project has been thought out in detail. Our team is at your disposal to assist you in every step of the process. Make an appointment with one of our advisors!
