Data on cottage rentals in Ontario?
February 25, 2022 2:22 PM Subscribe
My wife and I are looking into the possibility of purchasing a cottage to rent out as a source of income and are trying to figure out the best way to research to find out if it's a good idea or not.
Is there somewhere we'd be able to find data on what areas are most popular for cottage rentals, how much of the year cottages tend to be rented out and what we could expect to charge for renting it out? We're basically trying to determine whether it makes financial sense or not. We've looked at similar listings, but hoping there might be other data available somewhere. We're located in Southwestern Ontario.
Is there somewhere we'd be able to find data on what areas are most popular for cottage rentals, how much of the year cottages tend to be rented out and what we could expect to charge for renting it out? We're basically trying to determine whether it makes financial sense or not. We've looked at similar listings, but hoping there might be other data available somewhere. We're located in Southwestern Ontario.
Best answer: Cottage Life has some of the information, especially in there back issues. As will some local realtors in the area you target (they are trying to sell to you though so keep their bias in mind). I live in cottage country year round, but close enough that I can commute to my job in Toronto. I used to live in a very popular cottage place (non-stop parties and noise) and now live where there are no renters and it is heaven.
I have random thoughts... People renting do not want to drive very far, especially with cottage traffic, this limits you. And realtor telling you a cottage is 2.5 hours from Toronto means flying in - it is probably closer to 4 hours on a Friday/Sunday. Not all routes to cottage country have EV chargers, you will need to exclude areas with poor coverage (the Trans Canada going through the Kawarthas is especially poor for charging infrastructure). Traditionally, Muskoka was most expensive, and north of Parry Sound, Bruce Peninsula, and Manitoulin Island were cheaper. Peelee Island and Prince Edward Country have exploded in price and desirability. In theory a place halfway between Ottawa and Toronto would attract residents from both but Torontonians tend to not want to drive that far/think that area is as desirable. They also want houses on a lake as opposed to cabins with no dishwashers and screen windows instead of AC.
I agree that if it isn't waterfront you won't have the same demand at all - and waterfront to most people is large or medium-sized lake with clear (non-weedy) shorelines - not small lakes or rivers. Keep in mind some areas are known for their seasonal bugs, which you won't be aware of if you buy before the summer. Most four-season cottages will probably be out of your price range as cottage county has filled with remote workers and early boomer retirees the past couple of years. Three season cottages can have significant problems, especially if you are not familiar with opening and closing maintenance of cottages. People want more than one bathroom - adding extra bathrooms can be very expensive due to septic and well considerations. Well water is hard on appliances too - so factor in replacing your appliances more than you would in the city. Only buy a fixer-up-er if you can do the work yourself. There are waaaaay more people looking for contractors than there are contractors: things like snow-plowing, dock install/removal, well pump issues etc are hard to find workers for. People paying $2-6,000 a week for a cottage expect everything to work - if you don't have a reliable handy person on-call 24/7 then make sure the cottage is close enough for you to drive up and deal with the problem (which means you may be driving in that same hellish cottage traffic). Your neighbours may hate you if you buy in a quieter, established area and bring partiers. Good relationships with neighbours is very important.
Google the Lake and reach out to the local lake association/read past news articles - things like what happened at Rice Lake with the weeds aren't well-known outside the local area but will impact your ability to rent. Leased land is cheaper but you run the risk of the Nation choosing to not renew the lease or make other changes you would not like (such as restricting access during pandemic). Renters want to be on the North/Northeast shore of the Lake and being around Crown land is preferred but comes at a premium. Exclude any boat-access only cottages - people do not want to rent them. In addition to the house, renters expect you to provide water toys (kayaks etc) - expect to have to replace them frequently though misuse/being stolen because renters don't lock shit up not realizing how much crime of opportunity happens in cottage country. Renters also want to build fires with no awareness of how dangerous they can be (both inside and out) and to discourage them bring diseased firewood you will need to supply it. When renters see that face cord you supplied they may have bonfires rather than campfires, literally burning your money.
Good luck finding a place. The inventory is very, very low and the prices are high, high high.
posted by saucysault at 5:00 PM on February 25, 2022 [9 favorites]
I have random thoughts... People renting do not want to drive very far, especially with cottage traffic, this limits you. And realtor telling you a cottage is 2.5 hours from Toronto means flying in - it is probably closer to 4 hours on a Friday/Sunday. Not all routes to cottage country have EV chargers, you will need to exclude areas with poor coverage (the Trans Canada going through the Kawarthas is especially poor for charging infrastructure). Traditionally, Muskoka was most expensive, and north of Parry Sound, Bruce Peninsula, and Manitoulin Island were cheaper. Peelee Island and Prince Edward Country have exploded in price and desirability. In theory a place halfway between Ottawa and Toronto would attract residents from both but Torontonians tend to not want to drive that far/think that area is as desirable. They also want houses on a lake as opposed to cabins with no dishwashers and screen windows instead of AC.
I agree that if it isn't waterfront you won't have the same demand at all - and waterfront to most people is large or medium-sized lake with clear (non-weedy) shorelines - not small lakes or rivers. Keep in mind some areas are known for their seasonal bugs, which you won't be aware of if you buy before the summer. Most four-season cottages will probably be out of your price range as cottage county has filled with remote workers and early boomer retirees the past couple of years. Three season cottages can have significant problems, especially if you are not familiar with opening and closing maintenance of cottages. People want more than one bathroom - adding extra bathrooms can be very expensive due to septic and well considerations. Well water is hard on appliances too - so factor in replacing your appliances more than you would in the city. Only buy a fixer-up-er if you can do the work yourself. There are waaaaay more people looking for contractors than there are contractors: things like snow-plowing, dock install/removal, well pump issues etc are hard to find workers for. People paying $2-6,000 a week for a cottage expect everything to work - if you don't have a reliable handy person on-call 24/7 then make sure the cottage is close enough for you to drive up and deal with the problem (which means you may be driving in that same hellish cottage traffic). Your neighbours may hate you if you buy in a quieter, established area and bring partiers. Good relationships with neighbours is very important.
Google the Lake and reach out to the local lake association/read past news articles - things like what happened at Rice Lake with the weeds aren't well-known outside the local area but will impact your ability to rent. Leased land is cheaper but you run the risk of the Nation choosing to not renew the lease or make other changes you would not like (such as restricting access during pandemic). Renters want to be on the North/Northeast shore of the Lake and being around Crown land is preferred but comes at a premium. Exclude any boat-access only cottages - people do not want to rent them. In addition to the house, renters expect you to provide water toys (kayaks etc) - expect to have to replace them frequently though misuse/being stolen because renters don't lock shit up not realizing how much crime of opportunity happens in cottage country. Renters also want to build fires with no awareness of how dangerous they can be (both inside and out) and to discourage them bring diseased firewood you will need to supply it. When renters see that face cord you supplied they may have bonfires rather than campfires, literally burning your money.
Good luck finding a place. The inventory is very, very low and the prices are high, high high.
posted by saucysault at 5:00 PM on February 25, 2022 [9 favorites]
Best answer: You may be interested in AirDNA or its competitor Mashvisor
posted by Press Butt.on to Check at 4:12 AM on February 26, 2022
posted by Press Butt.on to Check at 4:12 AM on February 26, 2022
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You’ll need to make some assumptions about how many weeks a summer you can rent, July and August are key and can be priced higher.
Maintenance and cleaning staff to manage turnover will be important considerations.
Lakefront and internet are key. # of people it sleeps is important for pricing
Airbnb has a nice range, and there are lots of other cottage focused sites.
Prices are at any all time high. Best of luck
posted by walkinginsunshine at 2:47 PM on February 25, 2022