HAVE YOUR CAKE* (LAKE) AND EAT IT, TOO!

Canadians have a special relationship with the May 24th long weekend. Although the official first day of summer is still a month away – and in the more northern parts of Ontario, there is still the threat of snow at this time of year – we as Canadians are quick to embrace this long weekend as the official start to the summer season. Garden centres are in full bloom, the winter gear has been put away, and plans to get the most out of our short summer season are well underway.

Oh, and the leafs are out of the playoffs. Again. Right on schedule.

Over the past 2 years a lot of people have turned their attention to cottages and vacation homes. They have provided a great escape from dense urban areas and, with fast internet coverage throughout most cottage areas, a viable location to work remotely.

Nothing beats being on a zoom call while sitting on your deck, sipping a coffee and looking out over the lake!

While cottage country has experienced a similar run up in prices this past year, this is one area of the market that is more elastic and will drop back faster than most urban residential areas. It doesn’t mean cottages are a bad investment. What it does mean is that cottages should be treated like any other investment property. Yes, a lot of people will buy a cottage or a vacation home as a family retreat. And, they can become a much more affordable (and even become a viable cash-flowing investment) at the same time.

Many of our clients rent their cottages out throughout the year, generating enough income to cover taxes, maintenance and mortgage payments. I can’t think of a better way to enjoy your own oasis, especially when someone else is footing the bill!

Owning a cottage, or any investment property for that matter, isn’t for everyone. Of course, it is not in everyone’s budget. And even if an investment property is accessible, there is work involved, and risk. Some people are just not comfortable dealing with tenants, and don’t want the hassle of turning over short-term rentals. There are companies like Serenity Vacation Rentals (which I am a partner of, for those who don’t know) that professionally manage your property, maximizing the rental income and minimizing the risk and hassle for you as the owner.

Companies like Serenity Vacation Rentals use a dynamic pricing model that calculates the daily and weekly rental rates based on the demand in your area. If you’ve watched airline tickets fluctuate in price, that’s dynamic pricing at work. They also streamline booking, cleaning and maintenance services – so you don’t have to reinvent the wheel to get into the short-term rental market.

Demand for cottage and vacation rentals is still very high and is predicted to remain high as a lot of people will still avoid travelling outside the country, and are looking for a more “Canadian” vacation experience.

If you’re like a lot of people, who would love to own a lakefront cottage and don’t think it would be affordable, renting your cottage could be the option for you. Imagine spending this weekend opening your cottage for the season and enjoying BBQs, beverages and beautiful views with your friends and family. And then next weekend, another family gets to enjoy the same experience, while taking the financial strain off of you. Even in this market, owning a vacation home might be more accessible than you think.