Increasing property taxes could force cottage owners to look for more renters
The 2012 MPAC Assessment is currently in the mail and Ontario property owners who own cottages, ski chalets and vacation homes need to be on the look out, warns Mara Sofferin, VP at CottageCountry, a popular Canadian online vacation rental site.
With some 17,000 vacation properties available, the site is one Canada's largest source for cottage and vacation rentals, a key source of income for many vacation property owners, particularly those feeling a bit cash-strapped.
In such cases, rental revenue can help cover costs like mortgage, maintenance and increased property tax payments, or simply be a source of supplemental income.
"When the assessment arrives, likely so will the news of much higher annual property taxes, adding another expense to the already costly endeavor of owning a vacation property," she maintains.
In addition to being a secure platform through which property owners can connect with potential renters, sites like CottageCountry, Home Away and Vacation Rentals By Owner provide owners with a suite of tools that streamline the rental process, from screening guests to processing online bookings and payment.
At the same time, buyers can now book a cottage or chalet rental as easily as they would a hotel room without sending
cheques to strangers via snail mail, says Sofferin.
"Most people are not aware how easily and autonomously they can rent out their vacation properties or how much money they could be making. We want to educate all Canadian vacation property owners on this opportunity and enable them to be really successful," says an excited Sofferin.
Do you rent out your vacation property? Solo or third party? As an owner or renter, have you had a good experience using rental aggregators?
By Gordon Powers, MSN Money
Posted by: Dr. J. Kalmar | Nov 12, 2021 8:51:21 PM
Renters! Not a chance! Renters have no respect for your property. If people want to have a lakefront property, go buy one. If you can't afford it, TOUGH!
Posted by: SP | Nov 12, 2021 9:44:11 PM
Dr. J. Kalmar states it as it is.
If you can't afford one, don't buy one.
Everything else leads to tears
Posted by: Really !!! | Nov 13, 2021 12:40:59 AM
Not so fast on the rental putdowns. I rent Florida condos for 2 months every year and haven't had any problems with any of the owners. I actually leave the property cleaner than when I move in... notwithstanding the cleaning fee I still have to pay. No need to paint everyone with the same brush.
Posted by: terri | Nov 13, 2021 4:54:02 AM
I own a cottage property. I have never rented it out and I agree it could be a source of income. Unfortunately, I have friends who have had bad experiences with renting out their properties...renters ending up with 2-3 families, damaged and blocked septic systems, cutting down trees, damage to lakefront, docks etc... my parents rented cottages and we always left the property in better shape and cleaner than when we walked in. Not all renters are bad, some love and respect nature and intend to come back to the same lake every season. Unfortunately, there are always those who give renters a bad reputation. If you are going to rent, make sure you it will be worth the costs... a septic repair can be very costly.
Posted by: Judy | Nov 13, 2021 5:39:54 AM
I'd be curious to know what the tax implications on this rental income is...since my understanding is that anything deemed income is I would assume so....if not why isn't it. As owners of a second home we purchased to offset housing for our kids to attend university in a neighbouring community we supplement the mortgage by renting out the 2spare bedrooms yet we are required by law to claim this rent in addition to our income....this fact could also impact a persons decision to rent or not....
Posted by: Mike Kinsey | Nov 13, 2021 7:34:55 AM
I have only rented out my lake front property twice over 14 years, not big problems but won't likely do it again. I have loaned it out sometimes and had no problems but the people were very close to me already. I did donate it as an auction item for a charity fund raiser and the price went pretty high. The people that got it were pretty respectful. I guess I view it s a very personal space (more than my house) so I am picky on wo I share it with.
Posted by: Chris | Nov 13, 2021 10:02:37 PM
I have rented my cottage for the past 6 years and haven't had a problem yet. I guess I have been lucky so far. But yes, each year I need to increase rent by $ 75.00 a week just to cover off the crazy property taxes on a lakefront property. This year I paid $ 7200.00 and 6 years ago when I started renting it out it was only $ 4100.00. Something has to be done about these ridiculous increases in property taxes. So far though luckily the renters haven't been complaining about the weekly increases each year.
Posted by: N ancy | Nov 14, 2021 10:25:36 PM
I don't own a rental property, but I would certainly be mindful of my insurance if I was going to rent out property. Also, yes you do have to claim rental income on your income tax but I also believe that you can claim any damage repair bills against that income; just make sure that you can prove that it was damage sustained as a result of renting and not just your own wear and tear on the property involved.