Three ways to rent out property
Some advice for owners of recreation properties, as well as for people considering making a purchase:
From High Country Properties Management Ltd at highcountryproperties.com:
There are three main ways to rent out your recreational property. If you buy a condominium, it’s likely there will be an onsite rental program.
Simply sign up, make a list of when the property is available for rent and you will receive a cheque, either monthly or quarterly, for revenue less expenses and a management fee.
You can also arrange for the services of an outside property management company that specializes in vacation rentals.
Again, you will need to come up with a schedule of when you want to use your vacation home.
Then, the management company will look after marketing your property, handling reservations and payment, providing linens, cleaning and maintenance, and send you a cheque for rental revenue, less expenses and a management fee, usually about 40 per cent.
You can do it yourself, but first you will need to make sure zoning bylaws allow short-term rentals in your area.
Then, arrange appropriate insurance and keep suitable accounting records. Also, arrange for someone to handle cleaning, emergency repairs, or any check-in difficulties that your guests may experience.
Some signs to look for that an area is primed for recreation property growth:
Significant investment, in terms of people buying properties, developers building properties, and governments investing in infrastructure.
Upgrades to transportation that allow improved access from a wider area, such as the establishment of Calgary-toComox flights.
Talk to local realtors for their take on the latest trends in their area.
Proximity to other hot spots (such as Kelowna, B.C., or Canmore) can cause a ripple effect where locations farther out (such as Penticton, B.C., or Crowsnest Pass) experience growth.
Many of the same tips that apply to home and property security in the city also apply to recreation properties in the country.
Install timers to turn lights and radios or TVs on and off periodically.
Ask a neighbour (or the property’s private security, if applicable) to check in on the site occasionally. Just as in the city, mowing the grass and shovelling the walk gives properties that lived-in look. The neighbour can also check for property damage or signs of mishaps such as waterline leaks.
Reinforce windows with metal grates, and install sturdy doors. The more work a thief faces to break into a property, the more likely they will give up and choose an easier target.
Turn off water and electricity before leaving a property for an extended period.
Don’t leave valuables in an unattended property. Also avoid leaving items such as liquor, hunting rifles and expensive equipment behind.
If possible, install an alarm system that is either monitored or programmed to notify you in the event of a break-in or other emergency.
Consider joining — or starting — a crime prevention program such as Rural Crime Watch.
Clearly label any possessions left on the property with nonremovable stickers.
Inform local police or RCMP when the property will be unattended, and periodically contact them to find out if there have been any security issues near your property. Some tips for avoiding sticker shock:
Be aware of closing costs, such as lawyer fees and home inspection fees.
An accountant can help you navigate the taxation implications, both in terms of what taxes you have to pay up front, whether any taxes like GST can be deferred, what taxes are applicable if you rent out a property, and if any rebates/writeoffs are available.
Location and amenities play a role in determining ongoing costs, such as condo/strata fees.
Contact local realtors, mortgage brokers, etc., to find out if an area has unique taxes or other fees that need to be factored into the purchase of the property.