Digital age has transformed holiday rentals, TV host says
Finding renters is easier, but standards higher
With the prices of Ontario recreational properties forecast by Royal Lepage to jump by as much as 17 per cent this year, the vacation rental market remains elusive for most. But if you’re one of the many property owners sitting on a neglected or seldom-used cottage, there’s no better time to get the most from your investment, says real estate and renovation expert Scott Mcgillivray.
“Twenty years ago, to rent a property you used to take out a classified ad in the newspaper. It was a lot of work, and if it didn’t get rented, that ad was in the recycling the next day,” said Mcgillivray, host of Scott’s Vacation House Rules, returning to HGTV this month for a second season.
“Now, with digital portals and online listings, demand for these properties is off the charts,” he added, even more so following a year of worry and lockdowns when the idea of doing what you absolutely love has taken on new meaning.
In season two, Mcgillivray makes the rounds of southern Ontario vacation spots, including Trent Lakes, Trent Hills, Minden, Kawartha Lakes, Blue Mountain and Collingwood, helping cottage owners turn problem properties into profitable rentals. Some properties were inherited or bought decades ago when prices were as low as $500. All are a bit rundown.
“I’m working with a couple right now who bought a property, enjoyed it with their family and now their kids have gone off to university and they don’t really go up anymore,” Mcgillivray said. “It’s not what it used to be.
“I said, why don’t you try renting it out for three weeks of the month and your retirement might show up a lot faster.”
On average, a two-bed, one-bath cottage rental in Trent Lakes — a region highlighted in episode one — rents for $300 a night, amounting to roughly $34,000 in income per season, Mcgillivray says. Using the formula that one week’s rent should cover a month’s worth of expenses, 12 weeks of renting becomes the breakeven point. Any rental income after that is profit, he said.
To get the most from a vacation rental and, ideally, book repeat customers, Mcgillivray follows a set of simple renovation rules that include doing your research, sticking to a design style or theme, and investing your own sweat equity. Most importantly, he encourages owners to show pride of ownership.
“Everything has to be Instagram-worthy now,” he said. “You’re competing with hotels, luxury resorts and the international market. These properties need to be top-notch.”
A dishwasher and relaxing place to take in the view are musts, and a bedroom shouldn’t feel like a box. Just when he thought he’d seen it all, season two proves Mcgillivray wrong when he comes across a 3,500-squarefoot bachelor pad that looks more like a Vegas hotel room.
“There were no bedrooms. There was a bed and a sink and open-concept bathroom, but no door, not even an enclosure — just open,” Mcgillivray said.
“It was a million-dollar property that was unrentable, because who wants to rent a place that has no bedrooms?”