If you’ve been thinking about Buying a house in Collingwood or The Town of Blue Mountains as
a second property, or if you spend some of the year in another part of the world, you’ve likely
thought about renting out your space while you’re away to generate supplemental income.
Well, there are a few things you should know before budgeting your life with rental revenue in
mind.

First, in both Collingwood and The Town of Blue Mountains, there are by-laws in place that
prevent homeowners from renting their space our for less than 30 days at a time. Some
exceptions exist, and you can find more information about that here.

The good news is that the area has a demand for seasonal rental spaces (i.e. longer than 30
days) throughout the year, be it cyclists in the summer, skiers in the fall, and those testing the
area out or waiting for their new construction to be completed. Even better news, is our team
is equipped to help you find a suitable tenant and advise you throughout the process, making it
easy to subsidize your Southern Georgian Bay lifestyle while you are exploring other parts of
the world.

During our initial meeting at the subject property, we’ll take a tour and talk about the kinds of
things that are important to seasonal tenants some of which may include:

Unlimited wireless internet, entertainment (eg. Cable, streaming services, games, amenities), a
functioning coffee maker, bbq and toaster, sufficient kitchenware, mattress protectors, snow
removal, lawn maintenance, appearance and space for entertaining to name a few. Most
tenants provide their own linen and towels, and homeowners typically include duvets and
pillows.

Having a look at the property in person will allow us to compare the home with active and
leased listings to determine an appropriate asking price. Suggested list prices will vary
throughout the year and will also depend on the amount of similar inventory on the market at
the time of listing.

If listing to rent seasonally is something you decide to go forward with after knowing what’s
required and the kind of pricing your property may demand, we can discuss your ideal tenant.
Some questions to consider are: Are you okay with pets? Keep in mind a lot of nice active
families often travel with their fur babies so limiting your tenant pool to those without pets may
restrict your asking price or rentability. Is there a limit to the number of guests you’ll allow to
stay on a regular basis? Is there a minimum number of months you’d consider renting for?
Would you consider annual applicants should any enquiries come in?

In preparation for the listing, we’ll need four copies of the keys - one for the lockbox and to
hang onto in case of emergencies, two for the tenants and one for arranging cleaners or
contractors before, during or after the lease term. Most tenants expect homeowners to deep
clean the property prior to check in - we can arrange for a professional cleaner at your expense
prior to check in, or you can deep clean it yourself before vacating for the lease term. There
will also be some paperwork to sign, deposits to discuss, and photos to be taken ahead of
going live on MLS®.

In Ontario, annual rentals are governed by the Residential Tenancies Act: https://
www.ontario.ca/laws/statute/06r17. While seasonal rentals do not typically fall under the act,
there are times where it can come into play such as if the tenant makes the seasonal rental
their primary address during the lease term among other exceptions. While seasonal rentals
don’t typically pose problems related to this, it’s important to note that any time you rent your
property for any length of time, there may be incidents under which governing bodies may
favour the Tenants’ rights above the homeowners if the Tenant does not vacate on the
scheduled date. That being said, at the time of signing lease paperwork with seasonal tenants,
a deposit for utilities and security may be collected - which is not the case with annual rentals.
In determining an appropriate deposit amount, we take into consideration, the length of the
lease term, typical utility costs, and a buffer for any damages that may occur. This deposit will
remain in our Brokerage’s trust account until the end of the lease term, when all bills have been
collected, pro-rated and reconciled.

Upon finding a suitable tenant, we have all parties sign a lease agreement and typically, 50% of
the total lease amount is due upon signing, and the other 50% is due one month prior to check
in, along with the damage deposit. If the lease is signed within one month of check-in, the full
amount, plus the damage deposit is due within 24 hours of signing. Tenants will be required to
send proof of liability insurance prior to check in, and utilities remain in the homeowners’ name
throughout the lease term. The lease amount is paid out to the homeowner less commission
after the Tenants have taken possession of the property.

Prior to checking in, we advise both the homeowner and tenants to complete an inspection,
noting any damages, scuffs, holes in walls, furniture damage, or anything that is not fully
functioning and sending the findings along to their agent as a record for any disputes at check
out time.

Throughout the lease term, if the tenant experiences any major issues that may require the
attention of the homeowner, they will contact us and we will arrange for the appropriate
resolution with the homeowner’s approval.

After check out, we schedule a cleaner to come in at the expense of the tenant (from their
utility deposit), and encourage homeowners to complete a check out inspection for any
damages.

Once all bills have been collected for the lease term, the homeowner will send them to us for
prorating and reconciliation, and anything used towards utilities is returned to the homeowner,
any amount used for cleaning is returned to us, and any leftover amount from the deposit is
returned to the Tenants by way of a mutual release from the Trust fund. This is usually
completed within 60 days following the end of the lease term.

Seasonal rentals are most popular and demand the highest asking prices during the ski season
which is typically December to April. There are eight ski clubs in the region and many
members prefer to lease in the area during those months rather than purchase a second
property. The next most popular seasonal rental time is during the summer - July and August
when kids are out of school. The shoulder seasons in the spring and fall tend to be less
reliable for finding tenants and usually demand a lower asking price.

If you’ve been considering listing your property on a seasonal basis or if you have additional
questions about the process, contact our team and we’d love to see if we can help