Cottage rental income

Estimate what renting your cottage for a few weeks a year could earn after cleaning, platform fees, licensing and tax, and how much of the cost it covers.

Your numbers

You charge by the
$
Example. Look at similar cottages on your lake.
8 weeks
$
Mortgage, tax, insurance, hydro and upkeep. Example.
Rental income after costs and tax$13,846 / year

Renting 8 weeks covers about 27% of what the cottage costs you each year. You would still carry about $38,154.

Rent collected$24,000
Cleaning$2,000
Platform fees$720
Management$0
Licence and extra insurance$1,500
Income tax$5,934
Left for you$13,846
Costs and tax
$
Example.
%
Example.
%
0 if you manage it yourself.
$
Check the municipality’s rules and current fee.
$
Example. Ask your insurer.
%
Your top rate. Your accountant can tell you.

Cash-flow illustration, not mortgage-qualifying income or a tax return. Assumes legal compliant rentals. Income tax here applies a single rate to the modelled rental surplus; it omits deductions for shared carrying costs, depreciation and losses. HST, accommodation tax and their remittance are not modelled. The $30,000 registration test also considers other taxable supplies and timing. Confirm with an accountant.

Ask about a rental cottage

How this works

Enter what you would charge and how many weeks you would rent. The calculator takes off cleaning, platform and management fees, a township licence, extra insurance and income tax.

It compares what is left with what the cottage costs you each year, so you see how much renting really covers.

A worked example

Renting for 8 weeks at $3,000 a week brings in $24,000. After cleaning, platform fees, a licence, extra insurance and tax at 30%, about $13,846 is left, which covers roughly 27% of a $52,000 yearly cost.

What the numbers assume

  • Nightly rates are counted at seven nights a week.
  • Tax is your rate times the rental profit. Your real tax depends on deductible expenses and personal use. Ask an accountant.
  • The $30,000 small-supplier threshold generally considers taxable supplies across your business activities in a calendar quarter or four consecutive quarters, not just this cottage.
  • Licensing, zoning and municipal accommodation tax differ by municipality. Confirm the rules for the property.
  • Insured second-home programs leave out rental pools and rental properties.

Common questions

How much can I make renting my cottage?
It depends on the lake, the weeks and your costs. A few summer weeks often cover a good part of the yearly costs, rarely all of them.
Do I need a licence to rent my cottage in Ontario?
Check the current municipality’s zoning and licensing requirements before advertising. A licence elsewhere on the lake does not establish eligibility for this property. Short-term rental rules has the list.
Do I charge HST on cottage rentals?
Stays under a month are taxable. Once your taxable sales pass $30,000 in a quarter or over four straight quarters, you generally need to register and charge 13% HST.
Does renting my cottage change my mortgage?
It can. Insured second-home programs do not allow rental pools, so a cottage you plan to rent often needs 20% down. Tell us your plans before you buy.

Talk to Jeff and Emily

Bring a listing, a lake or a few questions.

Or call or text 416-628-9682

Book a call