How much can you Make from your Cottage in a Regular Year? ($$$)
Okay let’s pretend for a second that Covid does not exist, just how profitable will it be by renting out your cottage? There is no definite answer to this, but the likely scenario is that not only will you be able to cover your usual expenses, you’ll also have a nice chunk of mula left as an extra income.
I originally didn’t want to bring a lot of math into this article but it seems necessary so you can have a better idea of what I’m talking about. Let’s start with something much smaller so we can see where the bottom of your range may be at.
CONSIDER THIS:
3 Bedroom, 1 Bathroom cabin with approximate 900 sqft. No lake views and no water access.
Pretty basic cottage layout and location right? Nothing fancy but it can still make quite a bit of cash flow.
Average Nightly Price: $250
Range of Nightly Price: $180-$350
Average Minimum nights: 3-5 nights
Summer Occupancy: 95-100%
April, September, October, November Occupancy: 40-60%
You might find that I didn’t put down data for December to March, you’re still welcome to open those dates up but the occupancy will likely not be more than 25%.
So what does this all translate to? Approximately 32k a year in revenue, and that’s for a 3 bedroom, 1 bathroom, 900 sqft cottage with no access to lakes or bodies of water! Now with more reviews and as you build your reputation, and added décor, you could potentially charge more and earn up to 50k.
If this is what you’re expecting on the smaller side of cottages, imagine what a lakeside 4 bedroom cottage could earn, that’s right you can earn upwards to 100k in revenue. However, on average, a medium sized cottage in the Peninsula can expect approximately 50-60k in revenue for a regular year. This isn’t including the real estate growth value of your cottage, so keep in mind of that as well.
I hope this article gave a clearer view in terms of cash flow for cottage rentals and if you have any questions or interests, do not hesitate to send me an email or give me a call, and I will gladly discuss or give out advice completely free.
