What to do before renting your chalet?
Renting out your chalet has many advantages, the most obvious being that it is an excellent way to offset the cost of the investment. With declining access to property, it is also a way to keep your home while waiting for the desired increase in value. Whether you are looking for an additional source of passive income, an investment for your retirement or a solution that will give you the means to keep the cottage to which you attach sentimental value, several aspects must be considered. The legal conditions, security measures and operating procedures must be part of your rental process. We are here to explain them to you and help you put your chalet up for rent in no time!
1. Register your establishment and obtain a classification certificate from the CITQ
In Quebec, each municipality has its requirements in terms of accommodation for tourism purposes. You will therefore need to ensure that you receive a municipal certificate of compliance, which will allow you to obtain a classification certificate from the Corporation de l’industrie touristique du Québec (CITQ). This step is mandatory for all rentals lasting less than 31 days. The CITQ will award your vacation home between zero and five stars according to the analysis of criteria relating in particular to the surface area, cleanliness, exterior of the building, the condition of the fixtures and fittings and the location. sustainable tourism measures. The classification certificate issued by the CITQ will be valid for two years. You will then need to submit a new request.
2. Register for taxes with Revenu Québec
The offer of short-term accommodation is subject to the conditions of Revenu Québec. Your obligations require that you declare your income and that you register for lodging tax, as well as GST and QST.
The tax declaration obligation requires you to declare all of your rental income. You will be able to deduct any “allowable and reasonable” expenses attributed to the area rented and the rental period. Pay special attention to this reporting, as rental income does not receive the same tax treatment as business income (although business reporting may apply in some cases).
Registration for the accommodation tax file is necessary if the rental of your chalet meets three conditions: you regularly offer the rental of a unit for tourist accommodation for a period of 31 days or less in exchange of remuneration; you advertise, on the Internet, by posters or otherwise, the rental of your chalet; your cottage is located in a tourist region of the province where the tax on lodging is applicable. If you meet these conditions, you are required to collect the tax and remit it to Revenu Québec. In the event that you deal with a rental agency whose administrators receive all the income, you do not have to personally register for the accommodation tax file.
Registration for the GST and QST files is mandatory if your cottage rentals exceed $30,000 “during a given calendar quarter or for all four calendar quarters preceding it”. The GST and the QST must then apply to the accommodation itself, but also to the tax on the accommodation and on the goods and services purchased, if applicable. If the rental of your cottage earns you less than $30,000 during the periods mentioned, you are considered by Revenu Québec to be a small supplier, which exempts you from registering for these files and from collecting GST and QST.
3. Insure your chalet
If you wish to rent it out, it is essential that your chalet is insured. If you have already done business with an insurer for your home, you have a duty to notify them of your intentions to accommodate tourists there, because not all insurance companies cover this type of occupation.
Before choosing insurance, pay close attention to the terms of coverage. Indeed, you may not be protected against certain incidents, such as theft by tenants. In addition, note that civil liability insurance of $2,000,000 is required to obtain the CITQ classification certificate if the cottage you are renting out is not your secondary residence, but your main.
4. Set up your chalet
Before welcoming visitors, you must set up your rental chalet. Protect your valuables, as well as the objects that you do not want to make accessible to visitors in a safe and locked place. Be sure to give them access to kitchen necessities, quality bedding, etc. Before the arrival of tenants, make sure that your chalet is immaculate and thoroughly cleaned, as well as all the objects made available to them (10).
Work with a recognized rental agency or rent your chalet yourself?
If you work with a recognized rental agency, you will above all benefit from excellent visibility which could greatly simplify the rental of your chalet and attract many visitors. You can also benefit from the support of experts and the reputation of the agency. Although more expensive, this option could ultimately generate much higher income for you.
If you choose to rent your chalet yourself, you will save big on the display of your advertisements. On the other hand, you can obtain excellent results by using well-known platforms, many of which are offered free of charge, and social networks. With attractive texts and an exhaustive list of services offered and accessible goods, you will be able to attract several potential tenants.
What rental price to rent your chalet easily?
Before setting a rental price for your cottage, you will need to do some market research and price based on the rental market. To set a suitable price that is comparable to similar cottages, check out the average cottage rental prices for your area of the province. Note that prices vary depending on the period: they are significantly higher during high season (including holidays, spring break, etc.) and vice versa. For example, the average price of a rental chalet in Charlevoix in 2021 for two nights was $1,600 during the low season and $2,150 during the high season.
Expert cabin rental advice to avoid problems
Sign a rental contract
Signing a rental contract will protect you and reassure your tenant. Enter all the information relating to costs, payment and length of stay, the number of people, any conditions relating to the premises or equipment, as well as the landlord’s contact information.
Require a security deposit
The request for a security deposit (listed in the contract) will reassure you about potential breakages by the tenants. The latter will in turn pay attention to your property and your belongings, making sure to recover the amount. Be sure to communicate clearly with your tenants about the security deposit. They must know the reason for this, as well as the incidents that would lead to the loss of this deposit.
Register on location sites
A registration on the location sites will allow you to increase your visibility and make your chalet known more easily. Indeed, this display will increase your chances of seeing your chalet appear among the first search results.
Ask for proof of identity
It is important to confirm the identity of the person who will be renting your chalet by requiring proof. You will thus protect yourself from any fraudulent transaction, thereby protecting your property.
The best strategy to rent your chalet quickly
To rent your chalet quickly, make sure it is attractive, uncluttered and meets the needs of potential tenants. Offer them a clean space, in good condition and up to date. Of course, you will need to promote it effectively. To do this, find out about the digital platforms that are popular in your region and choose them for your display. Write a comprehensive description that will pique readers’ interest and answer any questions they may have in advance. Accompany this description with photos that highlight each of your spaces. In a section reserved for the services offered and accessible equipment (eg stove, washer and dryer, microwave oven, pool table), present all of these elements.