Marketing your rental cottage as a dream destination
By Michelle Warren • Bankrate.com

While some people opt to save money and manage the bookings themselves, others prefer working with an agent, most of whom offer a combination of listing and booking services for commissions that range between 18 and 25 percent of the rental fee.

Kevin Knox, owner of Waters Edge Ontario Cottage Vacation Rental, does things a little differently, charging a flat $250 fee instead of a commission. As part of the company's service, he visits your cottage, takes photos, helps determine a rental fee and does all the marketing using his website, as well as host websites, various print media, Cottage Life magazine and The Cottage Life Show. In addition, the company is the primary contact for would-be renters, says Knox, adding owners often to turn to him because they're overwhelmed. "They get inundated with a lot of questions ... you could spend an hour or more with a person and they might end up renting another cottage."

When signing on with a booking/listing agent, seek references and make sure you're working with a reputable company capable of handling your money. Ask about industry affiliations and insurance. Knox, for example, is a member of the Travel Industry Council of Ontario.

Cash or charge?
One of the advantages of working through an agent is customer service. "When people do it on their own, they're usually not set up for credit card payments," says Knox. Instead, owners must request cheques and wait for monies to clear before they can confirm a booking. It's standard to ask for at least 50 percent of the rent up front and the remainder upon arrival.

Another option for owners, especially those renting to people from outside Canada, is to set up a PayPal account so renters can transfer funds online.

Securing a damage deposit is also a good idea. A booking agent can take down a credit-card number, but if you don't have the capacity to do this, you should ask for a cheque (the problem is a cheque that may or may not clear should circumstances arise where you have to cash it, especially if there are hard feelings or a discrepancy regarding damage). Pham-Dinh admits it's a hassle and he doesn't bother with damage deposits unless he's booking a group of young people on a party weekend.

Incidentals
"There's a lot of different nuances to it, it takes a few years to figure it out," says Knox of the details that go into marketing a property, fielding inquiries and managing the booking process.

"At first it's a lot of work, but once you get organized it gets easier," agrees Pham-Dinh, who saves time by using templates from which he cuts and pastes to answer email queries or send would-be renters information packages that are tailored to their specific needs.

It's important to be clear to renters about their responsibilities and ensure they comply with your wishes regarding pets, smoking, fires and other property-specific issues. "We provide an hour and a half orientation upon arrival," says Paula Lambert of Paramount Vacation Property Management in Dwight, Ont.

Cottage owners must also consider liability. The first step is having proper insurance in place, says Lambert. In addition, owners can take their cue from booking agents, most of whom require renters to sign waivers as part of the reservation process.

While some owners rent their properties year-round, it really depends on location. Most can count on eight to 10 weeks in the summer and weekends during the off-season. Winter rentals depend on accessibility and nearby attractions for outdoor enthusiasts.

Marketing is key to making the most of your cottage rental. It's important to remember that while the web prevails for promoting cottages, one of the strongest marketing tools is still good old-fashioned word-of-mouth. It's up to you to keep your cottage in good repair and ensure the turnover between renters goes smoothly so that people have the best possible experience, spread the word and keep coming back.

This is the third in a series of articles outlining what new owners need to know about preparing, maintaining and marketing their investment property. Read Part 1: Buying a cottage with an eye on turning a profit and Part 2: Dust off your tool box, buy a hot tub -- it's cottage season.

Michelle Warren is a freelance writer in Toronto.