Rental management agencies
A guide to selecting the right one for you


Although managing your own cottage rental can be rewarding and, in some ways, economical, it is very time consuming and demands a high degree of attention for it to be successful. This is where rental management companies can offer a great alternative, or become an additional tool in your marketing plan.
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Professionally operated agencies, although not regulated by any official body, will carry out their business to a high standard. After all, you are giving them the responsibility of finding suitable renters who will take good care of your property, so it is well worth your time researching the different companies and asking them some searching questions.

Is the agency registered with TICO (Travel Industry Council of Ontario)?

The Ontario Travel Act requires all sellers of travel products to be registered with TICO. This is to protect the consumer from the risk of a travel company going out of business and taking their money with them. This registration is also an indication of the credit worthiness of the agency as there is a financial responsibility to hold $10000 in a trust account, and to have substantial working capital. Companies holding a TICO registration have met stringent criteria to enable them to operate as a travel agency in Ontario.

Is there a contract between the cottage owner and the agency?

A rental management contract will formalise the arrangement between the agency and owner and is an important document laying out the terms of the relationship. It should clearly define the responsibilities of each party so that neither owner nor agency is in any doubt as to their commitments. Agencies may offer both exclusive and non-exclusive contracts so that owners are free to market their cottage themselves, or use additional agencies. If a non-exclusive contract is entered into, there may be an increase in commission rate. A contract protects both parties and it would be unwise to permit an agency to begin renting your cottage until an agreement has been signed.

How are potential renters screened?

Screening is an important part of the rental process. Simply stating on a web site that groups of party people are not accepted is not good enough. A good agency will have a track record of matching rental groups to the right cottage, pleasing both owners and renters. They will use an application process and ask for information that is then used to screen potential applicants. They will not permit anyone to book online without talking to the lead party member to asses their suitability for the cottage listed on the application.

What is included in the rental agreement?

A cottage rental agreement is a contract between the owner and the renter and sets out the terms of the rental period. It should state the date and time of the start and end of the rental and define what is included with the rental. There can be clauses relating to issues of particular importance to the owner, such as pets, smoking and the renters responsibilities for cleaning the cottage on termination of the rental. A professional agency will be prepared to amend their generic rental agreement to include any individual requirements an owner may have.

What Terms and Conditions of Rental are renters bound by?

While the Rental Agreement will set out terms directly related to the cottage, the agency should supply the renter with a clearly laid out document stating the general terms and conditions of rental. These should cover any eventuality such as appropriate use of watercraft, liability disclaimers, and general safety issues and will require a signature from the renter to agree to the terms. Ask to see a copy before you enter into an agreement with the agency.

How is damage dealt with?

Most agencies will ask renters for a security/damage deposit – normally $500 - to cover minor damages and repairs that are beyond normal wear and tear. The Terms & Conditions of Rental should refer to a damage deposit and have a clause stating the renter is responsible for any charges for damage beyond this amount. Most agencies require the lead party member to supply information on their home insurance provider together with a policy number, because most of these policies cover third party damage outside the home. In the unlikely event of damage being caused over and above the $500 deposit, the owner’s insurance company may look at recovering costs from the renter.

How does the company market your property

It is not sufficient for an agency to simply put your cottage on their website – this is not effective marketing. Use an agency that has a clear strategy for wider marketing and promotion, through different kinds of media. Ask how they would promote your cottage, particularly in the shoulder seasons. Do they send newsletters to their renter database? Do they update a cottage listing to showcase particular activities in the area? How creative can they be in ensuring your cottage gets maximum exposure.

Is this a full time business for the agency owner?

Running a cottage rental agency is a full time business and requires professional staff to respond quickly to renter queries and to react to any problems that may arise. Look for a company that has regular office hours, and has people to answer phones during the day. If you email or leave a voice mail message, time how long they take to get back to you. This is the same service a potential renter may receive, so a little ‘mystery shopping’ is always worthwhile doing.

And finally…….

The most important thing is that you feel comfortable with your agency. Having an agency manage your cottage is more than just handing them the keys and collecting the money. It should be a working partnership with your cottage treated as an individual marketing opportunity, not just another listing on a website. Choosing the agency with the lowest commission rate my be a false economy if they don’t live up to their promises and you don’t get the rental income you expect. Do your research and you should find you have made a wise choice.

For the most comprehensive guide to renting your cottage: