Real Estate Talk:
Renting a second residence

The advantages, the disadvantages and is there a market of renters?

By Joseph Marovitch

Updated April 15, 2026

It is that time of year when many ask me to find a country house summer rental. The problem is that most people arrange a summer rental months in advance, since demand tends to be high. This year, demand is even higher than usual, as travel abroad is less popular due to global issues and inflation.

However, there is always demand for summer rentals, and if an owner, for any reason, is not using their property or has purchased it for revenue, why not take the opportunity?

Before renting a country home, an issue must be verified first. Some municipalities do not permit short-term rentals; therefore, you must check with your municipality to see whether there is a bylaw restricting rentals. If there is no restriction, you must then apply and obtain a permit to operate a rental vacation property from both the local municipality and Tourism Quebec.

There is always demand for summer rentals, and if an owner, for any reason, is not using their property or has purchased it for revenue, why not take the opportunity?

Note that when you rent a home as a vacation property, a lease of twelve months or more falls under the jurisdiction of the Tribunal administratif du logement (TAL). Instead, sign an agreement for eleven months or less. Country home rentals usually have periods of a weekend, a week, two or three weeks or a maximum period of six months. If renters want to extend their stay, add a clause to the agreement that allows them to renew after 6 months.

There are several advantages and disadvantages to renting a country home.

Advantages:

• Rental income pays utilities, taxes and upgrades
• You can enjoy the property for part of the year
• All expenses related to renting are tax-deductible
• The property value continues to grow expense-free

Disadvantages:

• Rental property is seasonal
• Risk of property damage
• Payment must be collected before occupancy
• You must collect and pay taxes
• Insurance can be expensive

Solutions to the disadvantages

Seasonal Rental
Since demand for a vacation property is seasonal, the lessor can adjust the rent accordingly. Summer, Christmas/New Year’s, March break and other holidays are considered high season; therefore, the rent should be higher. The rest of the season is considered the low season because demand is lower; therefore, you reduce the rent to maintain cash flow.

‘Since the demand for a vacation property is seasonal, the lessor can adjust the rent according to the season.’

Risk of Property Damage
Insist on a refundable damage deposit large enough to cover unforeseen costs due to damage by the lessee. It should be stated clearly in the signed agreement that, should the lessee damage the premises or content, the damage will be deducted from the damage deposit. As well, charge an additional amount to cover the cost of cleaning the property after the lessee departs the premises.

Payment
It is advisable to collect a deposit upon the reservation and the balance of payment one or two weeks before arrival. This way, the lessor does not have to chase the lessee for the rent.

Collection and payment of taxes
All funds should be received before possession. The collected taxes should be put aside in a savings account until they are payable in the quarterly tax report/invoice.

Insurance
Ensure that the amount charged for the rental includes insurance costs and is therefore included in the rent.

There are several inexpensive websites to advertise the property on, including:

• monsieurchalets.com
• forrentbyowner.com
• vrbo.com
• quebeclocationdechalets.com

These sites charge varying amounts for advertising, but they do not require a percentage of your income, unlike Airbnb.com and others.

‘When receiving an inquiry, vet the interested party as thoroughly as possible before agreeing to rent the property.’

Vacation homes are rented furnished. You can offer additional services such as firewood delivery, internet, TV and phone, and charge accordingly.

When receiving an inquiry, vet the interested party as thoroughly as possible before agreeing to rent the property. Families with children and responsible adults are usually not a problem. If the inquiry is from a group of student graduates or a group of men off for the weekend, be wary. You want the property to remain in good condition. If there is damage to the property that is beyond the security deposit amount, you do not want to chase the lessee for the money.

The information in these articles is a summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

State of the market

Unlike second homes, which tend to be purchased by those in the upper income bracket, as they are luxury purchases, primary residences are not a luxury purchase, and values move according to a much wider demographic supply and demand model. The Canadian Real Estate Association (CREA) recently downgraded its market forecast due to weaker demand in March. The reasons are global issues, rising gas prices, overall inflation, and the recent increase in mortgage rates.

The revised CREA forecast for 2026 calls for reduced demand and hesitant buyers, already facing higher carrying costs, as they weigh whether to buy or rent. Should the U.S.-Iran war be resolved through a peaceful agreement soon, it will cause the stock market to spike and release pent-up demand, quickly increasing property values. However, it will take time for the market to return to normal once peace is established, and in the meantime, the spring market should be very good for sellers. If the conflict continues through 2027, we will all have to find strategies to manage through the economic hardships.

‘Should the U.S.-Iran war be resolved through a peaceful agreement soon, it will cause the stock market to spike and release pent-up demand, quickly increasing property values.’

Regarding buyers, we are in a buyer’s market for a little while longer. Since everyone must live somewhere, the market, whether slow or not, will always be in motion. If buyers keep an eye on world events and see signs of approaching peace, buying before peace arrives is a good opportunity to purchase in a buyer’s market and watch the property value rise quickly when a peace settlement is signed.

Have a wonderful weekend

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