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RichInTheUSA
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# Posted: 23 Feb 2016 10:26pm - Edited by: RichInTheUSA
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My wife and I originally thought we would rent our cabin out occasionally... but we really haven't done it very much. We just like being there and visit almost every weekend. So I got to thinking... how could I get some income, and still be there.
One way would be to not rent the cabin... but allow scouting groups or church groups to camp on the property. There's 30 acres with creeks, a small river (swimming hole, fishing), etc... Plenty of room for tents as well as woods for hammocks.
Clearly would need bathrooms and/or port-a-potties, well for water... campfire rings, firewood?
Anything I'm missing?? Any experience with this type of rental?
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MtnDon
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# Posted: 23 Feb 2016 11:17pm
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Liability for anything and everything.
Business permit/license.
State/local sales tax.
Federal, state income tax.
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hattie
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# Posted: 23 Feb 2016 11:53pm
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MtnDon is correct. Check for insurance. You will definitely need some kind of liability insurance. You will also need to pay taxes on the money you earn.
We have 3 small motel rooms attached to our cabin. We rent them out year round. Our motel insurance alone is $3,500 per year. The original quote was $6,000 but because the company had been dealing with Bob for 50 years without any incidents, they cut it down (after negotiating for a long time with us). Only one company would even insure us even though our motel was built in 2008 and is up to code with firewalls, etc.
We have to keep track of all the taxes we collect on the rooms and submit a form once a year (together with a cheque).
You will want to keep your water tested to make sure it is safe to drink.
You will need to address garbage - who will be responsible for removing it? If there are campfires, who will chop the wood? You should have a fairly sophisticated first aid kit that is available should any accidents occur.
I would not recommend renting out your land unless you are there to supervise. I really love our small business, however, I would never want to run it if we were off site. Even when we are here, people do unsafe things that we occasionally must intervene in. We also get items stolen from the rooms and there is damage done as well (not too often, thank goodness - but it does happen).
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Julie2Oregon
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# Posted: 24 Feb 2016 12:47am - Edited by: Julie2Oregon
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I don't know what the zoning is like where your cabin is but I'll toss this out there. What about renting land access to someone with a tiny house? There's a shortage of places for tiny house folks to live because their homes tend to fall between the cracks between houses and RVs. And some don't want to stay put in one place long, anyway.
You could interview and choose whom you wanted, you'd be there enough to check up on them, they wouldn't take up much space, and you could spell out exactly the do's and don'ts and what's included in a contract. Particularly when it comes to sanitation and water.
Tiny house people won't have a bunch of rowdy kids who could destroy your property and by living there, they'll have the desire to keep things neat. Many are singles or retired folks seeking a peaceful life. Some have paid a lot of money for their tiny homes so it's not like they're glorified hobos, lol.
Just a thought.
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RichInTheUSA
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# Posted: 24 Feb 2016 06:30am
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Thank you all!!! Great thoughts...
We already own the property in an LLC. Would need to get a biz license though. The deeded covenants do say that we can have a camp on the property - but not sure if that would hold weight with a modern county zoning bureaucracy.
Uh insurance... yep. I had trouble finding an insurance company that would insure my cabin/property even without a business on it. I wonder if there are insurance companies that cater to businesses specifically. All the auto/home/umbrella companies seem to shy away from business insurance. Beefing up my personal umbrella policy would probably be good too.
Hattie, what is the insurance company you use, if you don't mind me asking? Also, you said you rent them out year round.... do you mean an annual lease to the same folks? Or do you rent out year round for a week or weekend at a time?
Thanks for reminder on the taxes. I've have/had several small businesses in the past, so it's hard not to forget the tax return burden (I considered it a given).
Good points on water and garbage.
Julie.. I like the tiny house idea too. I had thought about building a tiny house and renting it on AirBnB... but had not thought about letting someone else put theirs on my property. They could be off grid, or I could have water/sewer/electric to them.
I do have a neighbor that has a cabin and 5 acres for sale.. would be great to rent out on AirBnB. However, I don't have the cash to buy it outright now... (I don't take out loans out of personal and religious convictions, and have limited resources like everyone else).
I was considering buying the neighbor's place with my IRA money, but apparently not only do you need a trustee... the entire operation must be hands off.
Thanks again for all your thoughts... Rich
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Littlecooner
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# Posted: 24 Feb 2016 09:18am - Edited by: Littlecooner
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Another item to check is with your state/local health department. If you advertise your place for rent, then depending on how you advertise the rates, you could fall into your state's definition of a "Motel" which could lead to periodic inspections of your rental facility by the local health department. Do your homework before you "Jump"!
Sounds like you have the perfect place to rent "Primitive Tent Camping sites only" by developing some opening along the river, construct a burn ring and possible a pick nick table at each site. I would look at just renting a "Porta potte" for these sites from you local company that provides that service. If thinks really took off, you could look at construction an Outhouse in the future, but again, better do a lot of home work on the net on health requirements. I hope you are so far off grid and in the correct spot that you do not have to deal with local governenment zoning and usage regulations. There are still places in out great country where we are still a free nation.
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Littlecooner
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# Posted: 24 Feb 2016 09:35am
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RichInTheUSA
Need a little extra money on the week end you are at the cabin. Well one of my very close friends started running a canoe and kayak "outfitter" service on his farm that adjoins a major river. He furnishes these "primitave camp sites" and his place does have potable running water via well water at one location. You would be surprised at the number of people who show up on the weekend to "float the river". Pitch your cabin at the camp-sight. Pay the fee, then they take you up river in that rental canoe and you can float, paddle at your heart's content, as there is no time frame on the craft rental. They float back to their tent, cook in the great outdoors and next morning, rave and rant about mother nature and say, we will be back, this was great fun. All you need to develop this one is your sweat equity to start a few camp sights and a few hundred dollars to purchase a couple of canoes and kayaks to see if it works. Facebook and flyers placed where the young generation can see them will bring them running on the nice weekends in the spring and fall.
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hattie
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# Posted: 24 Feb 2016 12:05pm - Edited by: hattie
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Quoting: RichInTheUSA Hattie, what is the insurance company you use, if you don't mind me asking? Also, you said you rent them out year round.... do you mean an annual lease to the same folks? Or do you rent out year round for a week or weekend at a time?
The insurance company we use is Wawanesa.
We rent by the night as it is a motel. We actually wouldn't be allowed to rent annually or even monthly. There are different regulations for that.
Even though we live in a very tiny town in British Columbia, the rules were very strict.
Leasing your land to people with tiny houses might be the ticket.
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