On today's show, Roland asks:
I listen to your podcast daily. Thank you for sharing your insights and bringing together a depth of knowledgeable people to share their real estate insights. George Ross is my favourite!
I am writing to you because I am in a predicament with a recent acquisition. Recently I purchased a number of small, run down lake side properties in a small Quebec community about 1h15min from downtown Ottawa, with the intention of renovating and renting them out as short term rentals. I was given what I consider to be a really good deal on seller financing. The properties had been sitting on the market for some time and I befriended the seller. Before moving forward with the purchases I’d done my research – because I own a cottage in the community i knew of its potential revenue and I did my due diligence with the municipality to ensure short term rental was allowed. But recently I was informed by city officials that they will not permit me to run a STR after all, citing their stance on STR has changed.
So with that background I was wondering what you would consider doing in this situation if you were in my shoes. The properties are located on a sizeable lake, the area has a a rich history of tourism specifically anglers from the United States… this is because prior to the pandemic the properties were used by a fishing and hunting business operator. Some of these customers have been coming back and I have a relationship with the retired operator Despite the city’s u turn I remain positive and bullish on the area and the future property value. There is no major attraction in the area other than its proximity to Lac st Marie (about 20 minutes south) but I know the area has members of some of Ottawa’s prominent families who own cottages in the area.
So I am forced to make the space available as a medium to long term rental. I am hesitant to go long term given the rental profile of the community. Then I had a thought I thought maybe you might have some perspective on given your experience in the Ottawa medium term real estate rental space.
What would you do if you found yourself in this situation?