Opportunity

Cottages and seasonal homes

By Jodi Bernard, PEI REALTOR®, CENTURY 21 Northumberland Realty. Updated October 12, 2026.

A PEI cottage can be a family base, a short summer rental, or both. It is rarely a year-round income property unless the building, the road, and the insurance say so.

Who this suits

Buyers who want a place they will actually use in summer, and investors who can live with a short booking season. If the plan needs twelve months of rent, a cottage is usually the wrong building.

Personal use with some rental
A patient hold
Not a substitute for a city rental

Income and expenses

Model gross rent only for the weeks the cottage can realistically be occupied. Then subtract vacancy, cleaning, management, insurance, tax, power, propane, and a repair reserve. Mortgage payments stay out of the cap rate.

PEI due diligence

Ask whether the road is maintained in winter, whether the water system is drained in the fall, and whether the septic was designed for seasonal use. A listing that says “cottage” does not tell you any of that.

Heat, insulation, and foundation
Well and septic
What the insurance policy actually covers

Questions to ask

Ask these before you treat a cottage as an investment, not only as a week in July.

Which months is the building actually usable?
Who maintains the road in winter, and is that written down?
What does insurance cost if guests stay?
What has to be shut down each fall, and what does that cost?

Run the cap rate Estimate a mortgage See current cottage searches

This is educational, not legal, tax, or lending advice. Ask Jodi Bernard about a specific property.