Opportunity

Long-term and rental holds

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

A longer hold can be a cottage you use and rent, or a property you keep for income. The math only works if vacancy, repairs, and the next buyer are in the model.

Who this suits

Buyers who can carry the property through quiet months. Charlottetown and Summerside rentals follow a different calendar from a North Shore cottage. Do not use one set of assumptions for both.

Income versus carry

Separate operating costs from the mortgage. Cap rate uses net operating income and ignores debt. Cash-on-cash includes the mortgage and the cash you actually put in. Run both before you call a property an investment.

Vacancy for the real season
Management and repairs
An exit that is not “someone will want it”

Risks

A single tenant, a short tourism season, or a building that needs a roof can erase a year of surplus. Rental rules, insurance for tenants or guests, and property-specific demand all belong in the file.

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