Housekeeping Cottage Resort Property Assessments
Housekeeping cottage resort properties are valued using two different approaches, called the "direct comparison approach" and the "cost approach."
- The land for the housekeeping cottage resort is valued using the direct comparison approach.
- The structures in a housekeeping cottage resort are valued as follows:
- Primary residential structure (i.e. the property owner or operator’s residence) and secondary structures (such as a garage, boathouse) are valued using the direct comparison approach.
- Rental units and commercial structures (such as a restaurant, tuck shop) are valued using the cost approach.
Housekeeping cottage resort properties can be classified differently depending on how they are used, and this also determines how their value is assessed (see below). For example, if such a property is classified as multi-residential, it will be assessed as a multi-residential property.
If it is classified as more than one property class, the assessed value will be made up of the values of the portions attributable to each property class.
How housekeeping cottage resort properties are classified
A housekeeping cottage resort property may be classified as:
- A residential property; this happens when it is used only seasonally (it is considered a seasonal/recreational residential property).
- A multi-residential property; if it is used throughout the year.
- A dual- or multiple-use facility; this happens if it has a combination of commercial and residential uses.
- A housekeeping cottage resort that offers an American Plan operates like a hotel and provides two meals (normally breakfast and dinner) a day to their guests in a central dining area. The entire resort must be included in the commercial property class.
- A housekeeping cottage resort that does not offer American Plan meals to their guests is not classified as a commercial property.
- A housekeeping cottage resort facility may have structures/units that are leased with or without an American Plan. Those structures/units that are leased with an American Plan must be included in the commercial property class.