Assessment Procedure for Housekeeping Cottage Resort Properties


To provide information about how the Municipal Property Assessment Corporation (MPAC) values and classifies housekeeping cottage resorts.


A housekeeping cottage resort is a facility that provides, overnight, weekly or longer accommodation in a self-contained freestanding cottage structure (unit). Typically, the facility operator enters the unit only at the end of the guest’s stay to clean and prepare the unit for the next guest.

Property Classification

Under section 7(1) of the Assessment Act, the Minister of Finance is authorized to prescribe classes of real property for assessment purposes and Ontario Regulation 282/98 provides details of each of the classes prescribed.

The classification of housekeeping cottage resorts is determined by the use and physical characteristics of the property.

No American Plan

A resort that offers no American Plan means that the facility operator does not offer meals to their guests.

As provided in section 3(1)1.i of Ontario Regulation 282/98, a property containing six self-contained units or less and used for residential purpose throughout the year, is classified in the residential property class. If a property contains more than six self-contained units and is used throughout the year, these units must be included in the multi-residential class as provided in section 4 of the Ontario Regulation 282/98. Housekeeping cottage units that are used throughout the year must be classified in accordance with the above legislation.

If the housekeeping cottage units are used on a seasonal basis, regardless of the number of units, they fall within the provision of section 3(1)1.ix of Ontario Regulation 282/98 and must be classified in the residential property class as “land used for residential purposes on a seasonal basis, including campgrounds”.

If a portion of the housekeeping resort facility is used for commercial purpose (i.e., retail store, restaurant, assembly hall), it must be included in the commercial property class as provided in section 5(1)1 of the Ontario Regulation 282/98.

Housekeeping cottage resort facilities that have a combination of commercial and residential uses are described as dual use or multiple-use facilities. The assessment of these facilities is apportioned to the appropriate property class based on the value attributable to the portion of the property used for each purpose.

American Plan

A housekeeping cottage that offers an American Plan is operated 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.

Modified American Plan

A resort facility may have structures/units that are leased with or without an American Plan. Those structures that are leased with an American Plan must be included in the commercial property class.

For structures that are leased without an American Plan, see "Property Classification - No American Plan".


Section 19(1) of the Assessment Act provides the authority for the valuation of all properties, including housekeeping cottage resorts, at their current value.

Housekeeping cottage resort properties are valued using both the Sales Comparison and the Cost Approaches.

The land for the housekeeping cottage resort is valued using the appropriate residential waterfront or rural land values in the vicinity derived from a Sales Comparison Approach.

Typically, the structures in a housekeeping cottage resort are valued as follows:

  1. Primary residential structure (e.g., the property owner or operator’s residence) and secondary structures (e.g., garage, boathouse) are valued using the Sales Comparison Approach.
  2. Rental units are valued using the Residential Cost Approach.
  3. Commercial portions/structures (e.g., assembly hall, retail store, restaurant) are valued using the Automated Cost System (ACS).

Related Information

Section 19(1) of the Assessment Act
Ontario Regulation 282/98
Residential Cost Approach Procedure
Sales Comparison Approach Procedure
Recreational Waterfront Property Assessment in Ontario

Note: This procedure has been developed to provide the public with a general understanding of the valuation and classification of housekeeping cottage resorts. The applicable law prevails to the extent if there is any conflict between the procedure and the relevant law.

Note: The applicable law prevails to the extent there is any conflict between this information and the current law. This information is not intended to provide legal advice and should not be relied upon as such.