Some basics for vacation rental ownership

Many buyers come to us with questions about vacation rentals in Steamboat Springs. If you are considering buying a property in our beautiful Colorado resort town, offsetting some of the cost by renting it out to tourists could be an option for you.

Here are some basics you should know about investing in a vacation rental property in Steamboat:

  • Your needs come first. Decide on your basic personal use necessities first: number of bedrooms and bathrooms, configuration, fireplace, amenities, outdoor space, garage or parking spaces, services and location. Your desired amenities might include: 24-hour front desk, pool, hot tub, sauna, tennis court, seasonal shuttle service, concierge service, etc.
  • Management and rental company. To make renting out your property to vacationers as simple as possible, choose a complex that offers professional management and established nightly rentals. The larger, more experienced condominium/homeowners’ associations (HOA) in Steamboat are: Wyndham (also includes Steamboat Resorts), Mountain Resorts and Retreatia. Smaller, reputable companies at smaller complexes and outlying properties include Moving Mountains, Simply Steamboat, Pioneer Ridge, Condos In Steamboat and others.
  • How the rental agreement works. With a management company, their staff handles the logistics of finding and booking renters. In turn, they charge you 45 percent of the gross rentals while you keep the remainder. While that amount might seem high, keep in mind that the fee includes all advertising and marketing, daily maid services, shuttle service, check-in and check-out, full cleaning after each stay, inventory checks, linens, towels, paper goods, cleaning supplies and ongoing general management.
  • Attracting renters. If rental cash flow is high on your priority list, you might prefer a complex that offers all the popular resort-type amenities including close proximity to the slopes, hot tub, shuttle service, maid services and a majority of the units within the complex are nightly rentals. However, keep in mind that some homes and townhomes that don’t have a lot of amenities can also attract higher rental rates.
  • Seasonal expectations. Ski season in Steamboat is Thanksgiving through early April. Aim for 75 to 100 nights of rental per ski season, and another 30 to 50 in summer, and your cost of ownership will be somewhat offset. If you use your property during the key rental weeks, your income will decrease. The best weeks for rental are Christmas week, New Year’s week, and President’s Day weekend through the end of March. Note that ski season nightly rental rates are much higher than summer season.

 

In next week’s blog, we will dive into some of the financial details and considerations associated with condominium and vacation home purchases.

 

To learn more about real estate options available in Steamboat Springs, contact us using the form below: