Since we have covered how to turn a Colorado vacation home into a rental property and how to price your Colorado rental property, I thought I would round it out with how to manage your Colorado rental property.
Are you a control freak by nature?
If so, you may want to try and detach yourself from your rental property. Unless you can devote the time and energy to managing the property properly.
Managing a property is not as easy as most people think.
You have to screen potential renters thoroughly, sign contracts with renters, supervise and contract with a cleaning company, pay rental taxes, collect the rent and security deposits, handle complaints, maintenance and repairs.
Think you are up for it?
If after reading this, you catch yourself second guessing your new career as a property manager, you may want to talk to your local buyers agent about reputable property management companies in your rental area. Colorado buyers agents have excellent local connections with many different resources. Such as property management companies, financial institutions, insurance companies, and home inspectors.
Is your Colorado vacation home large enough to rent out for weddings and retreats?
If your home is large enough to rent out to small weddings or family retreats, insurance coverage is something you definitely want to look into. You need to make sure your insurance will cover anything that may happen. But you also should make sure you know the maximum number of people your rental home can hold. This means check the limitations on the restrooms, kitchen, and water use. The last thing you want is a bad reputation for renting to a party who had problems.
What income can a larger rental home bring in?
Amazingly, someone in Beaver Creek owns a very big rental house that can sleep up to 22 people! They require a 25% deposit, 12.4% for taxes, and the rates start at $1400/night.
Similarly, a rental house in Breckenridge that can sleep up to 24 people. It seems as though the owners themselves must use it during the winter because their posted rates don’t include any winter dates. They are more than likely taking advantage of using their Colorado vacation home as a way to bring in rental income as well. At $1850/night in the summer, this owner knows exactly how to make their vacation home work for them.
