Last week I talked about How To Use Your Colorado Vacation Home As Rental Property. I covered some basics about competition, management, and advertising.
This week I want to talk about money!
I knew that would get your attention. Contrary to popular belief, your vacation home may not be the million dollar a night rental you see it as. A good way to gauge a competitive rental rate for your property is to compare it to similar properties in the area.
Is the sun shining or is the snow flying?
Depending on where your Colorado rental property is located. The high season and low season rates may fall at different times. The typical high season for mountain rental properties in Colorado runs from around mid-December until the first week in April. Keep in mind that weekly rates may differ from weekend rates also.
Would you like a few examples?
A ski-in ski-out, 2 bedroom, 2 bath condo in Breckenridge can run from $725 a night on the high season all the way down to $275 a night during low season. Consider that Breckenridge is pretty much a year-round town.
In Glenwood Springs, a 2 bedroom, 2 bath condo is only rented out by the week. There are 2 rates listed $950/week for January 1st through April 1st. The higher rate in Glendwood is during the summer months when people can take advantage of the natural hot springs more easily. For $1050/week you can reserve a condo with gorgeous mountain views.
What is your Colorado rental property worth?
If you haven’t bought your Colorado vacation home yet, you may want to check in with your local buyers agent to see what the rental market is like. When high and low seasons run in the area, and if they have local property management companies they recommend.
In conclusion, you may discover that your dream Colorado vacation home would be a more profitable rental property if you purchase property close to a ski area or great summer mountain town.