What can you expect as cash flow when you purchase and rent out vacation real estate in Breckenridge, Colorado? Although resort properties in Summit County and similar locations tend to be higher priced than other real estate, they are useful long-term investments.
Investment real-estate owners in Breckenridge, Keystone, Frisco, Silverthorne, and Dillon may want to consider all of the following details when deciding whether or not to rent out their beautiful homes in our Rocky Mountain ski-resort. The overwhelming majority of vacation homeowners are the sole occupants of their properties, reserving them for family vacation homes—and that is true in Breckenridge as well. According to a survey by the National Association of Realtors, only about seventeen percent of second-home owners in the United States invest to obtain immediate income (cash flow). Few resort rental properties are purchased solely for the ability to generate rental revenue; the owners want at least periodic use.
Right off the bat, here is some basic information. Short-term rentals range from a day to two or three weeks. Long-term rentals last several months or more. A property’s ability to generate rental revenue varies greatly with its size, location, and amenities. In a ski resort, proximity to the slopes is more popular than more remote locations. Rare large properties that can accommodate family reunions, corporate meetings, and group gatherings will be in greater demand than more common 3-4 bedroom properties. Amenities such as a game room with a pool table, private hot tub, awesome views, and a gourmet kitchen add to the value of a rental property.
If an absentee owner decides to rent out a vacation home, especially if it is a separate single-family home, they most likely will opt to hire a management company to care for the property. A management company will check the thermostats and mechanical systems, remove snow and landscape, deal with repairs, and generally keep an eye out for open windows and any other things that could be out of order.
In addition, the management company will market your property and select renters for you, handle all of the monies, and present you with an income summary at the end of the year. Owners are still responsible to pay insurance, licenses, mortgage costs, and possibly utilities.
When you are pondering whether to invest in a vacation property in the resort areas, call Jonna Beardsley of Breckenridge Associates at (970) 453-2200 or (800) 774-7970 for friendly and professional real-estate assistance.
