8 tips to rent your ski condo and make a profit

Copper Mountain, Colorado has some very nice ski condos at the base of the mountain.

I have a friend who owns a one bedroom condo in Tucker Mountain Lodge and last year he grossed almost $20,000. I own one at Taylor’s Crossing, also in the Center Village at Copper, and have had just about the same rental income in my condo. The expenses, not including mortgage payments and HOA dues, are around 20%, so we end up making enough to come very close to having the condo pay for itself. How do we do it?

• First, we advertise it ourselves by using websites like vrbo.com and homeaway.com to list the property for rent. We have descriptive copy and plenty of photographs. We answer the email requests promptly and follow up consistently.
• Weekly rates pay off, as you are more likely to get destination skiers who will stay longer. I have a 3 night minimum, which I instituted after a season of weekends being booked but few weekdays rented. Keep in mind that you have to pay for cleaning after every stay and 3 stays in a week costs almost $200 to clean, while one stay in a week only costs $65.
• The management company makes a huge difference. A flat rate company that charges about $125 (for a one bedroom) a month instead of a percentage of the rentals, will save you money in the long run. In my case, my management company, www.bookbyowner.com, hands out keys, arranges for the cleaning and inspects to make sure everything is ok before the next guest comes in.
• We offer amenities that the other property management companies may not be able to do. A hands-off owner generally will not add the little touches that make the property more personal and comfortable for the guests. As a result the major management companies often have rather tired looking condos for rent. They all look alike and have the same furniture with no special items to make the guests feel more at home.
• When you rent your property yourself and are confident that the management company will take good care of it, you are more willing to remodel it, add new furniture or a flat panel tv, and that alone will bring in more rental income. As a result, your guests will come back more frequently.
• Give a discount for repeat guests and referrals. I have rented to a couple from Kansas that came twice last year and three times this year. I will also discount last minute bookings as I would rather rent at a lower price than not rent at all.
• Request payment in advance in the form of a check. I take a deposit at the time of the reservation and ask for the balance 30 days prior to the stay. That way the check has time to clear before the guest arrives. I can take a credit card if necessary using Paypal, but it is expensive and I prefer not to. I have only lost one guest because I couldn’t take a credit card.
• Network with other owners who rent their condos the same way. If I am booked at the time of the requested reservation, I have a list of about 5 other homeowners that I forward the email to. They will in turn, do the same for me.

When my clients buy a second home in Summit County, I try to encourage them not to plan on it paying for itself, but to buy a condo that they will use and enjoy.

However, sometimes they don’t get to use it as often as they would like and end up renting it to help pay the bills. Traditionally vacation homes are good investments and sometimes people buy them with that intent, but it is difficult to pay 50% or more of the income to the management company without having a big cash drain. Waiting for appreciation can be slow if the real estate market is not as good as expected, and the more money you can make on it the less you have to put into it. Renting can be a good option, and it doesn’t have to mean that your vacation home will get beat up, which I often see happen. Please feel free to call or email me with any questions.

If you enjoyed this blog post, you might also like to read:

Consider renting your high end vacation home

Nine questions to ask when choosing a property manager

Six easy money making ideas for renting your condo

The good, the bad and the ugly

Your vacation home can pay for itself

How to get your rental property to cash flow

Posted by Summit County Real Estate Agent Joanne Hanson at 9:47 pm in Summit County Real Estate, Summit County Homeowner Resources, Summit County Colorado Vacation homes. Subscribe to comments RSS feed.

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