Buying Tips: Rentals

When making your Breckenridge real estate purchase, one decision you may consider is whether or not to place your new home or condo in a vacation rental program. Homeowners find many benefits to using a local Breckenridge vacation rental company to manage the reservations at their homes. While revenue is one important expectation of homeowners, finding a company that will care for your home as you would can be equally as important to new owners.

At first glance, new homeowners in Breckenridge may think that there is only one primary season for vacation rentals here, the winter ski season months. However, summer tourism has shown a steady increase over the years as vacationers come to the mountains for hiking, biking, golfing and whitewater river adventures. We now experience two strong tourist seasons: November to April when the Breckenridge Ski Resort is operating and June to September when visitors enjoy the cool mountain temperatures. Depending on the location and size of your Breckenridge vacation rental property, owners may realize 100 to 125 nights reserved per year by guests.

In addition to the revenue received from vacation rentals, there are some added benefits to having your home or condo in a managed rental program. The vacation rental company will perform frequent visits to your home to ensure the proper working order of the heat in winter, thereby reducing the likelihood of frozen and burst pipes which can cause flooding. Regular guests to your home means that appliances are used more often. Dishwashers, for example, should be run on a regular basis to prevent the seals from drying and cracking. And at each guest’s departure, your home will be professionally cleaned and inspected. If a problem is detected, it is often noticed much earlier and before it becomes more costly to repair.
When interviewing Breckenridge vacation rental companies, it is important to ask all the necessary questions up front to determine who best can meet your needs. Some considerations include the rental company’s projections for what your property may generate as gross rental revenue in the first year and in subsequent years. The longer a home stays in a vacation rental program, the more likely it is to receive repeat guests from year to year. Find out what the company earns as a commission for their services. You will find a range of commissions from 35% to 45% of the gross revenue generated.

Ask your property manager if there are any hidden costs which occur outside the commission; other costs to owners may include credit card processing fees, the cost of consumable supplies (paper towels, toilet paper, laundry detergent, shampoo, etc.) and administrative fees. Determine if someone from the vacation rental company will personally walk through your home prior to each guest arriving and following each guest departure. And finally, ask to see a complete list of what you are expected to supply for your home. This list should include the number of linens per guest, any particular furnishings or furniture, wifi connectivity, a hot tub, etc.

At Breckenridge Associates Real Estate, we understand the importance of making a good decision when choosing a Breckenridge vacation rental company. Ask for a list of local vacation rental companies to start you on your search for the company that best meets your needs.