Renting a Breckenridge Home Can Make $ Sense
When making your Breckenridge real estate purchase, you may consider the idea of placing your new home or condo in a vacation rental program or even long-term renting.
Short Term Income Opportunities
Short-term rentals bring in revenue to offset the cost of the home, but leave plenty of opportunities for you to make use of your new second home. In general, it's not a great idea to leave a home vacant for too long, so if your uses are minimal, short-term rentals might be a good financial decision, even with the extra wear and tear that renting creates.
Renting a home by yourself without the help of a local property management/vacation rental company might (or might not) produce a bigger profit for you, but much more work. You may benefit from using a Breckenridge vacation rental company that will manage the reservations and care for your home as your would. The best companies have long-term partnerships with cleaning and maintenance companies and have top-notch marketing skills to increase bookings for your property.
There are two strong seasons for vacation rentals: November to April when the Breckenridge Ski Resort is operating, and June to September when visitors enjoy the cool mountain temperatures. Because the weather is so pleasant, visitors from all over the world come to Breckenridge to hike, bike, run the rivers, hear music, or participate in the many, diverse summer activities. Depending on the location and size of your Breckenridge vacation rental property, owners may see 100-200 nights per year reserved by guests.
Benefits of Property Managers
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 visit your home frequently to ensure the heating system is functioning properly in winter, so you avoid frozen or 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 questions up front to determine which company can best meet your needs. Ask the rental company for projections of your property's 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. Keep in mind these will be only projections and the more professional the company the more likely they will not inflate their estimates. More importantly, ask what the company will do for you, how hands-on their approach will be, and what they will do to market your home for rent. Find out what the company will charge as a commission for these services. You will find a range of commissions from 15% to 45% of the gross revenue generated.
Ask your property manager if there are any hidden costs which occur outside the commission, especially in cases where a commission is lower than 30%. 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 departure. Finally, ask to see a complete list of what you are expected to supply for your home. This list should include kitchen utensils, particular appliances or furniture, WiFi connectivity, a hot tub, etc.
Long Term Rentals
Occupancy of long-term rental homes for locals is always close to 100% because we have many seasonal employees.
One benefit for long-term or season-wide rentals is that there is less coming and going resulting in decreased cost of having to have the property inspected. Advertising costs will be minimal because good rental homes are always in demand.
At Breckenridge Associates Real Estate, we understand the importance of making a good decision when choosing a Breckenridge vacation rental company. Ask us for a list of local vacation rental companies. We're happy to help you on your search for the company that best meets your needs.