The mountains of Colorado are not only a magnet for skiers and hikers, but for real estate investors as well. In the last few years, resort rental property in Colorado mountain investment property has proven to be one of the better return-on-investment (ROI) with the entire state showing demand increases for housing. On-site resort and off-site individual properties are in demand and will show a profit for any investor wanting to expand their rental portfolio with very few drawbacks.
With Colorado resort time in such high demand, owning a Colorado resort area home provides a place to stay while enjoying the snow or sun without having to fight for residential or hotel space. First pick of choice vacation time goes to the owner long before any rental requests come in with no limits or blackout dates. Additionally, the owner chooses the décor and furnishings, making the house even more personal while in residence, not something that can be said of hotels.
Profitable Rental
The rest of the year, as a rental property, the house pays for itself…and then some. With nightly rental prices ranging from a paltry $750/night to as high as $17,500/night, rental homes in resort towns such as Aspen or Vail are one of the most lucrative businesses in these areas. Many properties are reserved over a year on advance with non-refundable deposits an industry standard. For many owners, a maximum of 7-10 nights of rental are all that’s necessary to make the monthly mortgage payment. Everything else is profit.
Rental Property Management
However, with any rental, property management is essential. An owner of “on-site” resort property can relax and let the resort management company handle the details for a marginal price. Guests are allowed to use the resort’s amenities for no additional costs and are considered as official guests of the resort. Unfortunately, the property owner must adhere to rules and regulations laid down by the resort concerning subjects such as construction, trash removal, etc. In this way, a resort can be equated to a Home Owner’s Association.
Off-Site Individual Ownership
On the other hand, the option of “off-site” individual ownership carries none of the regulations laid down by a resort management company and the owner has much more over-sight of internal and external décor, upgrades, and trash removal services. Sadly, however, guests must pay full price for resort benefits. Additionally, an owner who does not wish to reside in state will probably pay more for an independent property management company.
Colorado Mountain Rental Property
Fortunately, both options are still money-makers. An owner who can lay down 30-40 percent of the asking price can ensure breaking even within 10 years depending on rental price and frequency of rental. Most current owners tend to reserve one weekend per month for themselves with 1-2 other weekends for renters; budgeting at least one empty weekend in their operating costs. This plan will usually cover mortgage costs, taxes, and property management costs with profit left over for the owner.
Colorado properties are becoming some of the most sought after in the country with resort areas booming more than most others. An investor looking to find high ROI opportunities would do well to look to Colorado’s mountain towns as most of these areas are not only high value, but in high demand throughout the year.
When you want a realtor who will make you their number one priority, it’s time to contact me to set up an initial consultation. Feel free to call True Performance Real Estate today and any questions you might have about buying your Mountain Rental Property in Colorado!
Call: 303-317-6311