The short-term renal industry is growing, and demand appears to be keeping pace with interest. Investing in short-term rental properties are now an incredibly attractive prospect, whether it’s part of your retirement plan, an opportunity to pursue a location-independent life, or a step to achieving a family goal of owning a second home. Purchasing a vacation property has the potential to deliver significant income to offset mortgage and other costs, but—as with any investment—due diligence is critical to a successful outcome. The research necessary is wide-ranging if you are to make an informed decision. Here are a few notes to consider.
Not all realtors know the short-term rental market. Only a small percentage of realtors understand the vacation rental business, so it’s important to work with an agent who does. Luckily, Breckenridge is an area where rental real estate is relatively popular, but you’ll still need to spend some time seeking out a professional who knows what they’re doing.
Buying a turn-key property might be the best investment. If you’re considering a short-term rental property with a list of previous guests, it may come with reservations already in place. This is an incredibly valuable asset. The property can start earning income from day one, and there won’t be a need to set a lower rental rate to attract guests. These properties may be listed over market value, but the benefits will outweigh the costs.
Understand your area. Regulations can limit or prohibit rentals. Every location is different (even within Breckenridge), so do the research to ensure you know what you’re doing
Demand will be feature-driven. If you’re investing in a ski-in/ski-out condo, understand that this feature will demand a lot of guests. This type of property is incredibly popular among renters in Breckenridge, so you’ll need to spend some time advertising this as the main draw of your vacation home.