Buying into a short-term rental property can be lucrative for the average real estate investor. It's even better when the rental property is located in a highly desirable vacation destination like Aspen, where certain types of short-term and seasonal rentals are highly sought after for those looking for a beautiful escape -- during both the winter ski season and the warm summer months.
Here are a few things you might want to consider if you're buying a property that you will rent out short term:
- Your property will get hit with some minor wear and tear. Short-term renters can be, on average, a little harder on a property than long-term renters. Be sure to work in the costs associated with minor maintenance and repair into the rental cost that you charge.
- Decide what your goals are. Is this a property that you want to enjoy for several months out of the year and rent out the rest of the time to afford the cost? Or, is this a property that you intend for investment and income-generating purposes alone?
- Core condominium buildings could be a great choice as many in Aspen have been designed with the short-term rental market in mind.
- Homeowners' association fees will likely be associated with your property. Make sure you understand what they are and that you've projected the costs associated with maintaining the property accurately.
- You might also want to consider looking at townhomes, fractional condominiums and single-family homes as investment options.
- Single-family homes are usually outside the center of Aspen, but they're still attractive to some short-term renters due to their size and comfort. Homes are more popular during the summer months when accessing ski lifts is less important to vacationers.
If you want to invest in an Aspen property to earn rental income, you have a lot of options available. Be sure to investigate and personally inspect any property you're thinking of buying. Also, make sure you've considered all aspects of Colorado real estate laws that could apply to your transaction.
Source: Frias Properties, "Buying Aspen Property for Income Generation vs. Private Use, Part 1," accessed March 08, 2018