Owning a vacation rental property (or multiple properties) in Aspen is a great investment. This is a very popular luxury resort destination with things to enjoy in all four seasons. From the incredible skiing in winter to the hiking, biking, golf and fishing in summer, there is so much to do and enjoy in this mountain paradise all year round.
There are many reasons why you’d want to buy an investment property here in the Roaring Fork Valley. You may live in it for part of the year as a second home or vacation home. You may rent it out during other parts of the year. You can use the home or condo to earn a nice supplemental income while also watching the property appreciate over time. The Aspen real estate market continues to grow and home values in this area keep trending upward year after year. It is one of the most desirable and active luxury markets in the world!
If you already own an investment property or second home in Aspen or you are thinking about investing in Aspen/Snowmass real estate, here are some tips to consider:
1. Stay in Your Own Properties
Most people buy rental homes in Aspen with this very goal in mind. They intend to stay in their own properties when they are visiting and then rent it out when they are not here. However, the longer you own this type of home, the less you usually end up using it. The rental income is so lucrative and the timing can be tricky with other tenants coming and going throughout the year. However, it’s a good idea to stay in your own vacation rental units at least once a year. You’ll be able to experience what your renters are experiencing, which helps you keep tabs on your property management services. Plus, you can check on the property with your own eyes. A periodic first-hand inspection is always beneficial when it comes to keeping tabs on your important Aspen real estate investment.
2. Hire a Reputable Property Manager
A lot of people buy rental homes thinking they’ll just manage the property themselves, only to realize how much work it is. Hiring a reputable property management company or caretaker will remove so many headaches for you, especially when you live out of town and aren’t able to deal with the property directly as needed. Do your research and ask around to find a property manager you trust with your Aspen rental home. If you would like a referral, let me know and I’d be happy to recommend some of the best property management companies in town!
3. Understand Dynamic Pricing
Aspen is a seasonal market. You will want to use a dynamic pricing model based on rental supply and demand in this area at different points of the year. A rental here in September (one of our shoulder seasons) is going to need to be priced very differently than a rental in February, when it’s the heart of ski season in Aspen/Snowmass. Adjust your pricing accordingly so you get the maximum returns during the most popular times while not overpricing during the less active seasons.
4. Buy the Right Rental Properties
If you are buying a vacation home in Aspen, you want to research all your options carefully and shop around. You have to look at it from multiple angles. Consider how much you will actually be staying there and what features will be most important to you and your guests. However, don’t let that be the only driving factor. You may want a perfect place for yourself, but you may only be there a few weeks out of the year. You have to think about what your renters will want and which features will have the most draw for people visiting this area. A place with many bedrooms will always be desirable in the rental market. Think about things like this before you buy any property you intend to rent out while you are not there.
5. Spare No Expense on Furnishings
Aspen is a very high-end market that attracts wealthy visitors from all over the world. Whether you are buying a smaller place for the average person to rent or a bigger home that can accommodate large groups and/or big spenders, furnish the home for a luxury look and comfort. People are coming to Aspen for this one-of-a-kind mountain resort experience. Make your place look and feel special to keep them coming back year after year. Don’t go cheap on your furnishings, appliances and other important features that your guests will appreciate. In the long run, these investments in a nicer living space will pay for themselves.
6. Choose the Right Business Structure
If you just own one investment property, then you may not need to get too fancy with your legal structure. If you own more than one, then you will want to consider forming a limited liability company (LLC) or corporation. These legal structures come with more tax benefits and protections that will help keep your investment income separate from your personal assets. Talk with your financial advisor to set up the proper business entity for your real estate investments.
These are just a few tips you will want to consider when you are buying an investment property in Aspen or you already own a vacation or rental home in this dynamic market. If you are looking to buy property in the Roaring Fork Valley, I’m here for you. I can help you find the ideal home and connect you with the area’s best property management companies, so you make the most out of your Aspen real estate investments.
Call me today at (970) 366-0891 or email me at [email protected] for more information.
Aspen Real Estate
DRE # FA.100019229