1. Can I buy a condo at Stratton and make money renting out for the short term?
Our take on that is "No, you can not make money renting out a ski home or condo". We believe you can only recover up to about 40% of you annual cost of purchasing a unit, by renting it out. This also assumes you rent it out for the holidays. Short term rentals are great to "offset" some of your taxes and condo fees, when you will not be using the unit. One Stratton condo owner only rents there unit during February break and uses it to pay for a ski trip out west.
2. Where should I buy a Stratton condo to get maximum rental rates?
We believe you should buy the best place for your family. That is primary. Then let us find the renters for you.
Renters most frequently request:
"slopeside condos", "mountainside condos" or "walk to the village condos"
wood burning fireplaces
condos that are clean and updated
townhomes big enough for two families
and finally, condos that are priced correctly.
However many of the initial requests for "slopeside" units will actually select a condo on the shuttle route due to size or price. They will then come back to that complex year after year.
3. How do you price a unit for rental?
We start with your purchase price (or the estimated current purchase price) for your unit. Then we multiply it times the "condo nightly rate multiplier" for the Holiday night rate. Then we adjust the rate up or down by the conditon of your unit, location within the complex, type of bedding and comparable rates.
For example, the "condo nightly rate multiplier" on a Vantage Point unit is 0.002. A $250,000 Vantage Point unit times 0.002 gives us a Holiday night rate of $500. Our Vantage Point units are priced from $450 to $600 per Holiday night.
Friday and Saturday night rentals are generally priced the same as the Holiday rate or at a slight 5% to 10% discount). Weekdays, attached to a weekend are offered at 30% to 40% off.
4. What about renting a million dollar unit?
The luxury Stratton condos and townhomes rent well. There is a high demand for location and quality.
The "condo nightly rate multiplier" on a Mountain Watch Penthouse, TreeTop or Hearthstone,for example, is 0.0016. A $1,000,000 unit then has a target holiday rental rate of $1,600 per night.
However even though this is the target and close to owner's cost, many renters will not pay this rate. Actual rentals are slightly lower or $1,300 to $1,600 per night.
5. What about damage?
We take a significant damage deposit. Most renters in this price range are great. Some are perfect. We wondered once when we rented a condo to a young woman who had 4 young children. We stopped in on Sunday and found the condo was not only immaculate, but all the towels washed and folded perfectly.
However things happen. At our condo, most of the "accidents" are things we or our family has done. For example, one daughter dropped a six pack of coke (we even had to wipe down the kitchen ceiling). Another time we let a candle burn down and run all over the coffee table. We have left wet gloves on the leather sofa. Cleaners have spilled water on couches, etc. Primarily, renters use a condo, so things are used and moved around. When we return after a rental, the first thing my wife does is put everything back in its place.
6. What is the worst that has happened where you had to hold money from the renter's deposit?
We have been lucky. Nothing significant has happened in the past 10 years. Let me think.
People have lost passes to the Sports Center.
Some have made long distance calls (although each renter informed us ahead of time to withhold the money since they just had business obligations).
One couple from Tennessee left the pots greesy and some cigarette butts thrown out in front of the unit.
Two seasons ago, we had one renter who would not move their vehicle from the side of an Intervale unit. That is in the fire code. We had to have someone go there at night and make them move it. This renter also had toddlers that played with soap in the upstairs bathroom and dropped it into the toilet. The toilet was stopped up and a mess. We had to take the plumber cost and extra clean up cost from the deposit. The funny thing is that this renter asked if they could return to the same unit the next year. We, and the owner, politely said "no".
Also, toddlers leave a lot of fingerprints all over the glass door. Renters might move anything that might fall when they have toddlers.
With each rental, there is a slight usage factor. That is generally it.