I hope we can all agree that buying a mountain home is always the way to go. High-altitude living is entirely different from life anywhere else. The mountains afford you peace, solitude, and privacy, with a spectacular view to boot. Nature is just one step out your front door, allowing a myriad of outdoor play options year round and a constant supply of fresh, piny air. The high altitudes offer milder summers and snowier winters, and in combination with the slower pace, benefits to your health and longevity.
If you’re somebody who enjoys getaways to the mountains as often as possible, you might just save yourself a bundle by buying a Colorado mountain property for sale and using it as a short or long-term rental in between visits. We’ve come up with a list of benefits and considerations when buying a mountain home as a rental to help you make your decision! And if you’ve already made your decision, consider some ideas to on how to build your rental business and where to buy it.
BENEFITS OF BUYING A COLORADO MOUNTAIN HOME AS A RENTAL
Mountain homes are definitely cheaper to buy than coastal or city homes. And mountain rentals are meant for short, rustic stays because the amenities are outside! There’s no need to spend on a huge, modern place (unless you want to capitalize on the versatility of renting out a luxury home for bachelor/bachelorette parties, family reunions, corporate retreats, etc., of course!) to get an ROI.
Don’t we all want a passive income? The ability to have a second source of income that is constant and requires very little actual work? Well, this is it! According to TurnKey and Vrbo, “the average owner who rents out a second home collects more than $33,000 a year in rental revenue.”
The value of a mountain home is constantly rising, especially these days with people desperate to get out of town. If you’re committed to the home for the long haul, you will continue to make more in passive income with each coming year, especially if the home is located near national or state forests or popular skiing and recreation areas!
Buying Real Estate in general, and rental property in particular, also comes with “tax advantages, such as deductions for interest, insurance, and other expenses,” informs Investopedia. You may even qualify for tax breaks. Be sure to consult a tax professional when the time comes!
Diversify your portfolio
We know. It’s a bit of a catchphrase, but it’s also true. The more diversified your investments are, the more covered you are in case of any type of hardship or disaster.
THINGS TO CONSIDER WHEN BUYING A COLORADO MOUNTAIN PROPERTY AS A RENTAL
You’ll need to make sure to winterize and fireproof your mountain rental property.
Who’s running the show?
Keep in mind that either you will need to be the landlord, or you’ll need to hire a property management company to handle the in’s and out’s of your rental.
Make sure that the cabin is equipped with an emergency kit in case of a snow storm or flood. It should be stocked with dry firewood, drinking water, non-perishable food reserves, candles, flashlights, blankets, layers, and a power generator.
Set aside some of your income
Be sure to be putting some of your rental profits aside to prepare for inevitable maintenance and cleaning costs. There will be a little more than normal wear and tear on a rental property.
Be in the know
Make sure that you are up to date on any local and state landlord/tenant laws and short-term rental regulations before you buy.
WHERE WE COME IN
Code of the West Real Estate has a vast catalog of Colorado mountain property for sale. Let us help you find your dream vacation rental! Contact us today to talk to one of our expert Real Estate agents. And we’ve recently expanded to cover houses for sale in Durango, CO! Now that is some sweet mountain Real Estate.