Vacation Rental Property-Park City
You should consider buying a home or condo in Park City to use as an investment property to generate income if you are ready for a vacation rental. Vacation rental or short-term properties are accommodations that travelers can rent on a short-term basis. These accommodations range from high-end luxury properties to spare bedrooms in other people's apartments and can include homes, condos, villas, apartments and even tents, yurts and boats.
Ownership costs in Park City, such as property taxes and HOA dues, as compared to what can be earned in renting their property, usually average out at the end to be quite even in costs. The higher-end luxury properties and more amenity-rich, and therefore more expensive in HOA, bring in about the same overall percentage of net income to the owner. Owning property in a vacation resort town like Park City can be a great investment, if you look at it in the right way, and have realistic expectations.
When deciding to purchase a second home, vacation condo, or investment property you need to be comfortable with the costs of ownership associated with the property. These include utilities, property taxes, property insurance, HOA fees, maintenance and upkeep costs, and potential future repair costs. You may also need to hire a local property manager to assist you and watch over the property.
The cost of owning either a home or a condo generally works out to be about the same. Any home, townhome, or condo has the standard utilities plus normal upkeep, maintenance, and saving for future repairs and replacement.
If you rent out your property on a long-term basis, such as a 6-month or 1-year lease, it can often be less to deal with because you just have one tenant. But renting it out long-term means you will probably not get to use it yourself. If you rent out your property on a nightly/vacation basis you'll be able to set aside dates for your own use, or to offer to family and friends. But nightly and vacation rentals can be a lot of work.
Park City is primarily a ski resort destination town, so obviously, winter bookings are much stronger and are more expensive. Summers have become busier over the years and depending on where in town your property is located you could do fairly well with summer bookings too. Park City is integrated with Airbnb and all other major vacation rental websites and you can market each individual home separately on websites such as VRBO and HomeAway. However, it is important to note all owners or operators planning to offer overnight lodging for a fee must apply for and obtain a Nightly Rental License from the City.
Additional: 4 Major Tips to Buying a Rental Property