Colorado Mountain Condo & Rental

[Joel B.]

We are considering a mountain condo in the Fraser Valley of CO and something that we would use part time - mostly in the off season (Summer months).  It will be very hard to cash flow from my estimates but curious what others have done in buying and managing such properties.  Insights at all you can share?

[Garry C.]

Housekeeping is the big one. Those are generally pass-through costs. They might charge you $25/hour for 3 hour turnover service, you pass that through as a fee to the renter. $89 sounds reasonable, and gives you $14 towards toiletries. Handyman service I do myself, as I did the rehab. I've had this one 3 years and my craigslist dishwasher finally bit the bullet, so I grabbed a new one for $100 and hauled it up there about two weeks ago. If you're not handy, or don't have easy access, then you'll want to hire this out too. I have one that I can call on if need be, recommended by my housekeeper, who was recommended by my realtor.

Other systems that I use are the smartphone apps for booking. Most of my business comes from VRBO, and I can respond and send quotes, accept reservations, etc. from anywhere at anytime. That's a big leg up over the competition, simply being responsive. It seems most folks that do this sort of thing are just trying to make some extra money on their mountain getaway. Even just doing a little research on the price of the competition once a year can put you far ahead of the pack. You don't necessarily want to be the cheapest on the block, but you need to know when the rates change seasonally. Then set yourself a reminder to update these once per quarter.

An automated lock that allows you to generate a code that only works between check in and check out is something I'll never go without again. One ruined vacation because they locked the keys in the condo and you've just lost a customer. Not to mention you might be paying out of pocket to have your housekeeper show up on her day off and let them in, if you're a nice guy. Or you could pass those costs through. Either way, they have a negative view of their stay at your rental. Buy the eRentalLock.

What else... cultivate those reviews! I ask for them when I send back security/damage deposits (as long as I didn't have reason to keep the deposit, which I hardly ever do). Add a little note that says "Great reviews help keep us booked, so your rental costs don't increase over time." Works very well, I have far more 5 star reviews than most of my competition, which keeps me booked.

Guide Book, online (web site/blog, vrbo app) and physical binder at the property. I keep check out instructions, how to start a fire in the wood stove, how to use the can opener, dial 911 for emergency, closest hospitals, pharmacies, restaurants and liquor stores, etc. I also have a bunch of my favorite crock-pot recipes in there. Besides being pet friendly, my niche is the fully stocked kitchen and catering to foodies like myself. Find your niche, and sell it to the masses. And then whenever one of them has a question that you've not already answered, immediately add it to your FAQ on the blog/site/app and your Guidebook document. Print that page and swap it in on your next visit, or mail it to your housekeeper and ask her to do it for you.

One of these days I'll write a book on it. There are a ton of ways to automate this process and make it easier than most people think it can be.