Aspen Vacation Rental. Switching from annual rental agreement

[Andrew Tibma]

Hello,

I am hoping to get advice on whether or not I should switch my home from a typical annual rental agreement to a vacation rental. 

The home is in aspen Colorado 1.2 miles from the Aspen Mountain Ski resort. Currently we have a handy man living in the home who pays us $3,500 monthly for an unfurnished home. He does repairs as needed to the home. The home is owned without a mortgage. We pay all other expense on the property.

There is a vacation rental comp that is getting $325/night on the same street. This comp is similar to our home in the sense that it has not been updated since the 1970's. We had lack of interest getting the home occupied as a vacation rental because it is outdated. I will be speaking with the manager of the turn key property management company this afternoon to get is revenue expectations. I was also told the management company will charge 18% of all rental income. They will do all advertising and cleaning of the property. 

I was told that they may do a rental revenue commitment that they must meet. Any advice would be great. 

Andrew