Girlfriends Guide to Investing in Short Term Rentals in Colorado's Mountain Towns
Hey there, fellow mountain lover! Are you dreaming of owning a cozy retreat nestled in the majestic Rockies of Colorado? Imagine waking up to breathtaking views, the crisp mountain air, and the potential for lucrative investment returns. Well, grab your favorite mug of hot cocoa because we're about to dive into the world of investing in short-term rentals (STRs) in Colorado's mountain towns.
Unveiling the Perks of Short-Term Rentals:
Higher Cash Flow: Let's talk about the money, honey! Short-term rentals often boast higher nightly rates compared to their long-term counterparts. Think about it – travelers are willing to pay a premium for a unique mountain experience, especially in picturesque locations like Colorado's mountain towns. With short-term rentals, you can capitalize on this demand and enjoy a steady stream of income that can significantly boost your bank account.
Low Risk of Eviction: Say goodbye to nightmare tenants and lengthy eviction processes! With short-term rentals, you're not tied down by long-term leases. Instead, you have the flexibility to welcome new guests regularly, reducing the risk of problematic tenants overstaying their welcome. Plus, you have more control over who stays in your property, allowing you to screen guests and ensure a positive experience for everyone involved.
Property is Well Taken Care Of: One of the biggest perks of short-term rentals is the peace of mind that comes with knowing your property is well taken care of. Unlike long-term tenants who may treat your property like a frat house, short-term renters are more likely to treat it with respect, knowing they're only there for a brief stay. This means less wear and tear on your investment and fewer headaches for you as a property owner.
Paid at Check-In: Cha-ching! With short-term rentals, you get paid upfront when guests check in, providing you with immediate access to your rental income. Say goodbye to waiting for monthly rent payments – with short-term rentals, you can enjoy a steady stream of income throughout the year, allowing you to reinvest in your property or treat yourself to a well-deserved vacation.
Maximizing Tax Benefits with Cost Segregation: Now, let's talk taxes – but don't worry, we'll keep it simple! One of the biggest perks of investing in short-term rentals is the ability to maximize your tax benefits through cost segregation and bonus depreciation. Cost segregation allows you to accelerate depreciation deductions by identifying and reclassifying personal property assets to shorten the depreciation time for taxation purposes. In other words, you can deduct a significant portion of your property's cost in the early years of ownership, resulting in substantial tax savings. This means more money in your pocket and less money going to Uncle Sam – a win-win in my book!
Now, you might be wondering, "Why isn't everyone doing it?" Well, investing in short-term rentals isn't without its challenges. It can be tough to find the right property, and it requires a significant upfront investment. Plus, managing an STR isn't exactly "set it and forget it." It requires ongoing attention and effort to ensure your guests have a memorable stay. But fear not, my friend – with the right mindset and a little elbow grease, you can overcome these challenges and reap the rewards of investing in short-term rentals.
Scouting Out the Perfect Property:
So, where should you set your sights in Western Colorado? Think Park County, Grand County, Clear Creek County, Eagle County, and Summit County. These areas offer prime opportunities for STR investment, with favorable legislation and plenty of outdoor activities to attract guests year-round. But don't just settle for any old property – do your research and find the perfect mountain retreat that checks all the boxes for potential guests.
Driving Revenue in Mountain Towns:
Now, let's talk about what drives revenue in a mountain town. Think proximity to activities, stunning photography to make your listing stand out, and amenities like hot tubs and game rooms that will keep guests coming back for more. Single-family homes reign supreme in the world of STR investment, offering exclusivity and high demand. So focus on finding a property with all the bells and whistles that guests are looking for – trust me, it'll pay off in the long run!
So, are you ready to turn your mountain getaway dreams into reality? Investing in short-term rentals in Colorado's mountain towns is a surefire way to combine your love for adventure with savvy financial planning. So go ahead, take the plunge, and start building your mountain empire – your future self will thank you for it!
Be sure to check out our sponsors Good Neighbor Realty who are experts at finding short term rentals. A few RMWI board members could help you as well! Happy STR shopping!
Love, M
Mackenzie Page is a Realtor, Investor, Writer, and Herder-of-Chickens living on her small hobby farm in Denver CO with her partner, and rescue pup. As a board member of Rocky Mountain Women Invest she runs the website, blog and future podcast. Follow, like and share!
Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.