Aspen Snowmass is one of the most popular tourist destinations in the world, and condominium or home rentals have comprised most of the rental inventory since Aspen was reborn in the 1960s. Compared to other mountain resorts, this destination has the best air service, cultural events, and other seasonal attractions that make it a great place to vacation. Aspen also offers two distinct and desirable seasons with peaks in winter and summer.
Many of the core condominium buildings in Aspen
were designed with short-term rentals in mind.
Aspen and Snowmass area properties are highly desirable for short-term rentals if they have certain characteristics valued by vacationers. Many properties may also be very attractive and best rented seasonally or long-term under certain circumstances. A second home or primary residential use is the choice for many owners, for different reasons, so let us explain each!
Short-Term Rentals
Potential property owners should first decide whether they need the rental income the property can generate, and if they can emotionally handle the issues that come with renting their property. While significant income is earned, there is some, (though usually minor) wear and tear.
If the owner needs the income to cover the property's operating and carrying costs, there are many options available.
Condo, Townhome, or Single-Family?
Core condominiums, townhomes, single-family homes, or fractional condominiums all comprise the current inventory, with core condominiums being the largest type rented as short-term vacation rentals. Many of the core condominium buildings were designed and accessorized with short-term rentals in mind. These buildings likely have front desks, common pools, common laundry, parking, and other services that short-term rental guests desire and need. With these services come additional HOA (homeowner association) costs, which are offset by increased occupancy and higher nightly rates. Core condominium owners should expect to cover all ownership costs for HOA dues, property taxes, utilities, as well as some personal costs for unit upkeep, etc.
Single-family homes beyond the central core but still close may be attractive because of their size or quality. Usually, homes rent better in the summer season when access to the lifts or the busier core area is less important. In fact, summer luxury home rentals command higher rates than winter rentals.
Fractional properties, such as the Independence Hotel or the Ritz-Carlton Club, are also very attractive to rent and provide a great way for the property owner to cover HOA dues when renting one of the weeks they do not use themselves.
Seasonal Rentals
Many owners choose to rent their unused time
through Frias Properties' vacation rental department.
Seasonal rentals work well for owners who predominantly use their property during one season but not both. Usually, single-family home owners are the type who have properties attractive to seasonal rental tenants. For example, Florida and Texas owners love the mountains’ temperate climate during the summer and head to Aspen to escape their states’ heat and humidity. Yet they may not be ski or cold-weather enthusiasts. Therefore, renting their property during the winter season may work best for them.
The other factor that may cause a property owner to rent seasonally is when they do not need to use their property during any one of our two desirable seasons and can give up the use of their property for a longer term. They can net more income with lower commissions on long-term rentals and fewer overhead costs from short-term rental turnovers.
Long-Term Rentals:
There is strong demand for long-term rental condominiums, townhomes, duplexes, and single-family homes in Aspen Snowmass. The types of long-term renters you can expect include the following: those who want to try certain neighborhoods before buying; those who want to make sure Aspen is a place they are ready to invest in; those who are current owners who are remodeling and need a place during construction; or divorce situations where one needs another home and wants to stay here.
There is a limited supply of these types of properties available for long-term rentals, because most people who buy property here do so to use it. However, if an outside factor requires a homeowner to seek a long-term rental, they can expect to receive about 3% of the property’s value in gross rental income.
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