Artsy, historical, gastronomical and adventurous—Park City has many draws for locals and visitors alike, which is what makes it such a fantastic and often lucrative place for vacation rentals. Nevertheless, the vacation market is fickle so we’ve consulted our own Mary Ciminelli, a Summit Sotheby’s International REALTOR® in Park City. She is an expert in income properties, and has supplemented her real estate expertise by studying investment analysis for rental income properties. Mary also owns and operates a nightly vacation rental property management company, which gives her an intimate understanding of the rental market in Park City and Deer Valley.
So, what are the essentials for a profitable vacation rental?
Bank on the nearby slopes.
When in Park City, Mary suggests starting with the slopes. Start out by choosing a property very close to at least one of the three ski resorts in Park City, and if you can find a ski-in ski-out property, even better.
Choose a property close to downtown.
A property both close to downtown and the resorts provides an assortment of activities that will likely lengthen the stay of your renters. Proximity to downtown and Main Street is even more important in the off-season – when the powder is no longer a draw. Walking distance is ideal. However, the next best thing is nearness to Park City’s free bus system.
Choose something modern and spacious.
Park City hotels effortlessly merge luxury with sport. A vacation rental must be updated and include similar amenities in order to compete with these powerhouses. Features such as a great view, hot tub, pool, fireplace and a large number of bedrooms will set you apart from the rest and allow you to increase your rental price.
Compare apples to apples before you buy.
Find out past rental income figures if you can. If this isn’t an option compare your potential property to others in the area with a similar number of beds/baths, finish level and proximity to the slopes and Main Street. Don’t forget to factor in the hot tub.
Know your HOA.
Some HOA properties are not renter friendly, do your research and make sure there are no rental restrictions. HOA fees will vary, so find out exactly what exactly is covered.
Choose a property management company wisely.
Compare the price of different property management companies before you buy because this number will affect your net rental income. Focus on a company that has a small amount of properties to manage, one-on-one personal service with both owners and guests and will market your property well, which a vital element to maintaining profitability.
Figure out your true rental Income.
Once you know what your maintenance fee covers, factor in utilities, insurance, taxes and HOA fees. Consult with your accountant about the advantages of depreciation and eligibility for a 1031 exchange. Having an idea of your potential rental income is a vital when negotiating a purchase price.
Realize your rental income will vary.
The income of your Park City vacation rental is subject to all kinds of things, from the season, to ski conditions, to the current economy and flight costs just to name a few. Your budget when buying should allow for that flexibility.
If you are interested in purchasing an income property in Park City you can start by contacting our Park City real estate office. Or, browse our current listings. Summit Sotheby’s International Realty is the exclusive Sotheby’s International Realty Company for the state of Utah. We have 7 offices and over 100 brokers and support staff associates serving some of Utah’s best-known luxury markets including; Park City, Deer Valley, Heber, Midway, St. George and metropolitan Salt Lake City.
About Mary Ciminelli
Mary Ciminelli is a top-ranked real estate agent at Summit Sotheby’s International Realty in Park City. Mary’s primary focus is investment and rental properties in the areas close to the Deer Valley and Park City ski resorts. She also has extensive knowledge of the Park City single-family home, vacant land and ranch markets.