Explore if this might be the right option for you.
Owning a piece of Colorado as a second home or part-time home may be the right choice for those not ready to make a full-time move to Durango. Enjoying the Colorado lifestyle part-time or seasonally, along with vacation renting, if desired, can be a fantastic way to get the most out of second home ownership.
While working as a licensed Realtor™ since 2015, Hal Lott is a former owner of a vacation rental company in Durango. His expertise in this type of home ownership is an invaluable asset to those seeking this ‘hybrid’ type of second home ownership.
Going strictly by the numbers, vacation rental home ownership may not meet the expectations of the purely investment-minded buyer, but for those seeking to add Colorado property to a diversified portfolio, it may be a ‘home run’. The opportunity to enjoy personal use of the home with reduced costs may be a fantastic way to add another ‘check box’ to one’s long-term financial plan.
In other words, if a buyer is planning to use the home for personal enjoyment with family and friends periodically throughout the year, vacation rental activities can substantially offset the cost of operations of the home. While many variances dictate how much income is produced, it is quite possible that vacation rental income can pay for the bulk of expenses such as property taxes, homeowner’s insurance, Homeowner Association (HOA) dues, utilities, and other fees.
Some homeowners are able to manage rental activities of their home, but it is highly advisable to consider using a property manager that specializes in vacation rental activities. This takes the constant burden of managing the booking calendars, guest interaction, cleaning schedule and more, away from the homeowner, therefore elevating the potential to enjoy the home at reduced annual cost.
For the investment-minded home buyer, many variables determine the potential for return on investment (ROI) for a vacation rental home in Durango, Colorado. An estimate of rental income by a qualified vacation rental property manager may best determine the rental income potential of any home.