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Blog :: 01-2012

Have We Hit the Bottom?

The weather Gods keep dealing  Stratton A tough deal, snow then rain but Stratton's expert snow making and grooming teams keep providing great skiing at Stratton.      Our office has gotten busier with showings and contracts are appearing on a regular basis in our updates .  

 Perhaps, the housing market has "Hit the bottom."   Several of our Buyers believe now is the time to buy before prices start going up.  Lawrence Yun, chief economist for the National Association of Realtors (NAR), says "The pattern of home sales in recent months demonstrates a market in recovery" and buyers are taking advantage of  "record low mortgage interest rates, job growth and bargain home prices."  the National Association of Realtors reported a 5% increase in home sales in December  over a 1.7 % annual increase in homes sales for 2011 Indicators have shown that the vacation home market is stronger than the primary home market.     Buyers are looking for great deals in locations they want to spend more time in and are recognizing that there are some great deals now.

Several great deals here in the Stratton Mountain resort area are this 5000+ sq ft home, which needs some completion has just relisted $100,000 less that it was previously for sale.   Condos are a particularly great deal now many selling at a 25 % off 3 year ago prices.    Now is a great time to visit Stratton, and look at the many super opportunities there are to purchase real estate..

Short Term Rentals

Short Term Rentals at Stratton Mountain

Our Short term rental department is busy booking weekend and weekly winter rentals here at Stratton.    The snow is better than out West this year and Stratton is  an easy destination resort. Short term rentals can also provide extra income to an owner. Please enjoy the article below shared by Ashley Halligan, a property manager software analyst for Software Advice.  For information on availability on any of our rentals, please call Tara or Katie in our rental office.

 

Risks and Rewards of Short-Term Rentals | A Starter Guide for Property Owners

 

With the growing popularity of short-term rentals, they're becoming all the frenzy in the property management market - both for second-home owners and property management groups with a vast portfolio of rentals. The income potential is one of the most obvious and attractive catalysts to dive into the market. But there's a handful of both risks and rewards that should be carefully weighed before converting conventional, long-term rentals into short-term rentals or before investing in a property solely for this use. In a detailed guide for property managers outlining four risks and four rewards of this market, we've created a launching point into the necessary research that should be done before diving in head first. 

 

Some of the controversy surrounding short-term rentals stems from both hotels and city departments. Hotels argue that property owners renting on a short-term basis should be subject to the same occupancy taxes that they have to pay as an operative business. City officials make the same claims, suggesting that if short-term rentals are allowed, the city should gain the revenue from the HOT (hotel occupancy tax). Because of the ongoing debate, some cities have banned short-term rentals altogether. Others have implemented restrictions. As a property owner considering this type of rental, keeping this in mind is crucial; if restrictions or bans are enforced, will you become subject to a financial loss? Other risk factors mentioned in the guide include the additional costs associated with short-term rentals, competition between other properties and community risks. 

 

The most obvious reward is the revenue potential, with some property owners claiming they can earn 25% of their monthly mortgage payment in a single night; factor in the opportunity to charge significantly higher rates during peak periods in your geographic area (highly attended events or festivals, holiday weekends and summer weeks, for example), and the opportunity to make significantly more than a conventional, leased rental is high. That said, this should be balanced with the aforementioned additional costs to truly calculate profit potential. Some property owners rent on a short-term basis as a way to preserve a property, claiming short-term renters are easier on a property and allows the owner more access for upkeep and maintenance. Other rewards that may surround these rentals include the community rewards - like promoting tourism, and tax breaks for maintenance, marketing and large-ticket purchases.

 

No matter which reward has attracted you to potentially managing these property types, it's important to gauge all possible outcomes and make the best decision based on your property type, its location and all the possibilities that may be potential rewards or hindrances. 

 

January 2012

While the Snow gods have not been friendly to us at StrattonMountain so far this winter, the expert snow making team has made wonderful snow.   I  skied  on Wednesday and the snow guns were working and the skiing on the top of the mountain was really great.  An afternoon of flurries has added to local Stratton Mountain ambiance by turning the ground white again.   Stratton will continue to make snow and long range weather reports the possibility of a storm here at Stratton prior to Martin Luther King weekend.     All of our Christmas guests reported that they had a great time skiing here at Stratton.    There are still many good vacation rental options at Stratton.      This is a good time to buy in the Stratton Mountain area.   Many list prices are down 25% from the high of a few years ago and there is a good inventory of condos and Stratton homes  and Winhall homes for Sale here at Stratton.    Stratton Mountain is celebrating its 50th Anniversary with fun events all season.   Come visit Stratton  Martin Luther King  weekend and let our agents introduce you to the area.