Vail hosts an extremely strong tourist market with both winter and summer activities serving as a huge draw. Their 1.3 million annual visitors are evenly split: 650,000 in winter, 650,000 in summer. This, along with fairly expensive home prices, means a high average daily rate of $461. But finding an AirBnB investment property in Vail takes some legwork. The first question is a legal one.
Can you AirBnb an Investment Property in Vail?
Yes! Unlike some cities that heavily restrict short-term rentals, it’s legal to AirBnB any property in Vail. The city strikes a balance with their requirements to keep the peace between the locals and the out-of-town investors. Some properties are under a special restriction requiring the owners to work in Eagle County 30 hours a week. For the rest, you just need to register for a Short Term Rental (STR) license. You’ll have to comply with parking, trash, and noise regulations. More importantly, you need to have an “Agent” within 60 minutes of the property who is able to respond to complaints 24/7. Simple enough if you live in Vail and don’t mind phone calls. If you’re from out of the area…we do turnkey representation services where we handle it all for you.
Are vacation homes a good investment in Vail?
Indeed. Let’s look at a few numbers.
Let’s take a $922,000 home as our example. With a 20% down payment and a 30 year, 3.92% fixed rate mortgage, you’re talking about a $3,487 monthly payment. Add 50% for taxes, utilities, and maintenance and now you’re at $5,230 all in.
At an average daily rate of $461, you only need to rent it out 12 days to pay for all costs. (That assumes AirBnB is taking a 3% cut.) Call it 14 days because you’ll have to pay cleaners here and there. You see how in just two weeks a month, you’ve got a vacation home that fully pays for itself?
You could spend 6 months a year there FOR FREE and have a million dollar home at the end of it all for your trouble. Or rent it out those other six months and net $80,000 ($461 minus 3% is $447, times 30 days, times six months). It’s an absurd deal.
How do I Invest in Vacation Rental Property in Vail?
There are a few ways to do this. You could run the numbers on AirBnB’s Vail listings. Look up houses on Zillow and cross reference them. Make sure to find out about any quirky restrictions on each property. Bear in mind that the Zillow listings change quickly and might disappear from the market. Find a realtor. Fly out there and do the final home tour.
Or…we could do all of the leg-work for an incredibly high ROI. Up to you.