Local Area And Real Estate News

             The Headline touts rental revenue, but what is "great revenue" in Park City, UT?             Park City, UT is home to many second homes and vacation homes that are used infrequently by their absentee owners. Many of these homes and getaways are available as short term rentals for vacationers. Also, the majority of the hotels in Park City are condominium hotels meaning that each unit is separately owned and a rental management company is running the hotel amenities while sharing room revenues with the owners. Thus when a property is listed for sale in Park City, the subject of rental revenue opportunity is often mentioned, if not by the seller, then by the prospective buyer.

            Great rental revenue though is subjective. Will the purchase produce a positive cash flow? Will it be revenue neutral? Or will the buyer be making monthly payments to own a little piece of Park City? The answer is, it all depends.             I have a "rule of thumb" that generally holds true for nightly rentals in the Park City area. Enough revenue will be generated to cover taxes and HOA fees after the revenue split with the property manager. There are many variable in this simple equation: how much owner usage will there be and during what times? How well is the property marketed? What is the management split (in Park City it is usually around 50% for nightly rental property)? What amenities are available to the renters? Etc. etc.             Recent price changes have made many of the revenue opportunities look stronger, but you must also consider that rental revenues have been falling along with condominium prices in Park City. A recent travel symposium speaker estimated that nightly rental prices will be off by 17% this year after falling 10% last year and 10% the year before, so while nightly lodging tallies which count room nights show increasing visitor nights, rental revenues are far from their peaks. Buyers and Sellers should also note that added rooms in the Park City area bring more competition to fill each bed.             Will the "great rental revenue" on the property you buy in Park City prove to be a good retirement scheme?  I doubt it. Will it provide you with a great place to vacation, create family memories, and provide a drive to keep you working in hopes of retiring here? Definitely. I always say "purchase a home or condo in Park City for the lifestyle it can provide and the enjoyment it will bring you".             Rarely does a property in Park City "pencil" when it comes to rental revenue. Note that I didn't say "never" and appreciation cures everything when it comes to investments. Besides, do you really want to stay in that great revenue producing storage facility you bought in Salt Lake City?             Let the YouInParkCity.com Group assist you in finding a home or condominium in Park City, UT.