Park City is home to domestic and international skiers all year round. And if by any chance you didn’t know, in 2002, the city co-hosted Winter Olympics and since then its been known to be ‘America’s Favorite Town’. Not to mention, it also hosted the largest independent film festival- the Sundance Film Festival. And did I even mention, that some scenes were shot at the city itself for the movie ‘Dumb and Dumber (1994)’.
There’s no denying it, tourists either locally or internationally visit Park City- the snow paradise and enjoy a wide range of activities. With that said, an increase in visitors/tourism means greater possibilities for Park City real estate. By simply looking at group size and length of stay one could indicate that now is the time to invest in Airbnb vacation rental in Park City.
According to AirDNA, the current average daily rate is at $392 with a 50% of occupancy rate and revenue of $3,881. It doesn’t take much to realize that this means a great investment in Park City. If you are keen or considering buying an Airbnb vacation rental in Park City, then think about the location and easy access to amenities for prospective guests to enjoy their holiday.
To know more, the article will guide you on:
Its character and its neighborhood are defined by its connection to Park City’s rich silver mining. Old Town is known for its best snow on Earth and is an exciting place to live year-round. But of course, not only does it only offer easy access to entertainment activities such as skiing, snowboarding, hiking, and landscape to mountain biking. A short walk downtown leads to Historic Main Street where fine dining restaurants, shops, entertainments at the Egyptian Center, The Sundance film festival, and National Parks are at its convenience. And not forgetting transportation can easily be accessible to guests. For example, there are bus available for guests that takes you around the town.
If you are interested in buying a property? Consider properties ranging from:
How much does a property cost?
The value of properties normally depends on the size of the lot, access to skiing, and age of the property. If you are considering a property on Main Street or brand-new constructions, they are much at a higher value. However, the prices of condominiums at the base of the Park City Mountains are older but at a great value.
Don’t forget that the best investment tends to gravitate towards single-family homes. This is because of the location, resulting in more high rental occupancy rates.
Estimated Property Cost
Deer Valley is proudly known for ski lovers offering excellent slopes, great customer service, and enjoyable food. But of course, during summertime, guests enjoy a range of other entertainment activities such as:
Not to mention, it is just 5 minutes away from its well-known historic Main Street with its shopping opportunities, nightclubs, and fine dining restaurants to enjoy! Regardless of the season, it’s never a dull moment in Deer Valley.
Over the past decades, Deer Valley has expanded over four following unique real estate:
1. Upper Deer Valley- surrounds the Silver Lake area, close to a variety of renowned lodges, shopping hubs, and restaurants. You’ll find some of the area’s luxurious mountain homes throughout which are located slopeside or a walk away to ski runs. In addition, most properties in the Upper Deer Valley have premier ski access to the best ski resorts.
2. Lower Deer Valley- located at the base of Deer Valley Resort it offers scenic views and ideal proximity to both slopes and Main Street. Not to mention, it is easily accessible to summer concerts and dog swimming at Deer Valley Plaza Lake.
3. Deer Crest- properties in the area offer breathtaking views and offer ski-in & ski-out access excluding snow top.
4. Empire Pass- new and community neighborhood in Deer Valley Resort providing access to Talisker club, shuttle service, amenities in Tuhave including golf.
How much does a property cost?
Deer Valley is considered the most expensive real estate but at a greater value compared to high-end ski towns. It offers different options in the market from:
Estimated Property Cost
The area is close to the Canyons Village resort area offering a variety of home prices from slight interest to multi-million-dollar homes. Did I mention it? Canyon Village is the largest ski resort in the US and is conveniently located mid-way to the Old Town and Kimball Junction area.
It’s known for its:
How much does a Property cost?
Price in properties in The Canyons depending on the range of properties starting from condos, to ski-in and ski-out homes gated community of The Colony, hotels, and single-family homes. However, after 2004, properties that were built have a CVMA (Canyons Village Management Association) buyer transfer fee of 2%.
Estimated Property Cost
It’s always a big step when investing in Airbnb vacation rental property. It may even be daunting to think about what needs to be considered and what’s not. Fear not, here are some guidelines and tips to buying an Airbnb vacation rental in Park City:
Before plunging into the market, it is best to first speak with Airbnb hosts or local property owners about their experiences. That way you have the knowledge and understanding of the challenges of owning an Airbnb vacation rental. Do also make sure you have a clear goal whether it is immediate cash flow or to expand your investment portfolio.
When investing in any property, it is ideal to firstly consult with the pros in sorting out your financing. Keep in mind, you need to figure out:
Before looking at Airbnb vacation rental properties in Park City, do consider how much financing is available to you, in other words, known as ‘Mortgage’. A mortgage is a type of loan by your lender that is paid off monthly over 15-30 years fixed. Additionally, in the long run, it’s important not to settle for an interest rate that will cost you more than you should be paying.
When investing in an Airbnb vacation rental, first and foremost do thorough research on every neighborhood. Take note that each neighborhood has its distinct advantages. Consider that there is a possibility that some properties in Park City may lie within Soil Ordinance while others may not.
Apart from that, Airbnb laws vary in each city. Hence, know the law and its regulations in the city of your choice. And also, do take the time to compare prices in each neighborhood and set them according to your ideal budget.
If you are new to the process, when investing in a property, you’ll realize just how many people are involved in the buying and selling process. In traditional real estate, the buyer and seller have a representative that takes a certain percentage of the total transactions as their fee.
Though that’s not all, there are other professionals you’ll need to consider- inspectors, evaluators, title officers and the list just goes on. Therefore, it is important to have a central hub for your real estate transactions as it can be difficult to keep track of the people you have hired and their fees.
If you are not ready for the challenge in an investment property, you could always opt for a turnkey property especially if you live out of state. A Turnkey Property is fully renovated and is ready for immediate occupancy. However, you’ll be required to pay more upfront. That way, it minimizes time and effort in supervising repairs or upgrades needed.
Ideally, if you are new to the rental market, it may be tempting to jump with multi-unit family property. Or maybe even looking at properties that will help increase your revenue.
However, the best part of this journey is to always start small by maybe simply buying a less expensive condominium in Old Town or consider a single-family home away from the city center. That way, you could always expand your portfolio into a larger rental once you are comfortable. There’s no reason to rush when it comes to investment property.
Park City has become internationally known for international travelers, an ideal place for winter sporting events and the Sundance Film Festival. According to Utah Olympic Legacy Foundation, it has attracted over 1, 837,550 skiers in 2020.
And because of its popularity and high volume of visitors in the area, lodging occupancy in the year 2020 is as follows:
However, currently, the lodging occupancy rate stands at 50% (AirDNA). Therefore, rental properties in Park City can be a great investment. But of course, before diving in and looking for the right properties, consider a few things:
1. Location - the right location is the key to attracting prospective renters.
2. Price - research and compare prices offered by surrounding rental properties. Ask yourself, what Hotels and Airbnb properties are charging? Are you able to rent your Airbnb at a competitive rate while making a profit?
Park City Rental Requirements
First and foremost, a business license is required to maintain an Airbnb vacation rental in Park City. Apart from that, a yearly review of the property is essential including safety measures like smoke alarms and Co2 detectors. That way, it ensures the property is a safe environment.
Homeowner Association (HOA) Considerations
It is important that when investing in an Airbnb vacation rental, do thorough research as you may be faced with regulations on how properties can and can not be used. That way, your Airbnb will be compliant with their regulations.
In addition, you might want to also consider a 1031 exchange opportunity. The 1031 Exchange opportunity is a tax rule allowing property owners to exchange real estates (used for investments) with one another or at the time of exchange, no taxes are required at property acquired. To know more, check out: Selling Real Estate to Invest in New Property
Once you have invested in your Airbnb vacation rental, of course, the next step would be managing the property. Though, if you are out of state or have several properties, you can opt for a vacation rental management company. That way, they take care of day-to-day tasks and upkeep the needs of your rental property. Managing includes: