The Top 5 Tips On Buying a Vacation Rental Property In Park City, Utah

According to multiple market reports, Park City, Utah is currently the best place in regards to potential in the U.S. to purchase a ski vacation home. You may think Aspen or Jackson Hole hold the title but statistics are showing Park City and Deer Valley currently hold the highest potential on return for a vacation rental property. There are many incredible neighborhoods in Park City, Utah that offer unforgettable, year-round outdoor activities. This means year-round income potential for an investment property that you can enjoy yourself. It's no secret that real estate in Utah is an investment worth serious consideration, especially with the help and guidance from Railton North + Co. Your investment can be much more rewarding if you take these 5 tips on buying a vacation rental property in Park City into account. 

Where To Buy A Vacation Rental Property In Park City, Utah

1. Location Is Everything

Park City has a lot to offer and the area you choose will affect your investment in one way or another. Are you looking for the private golf club experience, do you want ski in access, do you want walking distance to the famously touristy Main Street, or do you prefer something more private and secluded? Whatever it is you are looking for from an investment standpoint or from an enjoyable experience, Park City has something for everyone no matter what time of year it is. The perfect area for you depends on what you want to be close to. It is important to remember that your future guests may want to be closer to various attractions than you would be. 

Skiing Park City, Utah

Of course the winter months and the perfect skiing conditions in Park City are what have made this luxury mountain town world famous. Finding a balance in winter/spring enjoyment as well as summer and fall can play a big role in a vacation rental property. It is important to maximize the income potential, which is why finding the right location is important. Acquiring the local knowledge will set you up for success. Sean Railton and Ali North have been enjoying everything Park City has to offer for over 40 years so they know the area and the market better than most. 

The closest ski areas in Park City are Park City Mountain Resort and Deer Valley. Both resorts offer a different experience and will affect the type of property and price point near each location. Deer Valley offers more ski-in ski out real estate where Park City offers more of a fun community village atmosphere surrounded by shops, bars and restaurants. Both of these resorts are easily accessible from anywhere in town. Park City will offer properties surrounding the base of the resort where Deer Valley has properties scattered throughout the resort offering a truly one-of-a-kind skiers experience

Golfing and Biking Park City, Utah

Park City is famous for world class skiing but out of towners may not know that Park City is one of the best places in Utah to visit in the warmer months for golfing, mountain biking, hiking, fishing and many other outdoor activities. The shopping and dining are exquisite year round but the outdoor activities in the warm months are an outdoor lover's paradise. Park City Utah currently boasts over 450 miles of incredible mountain biking trails for every experience level. In fact, the IMBA (international mountain biking association) has dubbed Park City as a GOLD-Level Ride Center. If you are looking for a tame, well-groomed trail or a steep and bumpy single track, you won't have to pedal far. If pedaling isn't your thing, the ski lifts give you and your bike easy access during the entire biking season.  

The golfing experience that Park City offers is also second to none. The Glenwild Golf Club and Spa is currently rated as the #1 course in Utah! Designed by Tom Fazio, this championship private course is something that demands attention and skill while surrounded by one of the most beautiful mountain scenes in the west. Park City is currently home to 7 public courses and 8 private courses, with more on the way, so there are quite a few options that will cater to either you or your guests when searching for a vacation rental property in Park City. 

Main Street Park City

Historic Main Street or Downtown Park City is truly unlike anywhere else in the world. This little mountain town is rich with history and an outdoor environment that will make anyone envious of your time spent here. To tourists it is the ultimate vacation getaway spot and to residents it is the ultimate outdoor paradise. Most vacation home owners prefer to offer a property that is close to the wonderful things that Park City has to offer. Main Street could be described as the heart of this town. Located directly between Park City Mountain Resort and Deer Valley, it is the gathering place for everyone who enjoys coming to Park City. The neighborhoods surrounding historic Main Street are known as Old Town where you will find some of the most unique and inviting homes in Utah. Downtown Park City is full of vibrant shops, delicious restaurants and fun bars and gathering spots. It is very close to skiing and many mountain bike trails actually end right at the top of Main Street which is very fun to experience in the summer. Needless to say, this area is very desirable for a vacation rental property and rental income records will prove the investment growth and project what we can look forward to int he future. 

Understanding The Requirements Of Buying A Vacation Rental Property In Park City

2. Come Up With A Vacation Rental Property Game Plan

After you've picked out the perfect location that will fit your needs you will want to look into any additional expenses that may be tied to the property. This is where a good agent with localized knowledge will come in handy. Rentals typically are taxed differently than primary residences and many communities in Park City come with an HOA or even owners fees for updates, maintenance and other costs to keep within community regulations. Purchasing a stand alone property means that you will be responsible for any maintenance or cleaning between guests so it is important to take into account the amount of attention you want your property to have. There are many reputable companies in Park City that handle all of this for the second home population and Railton North + Co have been working with the best for years. Condo fees and HOA fees can add up quickly so it is important to know the totals before committing to a budget. 

Tax rates for secondary homes are also different than the tax rates for a primary home. You also need to note that Utah state sales tax and Park City's property tax may be different than what you are currently used to. Utah state sales tax is currently at 4.85% and Park City property tax for a secondary residence is 1.13% compared to the primary residence tax of .55%. A property is considered a rental or investment property if it is rented out for more than 2 weeks a year. Vacation home owners pay double the tax rate so that the city can continue to make improvements. 

Managing A Vacation Rental In Park City, Utah

3. How To Manage And Maintain A Vacation Rental In Park City

Vacation rental properties are typically used by the owners less than 10% of the year. This of course means that owners aren't always aware of what is needed to keep the property in great shape or what could use a little extra attention. This is where a management company comes into play. There are many 5 star property management companies that service the Park City area and will take your investment into account. They understand that you have an investment property and you need to make sure items are taken care of within the interest of your business and budget. These management companies can take things as far as you would like. This includes handling the booking and marketing of your property or it could be as simple as cleaning the sheets and shoveling snow. Some properties will make you use an already decided upon service that is guaranteed to fit the standards of the community to avoid anything that may bring down the value of the neighbors property. Pricing can be a flat rate plus unexpected maintenance costs or it can be a percentage of the bookings. This depends on the company and what you are most comfortable with. 

4. Marketing A Vacation Rental Property in Park City

So you've found the perfect place, you've come up with a budget and a plan. You've figured out how you will maintain the property. Now it's time to talk about marketing your vacation rental in Park City. While this is typically pretty easy because Park City tends to market itself, there are a few tips to help you stay ahead of the game. Many platforms like Vacasa, VRBO, AirBnB all have fees that will place your property above others if you choose to spend the money. You can also do your own marketing if you feel confident in showcasing your property on places like Facebook Marketplace or sharing with friends and family. The idea here is for the best return on your investment so organic marketing is very beneficial to your end return. Things that will help with organic marketing are choosing a location that is established and competitive offering bonuses like a pool or other amenities. Location and ease of access is another big selling point. Also keep in mind summer marketing strategies are going to be different than winter marketing strategies. Don't get overwhelmed because this will all become normal after just one full season but you will have an advantage going into it with a heads up. 

5. Find An Agent Who Understands The Vacation Rental Property Market In Park City 

The last tip and possibly the most important one is to find a Realtor that understands the local market and has a head for business investments or opportunity. Most agents want to buy or sell and move onto the next property where the team at Railton North + Co would rather build a long term commitment that will benefit the investor in the long run. Everyone at Homes Park City is very familiar with investing in income producing property and they know what to look for, what to ask and what to expect in every step of the journey. Pair this education and experience with localized knowledge and you will be confident in your decision. This step will save you time and money while giving you the tools to make a good decision without hesitation. 

If you are interested in strengthening your future returns, reach out to the team at Homes Park City to gain an edge in the market.