To Rent or Not to Rent? That is the Question.

To Rent or Not to Rent? That is the Question.

Posted by Brandi Hammon on Tuesday, June 19th, 2018 at 12:45pm.

property management for vacation rental properties

Four Things to Consider When Renting Out Your Casa 

By: Brandi Hammon

Second home owners often ask about renting their mountain homes. With the advent of AirBNB and the cost of maintaining second homes, it is definitely worth considering. Renting your home isn't for everyone, here are four things to consider before making a decision.

Zoning

Is your community zoned for vacation rentals? By statue, many communities allow long term rentals (often defined as more than 30 days). In contrast, vacation rentals are usually under 30 days and most city and county ordinances don't specify if short-term rentals are allowed. Counties will contend this implies they are not allowed. Park City, Midway, Washington, and other counties passed bans regarding vacation rentals in certain zones. Weber County has none, but the renters of non-zoned vacation properties are advised to tread lightly. Properties located outside of rental areas need to be extremely conscientious of neighbors, number of guests, and the type of guests. 

Taxes

There are several things to consider here. First, second homes are taxed at the full assessed rate vs. primary residences receive a 45% discount in Weber County. Note that homes with a long term renter qualify as a primary residence. Vacation rentals are liable for taxes, both sales tax and transient room tax. The Utah Tax Commission has been reaching out to ensure those taxes are paid. Income should also be reported on your taxes. This can move a second home to an investment property and qualify for other benefits and write-offs associated with investment properties. Check with a tax advisor and see how this can benefit you as there are complex details to navigate based on personal usage vs. rentals. The new tax plan omits interest deductions for newly purchased second homes, so transitioning to an investment may prove beneficial.

Management

There are two options to renting your home: self management or using a vacation rental management company. If you're local to the property, self management might be the answer. However, rental companies offer many perks, with the biggest value being your time. Rental companies charge between 20-50% based on the property, marketing, and services offered. The real value is managing the reservations, cleaning the property, handling after hours calls, maintaining the home, and protecting you against fraud. An absentee owner can't personally inspect the home after renters leave. Using a management company will help protect the property and allow you to enjoy it.

Accessibility

One of the benefits of owning a second home is the ability to drop in and have your things already there. The freedom of visiting at will is limited, but by blocking times you frequently use the property, you can be sure to maintain access. If you end up not coming, just open those days back up. Create a locked closet for your personal items to maintain the convenience of an easy getaway.

Questions?

Mountain Luxury Lodging is here to help. 
Call or text 801-745-3194 or email Jill@mountainluxury.com

 

Interested in owning a vacation rental property? Check out what's currently on the market!

Price, High to Low
71 Properties Found.
Page 1 of 6

5932 E Big Horn Pkwy 129

$995,000

Eden, UT
7 Bed | 6 Bath | 6735 ft2 | 0.08 Acres
Residential

3408 N Big Piney Dr 91

$989,000

Eden, UT
8 Bed | 7 Bath | 6916 ft2 | 0.08 Acres
Residential

Photo of Listing #1519500

4384 N Sunrise Dr E 48

$875,000

Eden, UT
7 Bed | 6 Bath | 4900 ft2 | 0.08 Acres
Residential

5823 E Elkhorn Dr 25

$865,000

Eden, UT
6 Bed | 5 Bath | 4418 ft2 | 0.08 Acres
Residential

6370 E 820 S 12

$862,120

Huntsville, UT
4 Bed | 4 Bath | 3590 ft2 | 0.04 Acres
Residential

Photo of Listing #1504855

5942 E Big Horn Pkwy 127

$799,000

Eden, UT
7 Bed | 6 Bath | 5748 ft2 | 0.08 Acres
Residential

5948 E Big Horn Pkwy 126

$799,000

Eden, UT
6 Bed | 5 Bath | 5130 ft2 | 0.08 Acres
Residential

Photo of Listing #1431195

3428 N Big Piney Dr 82

$790,000

Eden, UT
8 Bed | 5 Bath | 5151 ft2 | 0.08 Acres
Residential

4352 N Sunrise Dr E 51

$779,000

Eden, UT
4 Bed | 4 Bath | 3852 ft2 | 0.08 Acres
Residential

Photo of Listing #1494837

3423 N Big Piney Dr 99

$749,000

Eden, UT
6 Bed | 4 Bath | 4741 ft2 | 0.08 Acres
Residential

5265 E Moose Hollow Dr 704

$710,000

Eden, UT
4 Bed | 4 Bath | 3343 ft2 | 0.08 Acres
Residential

Photo of Listing #1531584

5219 E Moose Hollow Dr 304

$710,000

Eden, UT
4 Bed | 4 Bath | 3343 ft2 | 0.08 Acres
Residential

 

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