Owning a Vacation Rental Property.

[skegpro]

Who owns one?
Is it a good idea or too much of a PIA.

 

[Couch]

Where to? Canada or outside? Renting on your own or through a rental pool? Self managed or property manager?
Have one we rent through VRBO which works well. Have a good person to do the cleaning and contract to service hot tub as required.
If you use a property manager they will chew through a lot of your profit.

So far its more profitable than a long term rental plus we get to use it as we want.

 

[pano-dude]

More short term rentals popping up all the time in Invermere. Not great if you live beside one of them like my buddy. Guests show with 4 vehicles and take up all the parking on the street, then feel its Ok to sit on the deck yapping until 2am.

 

[Teth-Air]

Who owns one?
Is it a good idea or too much of a PIA.

It depends on your goals, time and money. I would say yes, if you have the time to use it and can afford it. I have had a place for my trailer for 20 years and it is 70-80 minutes North of Calgary. Great place for the family to play and grow up. Now the kids are gone it is up for sale and I bought a place in Nelson BC. This is where I will eventually retire but for now it is a vacation home. BC is a lot farther and requires home maintenance but I can ride my sled out of my garage and up the mountain or go boating 5 minutes away. The way I look at it is that I used to drive to Revy anyway so might as well have a year round place. Still have the acreage for sale if any one is interested:

https://www.kijiji.ca/v-land-for-sale/calgary/recreational-property-private-campground/1353108864

 

[Bnorth]

Been looking at a couple of places on ski hills and find the monthly strata/maint fees are very high and they are also stuck in the rental pool so not sure if the return on investment is there. I have some more homework to do.

 

[eclipse1966]

I contemplated this question too Dustin. Couple years ago we put an offer on a semi water cabin/property on Blind Bay road but didn't go thru as owners had a subject attached that they found a replacement bigger place and didn't. Anyway, my buddy bought a 850 sq ft cabin right on the Shuswap Lake. In four years he has replaced his roof, most of deck, railing, plumbing, doors and windows to name a few. So, I am kind of happy that we did not get the cabin. Cant remember what he paid but it was close to 1/2 a million bucks. On the other hand, for $5000 per year we have our RV on a lake front pad on the Shuswap. I built a deck, roof and relax. Price includes power, we have a full size fridge and a buoy for our boat steps away. No property taxes/maintenance to worry about going forward. However, I have my sights on something in Mexico down the road

 

[summit889]

I have a few properties. In Canada and Mexico. Honestly, I think you have to look at it from an investment perspective and view rental income as a bonus. If you’re relying on rental income to make it work, don’t do it.

 

[freeflorider]

I contemplated this question too Dustin. Couple years ago we put an offer on a semi water cabin/property on Blind Bay road but didn't go thru as owners had a subject attached that they found a replacement bigger place and didn't. Anyway, my buddy bought a 850 sq ft cabin right on the Shuswap Lake. In four years he has replaced his roof, most of deck, railing, plumbing, doors and windows to name a few. So, I am kind of happy that we did not get the cabin. Cant remember what he paid but it was close to 1/2 a million bucks. On the other hand, for $5000 per year we have our RV on a lake front pad on the Shuswap. I built a deck, roof and relax. Price includes power, we have a full size fridge and a buoy for our boat steps away. No property taxes/maintenance to worry about going forward. However, I have my sights on something in Mexico down the road

I thought you were a Costa Rica guy now lol. Anything you can enjoy and walk away from is ok with me. Pay up front or on the backend. I like the idea of your Shuswap deal. pay, sit n chill and then move on if you like. Nothing like a vacation home where you spen most of the year fixing stuff that failed over the winter.

 

[skegpro]

Where to? Canada or outside? Renting on your own or through a rental pool? Self managed or property manager?
Have one we rent through VRBO which works well. Have a good person to do the cleaning and contract to service hot tub as required.
If you use a property manager they will chew through a lot of your profit.

So far its more profitable than a long term rental plus we get to use it as we want.

I was thinking Revelstoke or Sicamous,
But really would be open to any sled friendly destination. Ie Nelson,golden?

I could only use it in the winter months due to work. So I would like to maybe try and rent it out to try and offset some of the costs of ownership.

Thinking condo or townhouse for minimum upkeep. Although a garage would be nice to park sleds.

 

[skegpro]

More short term rentals popping up all the time in Invermere. Not great if you live beside one of them like my buddy. Guests show with 4 vehicles and take up all the parking on the street, then feel its Ok to sit on the deck yapping until 2am.

They must make money.

I was gonna book this one in golden untill I found out it was in USD.

 

[skegpro]

It depends on your goals, time and money. I would say yes, if you have the time to use it and can afford it. I have had a place for my trailer for 20 years and it is 70-80 minutes North of Calgary. Great place for the family to play and grow up. Now the kids are gone it is up for sale and I bought a place in Nelson BC. This is where I will eventually retire but for now it is a vacation home. BC is a lot farther and requires home maintenance but I can ride my sled out of my garage and up the mountain or go boating 5 minutes away. The way I look at it is that I used to drive to Revy anyway so might as well have a year round place. Still have the acreage for sale if any one is interested:

https://www.kijiji.ca/v-land-for-sale/calgary/recreational-property-private-campground/1353108864

I definitely have been drawn to Nelson.
The real estate seems more reasonable than Revelstoke and the snowpack seems similar.

 

[skegpro]

Been looking at a couple of places on ski hills and find the monthly strata/maint fees are very high and they are also stuck in the rental pool so not sure if the return on investment is there. I have some more homework to do.

Yeah I was a fair way into a deal on a place at kicking horse and ended up pulling the plug cause it had to be in the rental pool and the extra fees were steep.

It appears to be different now since the hill sold, see all sorts of properties on VRBO.

Rental rates followed the USD and have gone up significantly in CAD funds.

 

[skegpro]

I contemplated this question too Dustin. Couple years ago we put an offer on a semi water cabin/property on Blind Bay road but didn't go thru as owners had a subject attached that they found a replacement bigger place and didn't. Anyway, my buddy bought a 850 sq ft cabin right on the Shuswap Lake. In four years he has replaced his roof, most of deck, railing, plumbing, doors and windows to name a few. So, I am kind of happy that we did not get the cabin. Cant remember what he paid but it was close to 1/2 a million bucks. On the other hand, for $5000 per year we have our RV on a lake front pad on the Shuswap. I built a deck, roof and relax. Price includes power, we have a full size fridge and a buoy for our boat steps away. No property taxes/maintenance to worry about going forward. However, I have my sights on something in Mexico down the road

Yes the maintenance part is definitely a deterrent.

 

[skegpro]

I have a few properties. In Canada and Mexico. Honestly, I think you have to look at it from an investment perspective and view rental income as a bonus. If you’re relying on rental income to make it work, don’t do it.

Well put.
Not 100% sure I would want to put it in a rental pool. Might go condo.just so it is semi monitored when I am not there.

Been watching for condos in Revelstoke, nothing on the market really.

 

[pano-dude]

Well put.
Not 100% sure I would want to put it in a rental pool. Might go condo.just so it is semi monitored when I am not there.

Been watching for condos in Revelstoke, nothing on the market really.

Probably 100 condos for sale in the Invermere/ Radium area.

 

[eclipse1966]

although CR intrigues me and have been there (never seen it rain so hard!) I would lean towards Mexico just for the simple reason we can get there on a direct flight from Kelowna. I travel for work a fair bit so I am getting a bit "lazy" to travel for my personal holidays. 4.5 - 5 hrs and we are in PV which is very attractive for me. As for Shuswap deal, yes it is a good one. We give our notice to either leave or stay in Nov and pay for the season end of April. No long term commitments other than yearly and can leave anytime.

I thought you were a Costa Rica guy now lol. Anything you can enjoy and walk away from is ok with me. Pay up front or on the backend. I like the idea of your Shuswap deal. pay, sit n chill and then move on if you like. Nothing like a vacation home where you spen most of the year fixing stuff that failed over the winter.

 

[Couch]

I was thinking Revelstoke or Sicamous,
But really would be open to any sled friendly destination. Ie Nelson,golden?

I could only use it in the winter months due to work. So I would like to maybe try and rent it out to try and offset some of the costs of ownership.

Thinking condo or townhouse for minimum upkeep. Although a garage would be nice to park sleds.

If you want to use it in the winter then whats the rental market like for the rest of the year? I don't use it in the summer which is high season.
Maintenance costs cannot be overlooked especially if you do not / cannot do your own repairs.

We run ours through our business so it shows as an asset on the books plus we can properly expense costs (have to properly account for income and hst) too.
Short term rental may face so push back in regulated areas in coming years as govt want to start collecring their share (taxes & fees) plus they're getting heat from hotel sector.

Look at it purely from $$$$ view and then make your decision. My guess is that most rental pool owners do not get a great roi - property developer / property management company makes the boat most of thier investment.

 

[deaner]

I definitely have been drawn to Nelson.
The real estate seems more reasonable than Revelstoke and the snowpack seems similar.

Great sledding around Nelson but no where near the snow that Revy gets. I think they do get quite a bit of tourist activity though so rental throughout the summer probably wouldnt be an issue. If I were looking at this type of thing that is what I would base it on......where are you most likely to be able to rent it out as much as you need to to make it worth while.

 

[Teth-Air]

I definitely have been drawn to Nelson.
The real estate seems more reasonable than Revelstoke and the snowpack seems similar.

We find snow quality and depth similar to Revy but more places to ride than riders to ride it. That can be a wonderful thing but if you don't bring your own group you might be riding alone. In Revy you can just show up and hook up with someone. In 10 days or riding last December near Nelson we ran into 2 other riders.

 

[skegpro]

We find snow quality and depth similar to Revy but more places to ride than riders to ride it. That can be a wonderful thing but if you don't bring your own group you might be riding alone. In Revy you can just show up and hook up with someone. In 10 days or riding last December near Nelson we ran into 2 other riders.

That sounds nice.

Do they still hate people from Alberta in Nelson?