AIRBNB, VRBO, THE NEW MAMMOTH RENTAL PARADIGM?

Wouldn't it be nice to have a condo in Mammoth. A winter retreat for skiing; and a summer refuge for biking, fishing and hiking.  And wouldn't it be great if other people would help you pay for it.

"Will my rents cover the cost of ownership?" I've heard that a lot selling Mammoth real estate for more than 36 years. Until recently, I was quick to caution that rentals would help defray some of the costs of ownership but would rarely, and only in cash transactions, cover all expenses.

The reason was simple, traditional condo reservation companies charge 35% to over 50% of the gross rental receipts. These charges include towel, linen and maid services, advertising, rental bookings and key pickup. It's easy to see how $24,000 -$50,000 in gross receipts could be whittled down to as little as $12,000 -$25,000 by fees.

With the growth of the internet that calculus has has tipped in condo owners favor.  Popular sites like Airbnb charge owners a modest 6% processing fee. Vacation Rentals By Owner (VRBO) levys a once per year listing fee starting at $349. Renters pay the cleaning and taxes. Local representatives—required by the Town—will shoot photos, post property listings, maintain calendars and troubleshoot problems for as little as 10% of rental revenue.

Today the answer to the rental question is yes, you should be able to cover your expenses, and depending on the size of your mortgage, put  money in your pocket.

Years ago my company did a rental computation and concluded that the average condo owner could expect between 85 and 110 nights of bookings in an average snow year provided owners made their properties available on key holidays. With today's internet marketing sites, and with owners committed to maximizing their properties rental potential, both rental nights and rental revenue have climbed.