Whether you’re a skier who loves the mountain slopes of Utah, a lover of the beaches of Southern California, or a potential retiree seeking to escape the snow-laden Northeast for the wide-open, sunny lands of Arizona, there are homes available to meet a wide range of budgets. The biggest decision a potential second homeowner must make is whether they are going to solely own their vacation home or turn it into a vacation rental. Here are the advantages and disadvantages to both options:

Investing in vacation rentals

• Pros:
  • A good vacation rental property generally provides a healthy rental revenue which could potentially cover mortgage payments while also generating healthy additional profit.
  • Using an online short-term rental service like Airbnb makes it convenient to manage your rental property. Their website interface makes pricing, marketing, and communication with potential guests quite straightforward and easy. Airbnb will also oversee the billing process for you.
  • You may qualify for federal tax breaks and deductions related to your investment property. Everything from professional fees or commissions – including property management services- to cleaning and maintenance are potential tax write-offs.
• Cons:
  • Vacation rentals can be costly to manage, both in terms of time and money. These properties may require seasonal upkeep and special maintenance considerations. You may even incur costs to maintain or monitor the property even when it’s not actively being utilized.
  • Vacation rental properties are particularly sensitive to seasonal fluctuations and economic downturns, which could leave you financially exposed if you suffer a lack of booking revenue.
  • Many states and cities are cracking down on short-term rental services. In California, for example, the fight has been primarily local, reaching a fever pitch in the San Francisco Bay Area. Increasingly state and local municipalities are seeking to reign in short-term vacation rentals, which could put a damper on potential revenue from these properties.
  • You may experience higher renovation and repair costs on a short-term rental. Most travelers expect the latest appliances and furnishings, so you will have to update every few years. Unfortunately, short-term renters are less likely to report any necessary repairs and guests are far less likely to treat the property with respect since there’s no sense of ownership or obligation.

Owning a vacation home

• Pros:
  • Long-term profits: While assets fluctuate in value in the short term, vacation properties are more likely to retain their value and appreciate because they are located in popular areas with a geographically limited supply.
  • Familiarity: Returning to the same place time and after time can be comforting as you become familiar and comfortable with the location. It allows you the freedom to be yourself and the opportunity to expand long-term friendships with residents.
  • Convenience: The ability to conveniently store items that are used exclusively at the second home simplifies travel and packing.
  • Retirement head starts: Though we may love where we work and live, every place has its drawbacks. A common goal of retirement is to have a place to retreat for the times of the year we dislike the most at our main residence. Locating and buying a second home prior to retirement enables you to experience the benefits of a refuge before actual retirement, a time to correct and amend your plans if the reality is different than the dream.
• Cons:
  • Initial purchase costs: Most people have higher expectations for a property that they intend to own, rather than to rent. These expectations can translate into high prices.
  • Home maintenance: As the homeowner, you are responsible for all home maintenance work.
  • Travel time: A second home will be located hours from your primary residence, requiring either long auto trips or airline flights.
  • Inflexibility: If you are paying a significant amount of money each month for a second home, you may feel that you need to constantly visit the property to justify your investment.

Whatever you chose to go with, you can be sure that your favorite Windermere agent is there to help you every step of the way.

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If you’re familiar with Park City, you know there are two things this winter town has in spades: skiing, and luxury lifestyle (wining, dining and leisure). While skiing is a great source of recreation, don’t be fooled into thinking that’s the only thing you can do while in town. Take a look at this list to get inspiration for your next don’t-feel-like-hitting-the-slopes day.

Photo courtesy of The Spur

Check Out our Favorite Dining Destinations

In Park City you certainly have your pick of gastronomie. Back in December, though, we heard from some our fantastic Park City agents about their all-time favorite restaurants and pubs in and around the city. Some of their choices included Boneyard & Wine Dive, High West Distillery, The Spur Bar & Grill, No Name Saloon & Grill, and Fletcher’s. You can take a closer look at their very thorough reviews here.

Go Sledding at Woodward Park City

Woodward is one of the newest additions to the area, and you really can’t miss it as you drive into town. We covered the absolute wealth of activities and recreation they offer in a recent blog post, but we really do have to recommend the sledding.

Park City Magazine describes Woodward as the following:

“This brand-new action sports facility is what dreams are made of for kids and kids at heart. There are skate ramps, trampolines, a spring floor, and pump tracks inside; outside, you’ll find progression parks, freestyle zones, tubing, BMX jumps, parkour, and more. Daily access passes and monthly memberships are available.”

Photo Courtesy of Park City Powder Cats

Park City Powder Cats

We recognize that this is kind of ski-related, but the “how” of getting there is an experience all of its own. Park City Powder Cats eliminates the lift lines, and the “overused” conditions of most commercial resort areas by taking you far, far off the beaten path in a machine called a “snowcat.” The ride up for this day-long excursion is amazing, and the powder you find that tops of the untouched mountains is sublime.

They do add this caveat, however:

“For safety reasons, guests at PC Powder Cats must be advanced or expert skiers and riders. That means you can ride an ungroomed black diamond run in any conditions (powder, slush, ice, crust, etc.). We do not have groomed terrain.”

Image Courtesy of Alpine Distilling

Make Your Own Gin

This two-hour long experience is one that you’ll never forget. Extend your stay with a complimentary 30-minute tour of its production facilities in Silver Creek, and if you’d like to do a tasting, it’s a dainty $15 extra.

According to the website, the $150 personal distilling package includes the following:

“An Alpine Distilling employee will help you will craft your own Gin from botanicals sourced from around the world and using a gluten-free, 100% Corn base. You will leave with your own custom spirit in one 375ml bottle. Price is for one distilling station. Reservations required.”

Climb Up a Frozen Waterfall

This is exactly what TLC warned us not to do in their 1994 hit single, but in Park City it’s worth a little rule breaking to enjoy this special experience. And the best part? You don’t have to be a pro – or even an intermediate climber. All novices are welcome to learn “front-pointing, flat-footing, effective tool swinging, various ice tool placements, efficient movement, maximization of resting opportunities, how to “read” ice, and ways to minimize risk.”

You can register for this activity online through Utah Mountain Adventures, and this course is “typically held on the lower curtains of the world-class Stairway to Heaven formation in Provo Canyon, easily accessible by a 20-minute hike.”

To see more activities that you can take advantage of, right in Park City, check out this awesome article that we drew some of our inspiration from.

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