What to Consider When Buying a Rental Property in Big Sky, Montana

Buying a Rental Property

There are many potential advantages to buying a property as a short- or long-term rental.

Big Sky Sotheby’s agent Talley Lancey has experience representing buyers through this process and says it can appeal to both residents and vacationers alike.

What type of buyer should consider purchasing a property to use as a rental?
Lancey says that, in general, there are two main types of buyers who show interest in purchasing a property to use as a rental. First, those who would like to retire in Big Sky and are interested in purchasing a home when the market is in their favor; and second, those who vacation frequently in Big Sky and would like to have a place to stay regularly, while offsetting some of their vacationing costs. In addition, those with vacation homes in other places who are looking to invest in Big Sky may qualify for what’s called a 1031 exchange, which essentially allows an owner to trade investment assets in a way that greatly reduces or eliminates taxes on the property.

What are some of the concerns people have when they are considering purchasing a rental?
The primary concern of any client who is looking to own—and ultimately rent out—a property in another town is how to maintain the property from afar. “They would worry about ‘what happens if something goes wrong?’” says Lancey, adding, “It’s really a very valid concern.” Fortunately, Lancey says, there are many competent and trustworthy local property managers available to watch over properties for owners, and to step in should something need repair. Lancey says her advice would be to interview several people before choosing a property manager that’s right for you.

What properties make the most sense as rentals?
According to Lancey, any property can make a great rental property; the only thing she says she would advise buyers to look for is a home that doesn’t need a ton of maintenance, which will cut into any income an owner makes on the property.

Is it worth it?
Although the income may not be enormous, purchasing a property to use as a rental can still be a smart investment for a buyer who is planning to spend time in Big Sky regularly, now or in the future. Tory Cyr, a Big Sky resident who is also an agent, recently purchased a condo that she plans to live in and occasionally rent out. She says the hope is that the property will “pay for itself” as far as dues, water, snow removal and the like. Cyr says she expects she will be able to live in the condo at least half the year, and that renting it out during peak times has the potential to easily account for the passive income she hopes to earn.

Contact Tallie Lancey

 

Suggested Rental Properties in Big Sky, Montana

Powder Ridge, 29 Ogala, http://www.bigskysir.com/listings/details/29-oglala-powder-ridge-29-big-sky-mt/208069/6739372 – (already established with great rental income).

Mountain Lake Brand New Development, http://www.bigskysir.com/listings/details/2-summit-view-rd-big-sky-mt/198875/6739372 – (great pre-build pricing).

Spanish Peaks Mountain Club Cabin 8, http://www.bigskysir.com/listings/details/39-homestead-cabin-fork-big-sky-mt/207097/6739372 – (comes with membership and amazing rental income).

 

Related links

4 Tips to a Successful Real Estate Transaction
http://blog.bigskysir.com/2015/05/25/4-tips-to-a-successful-real-estate-transaction/

6 Questions and Answers To Help You Understand The Big Sky Resort Tax
http://blog.bigskysir.com/2015/04/08/big-sky-resort-tax/

 

Hunting Under the Big Sky

blog_huntingBig game season is upon us in Montana, and with it comes the anticipation of trailing that trophy deer or elk in the pristine Montana wilderness. The area surrounding Big Sky offers amazing opportunities for hunters to practice their sport in some of Montana’s most stunning terrain, including the Lee Metcalf Wilderness Area and the Gallatin National Forest.

Hunting Season Dates
This year, archery season begins September 5, 2015 – October 18, 2015 , depending on the animal, followed closely by rifle season, which opens September 15 for big game animals in most regions. If you were lucky enough to draw a moose or Bighorn sheep tag, those seasons begin mid-September as well. Check Montana Fish, Wildlife and Parks website for exact dates and current hunting information.


Tips for Safe Hunting in Big Sky Country
Follow these tips to ensure a safe and successful hunting season:

• Never hunt alone: Stick with a group or a partner, or if you must go alone, make sure somebody knows your plan and when they should expect you to return.

• Always carry bear spray and a first aid kit.

• Use firearms responsibly: Don’t point firearms unless you plan to shoot, avoid difficult terrain while carrying a loaded rifle, and always look beyond your target to see what else might be in the line of fire. Keep all firearms unloaded when not in use, and store guns and ammo separately. For more firearm safety tips, visit this link: http://www.ihea.com/news-and-events/news/ihea-news-releases/141-firearm-safety-rules

• Stay sober: For your sake and others’ avoid alcohol and drugs while you are out in the field. Stay alert and in control, and save the cold beer for when your sitting around the campfire.

• Shape up: Get regular exercise in the off season so that when fall comes around you will be up for hiking long distances. Consider physical training that will help you to prepare for shooting in a variety of positions.

• Check the weather: Make sure your gear and clothing is appropriate to the time of year and your destination. Weather conditions in Montana change quickly, so be sure to bring warmer or weather resistant options as necessary.

• Check your equipment: Keep rifles and equipment maintained and in good condition, and check out everything before you go — same goes for camping and hiking gear.

• Protect man’s best friend: Dogs traveling with your hunting party should wear a hunter orange vest or bandanna for visibility.

• Take it easy: To make for a safer trip, travel at a comfortable pace and stop when necessary. Mistakes and accidents will be less likely if you and your companions maintain a slow and steady approach.

These combined with preparation and common sense will ensure you have a safe and successful hunting season. For guided hunting trips in the Big Sky area, check out these experienced outfitters, who provide anything from shorter, lodge-based trips to more intensive excursions into the backcountry:

http://www.montanahuntingcompany.com

http://www.huntbigsky.com

http://www.sagepeakhunting.com