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).
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