So you are probably wondering how much is a property manager in Winter Park Colorado because you just bought a place or you are thinking about buying a place and you need to know the numbers. Well i can tell you right now it is not a simple answer because there are so many variables involved in the whole process. If you want the short answer it is usually between 25 percent and 50 percent of your rental income if you are doing short term rentals like Airbnb or Vrbo. If you are doing long term rentals it is usually around 10 percent of the monthly rent but that is a totally different ball game.
I am going to break this down for you so you can understand where all the money goes and why it costs so much to manage a home in the mountains. You have to remember that Winter Park is not like managing a home in the suburbs of Denver or some city where the weather is nice all the time. We have snow and lots of it and that changes everything when it comes to property mangement costs.
The Short Term Rental Reality
If you are looking to rent your place out to skiiers and tourists then you are looking at short term rental management. This is the most popular option in Winter Park because everyone wants to come up here and ski Mary Jane or go to the resort. But this is also the most expensive type of management you can pay for.
Most companies in town are going to charge you a commission based on how much money the property makes. This is usually called the management fee. I have seen this fee range from as low as 15 percent to as high as 50 percent depending on who you hire and what they actually do for you.
You might see a company advertising a low rate like 15 or 20 percent but you have to be really careful with those numbers because usually that means they dont include anything. They might just handle the bookings and the calendar but then they charge you extra for every little thing.
Here is a basic idea of what the commission splits look like
| Management Type | Commission Rate | What is usually included |
|---|---|---|
| Full Service | 35% to 50% | Marketing, guest support, maintenance coordination, hot tub checks, inspections |
| Hybrid Model | 25% to 35% | Marketing and booking, but you pay for maintenance and other items seperate |
| Marketing Only | 15% to 20% | Just the listing on Airbnb and Vrbo, you do the rest |
You can see there is a huge difference in the price. If you go with a full service manager they are going to take nearly half of your money but they supposedly do everything for you so you dont have to lift a finger. But is it worth it. That is the question you have to ask yourself.
Why is it so expensive in Winter Park
You might be thinking that 40 percent sounds insane and honestly it is a lot of money. But managing a house in the rocky mountains is hard work. It is not just about checking people in and out.
First of all you have the snow. Snow removal is a huge deal here. If you have a driveway it needs to be plowed every time it snows more than a few inches. A property manager has to coordinate that. They have to make sure the walkways are shoveled so your guests dont slip and fall and sue you.
Then you have the hot tubs. Everyone who comes to Winter Park wants a hot tub. But hot tubs in the winter are a nightmare to maintain. They need to be checked after every guest to make sure the chemicals are balanced and the water is clean. If the heater breaks in the middle of winter the whole thing can freeze and crack and cost you thousands of dollars. A property manager charges a premium because they have to deal with these headaches.
Another reason it costs so much is just the labor market up here. It is hard to find good help in mountain towns. Housing is expensive for workers so companies have to pay their staff more money to keep them. This cost gets passed on to you as the owner.
Hidden fees you need to know about
The commission is just the start. If you sign a contract with a property manager you need to read the fine print because there are usually a ton of other fees that they dont tell you about upfront.
Maintenance markups
When something breaks in your house the property manager will call a plumber or an electrician or a handyman. But they usually dont just pass the bill to you. They often add a markup to the bill. So if the plumber charges 200 dollars the property manager might charge you 250 dollars. They say this is for their time to coordinate the repair but it adds up fast.
Linen fees
Some companies charge you a monthly fee for linens. This covers the sheets and towels and making sure they are clean and replaced when they get worn out. Other companies might charge the guest for this but sometimes it comes out of your pocket.
Onboarding fees
When you first sign up they might charge you an onboarding fee to get your house into their system. This can be anywhere from 300 to 1000 dollars. They use this money to take photos and write the listing description and set up the lockbox and things like that.
Credit card processing fees
When a guest books your house they pay with a credit card. The credit card company charges a fee of about 3 percent. Some property managers absorb this cost but many of them pass it on to you. So that is another 3 percent of your revenue gone before you even see it.
The Long Term Rental Option
If you decide you dont want to deal with the hassle of short term rentals you can rent your place out long term. This usually means a lease of 6 months or a year.
The fees for this are much lower. Usually a property manager will charge you 10 percent of the monthly rent. So if you rent your place for 3000 dollars a month the manager takes 300 dollars.
They will also usually charge a leasing fee. This is a one time fee they charge when they find a new tenant for you. It is usually equal to half of the first months rent or sometimes the full first months rent.
The good thing about long term rentals is that the income is consistent. You know exactly how much you are going to get every month. You dont have to worry about the slow season in May or October when nobody visits Winter Park.
But the downside is that you cant use the property yourself. If you want to come up for a ski weekend you cant because someone is living there. Also tenants can cause a lot of wear and tear on a house over a year.
Self Management as an Alternative
A lot of owners are starting to realize that paying a property manager 40 percent is just too much. With technology these days it is easier than ever to manage your property yourself.
You can list your house on Airbnb and Vrbo yourself. You can use smart locks to let guests in so you dont have to be there in person to hand over keys. You can use apps to communicate with guests.
The hardest part of self management is finding reliable cleaners and maintenance people. But if you can find a good team you can save a huge amount of money.
If you self manage you get to keep that 40 percent commission. Yes you have to do a bit more work but for many people it is worth it. You also have total control over who stays in your house and how it is looked after.
One of the things you can do is hire local companies to help with specific tasks. For example you can hire a company just to do the cleaning and linens. This is where companies like Winter Wagon can be helpful because they offer services that support owners who want to handle things on their own but need boots on the ground.
We know that handling the laundry and the cleaning is the biggest pain point. If you are in Denver you cant drive up to Winter Park every time a guest checks out just to wash the sheets. That is why having a reliable partner for the physical work is key.
What about the location within Winter Park
The cost of management can also depend on where exactly your property is located. If you are right at the base of the resort in the village it might be easier to manage because everything is close by. But if you are way out in the woods or up a steep dirt road it might cost more.
Some managers wont even take properties that are too hard to get to in the winter. If your driveway is a nightmare they might say no or they might charge you extra because their cleaners have a hard time getting there.
Properties in Fraser or Tabernash are a bit further away from the ski hill so they might not rent as much as a ski in ski out condo. This means your total revenue might be lower but the percentage the manager takes is usually the same.
Questions to ask a potential manager
If you do decide to hire a manager you need to grill them before you sign anything. Here are some things you should ask them.
- What is your commission rate and what exactly does it cover
- Do you charge a markup on maintenance
- How do you handle snow removal and who pays for it
- Do you have your own laundry facility or do you use a service
- How often do you inspect the property
- What is your policy on guest refunds
- Can I use my own house whenever I want
You need to get these answers in writing because sometimes they will tell you one thing and then the contract says something else.
The impact of regulations
Winter Park and the surrounding areas have been changing the rules for short term rentals lately. You need to make sure you know what the regulations are. There are license fees you have to pay to the town.
Some property managers will handle the licensing for you but others will make you do it yourself. The license fee is another cost you have to factor in. It is not cheap anymore to get a license to rent your home.
These regulations are meant to protect the locals and make sure there is enough housing for workers. But for owners it just means more paperwork and more fees.
Is it worth the cost
So is it worth paying someone 30 or 40 percent of your money to manage your house. It really depends on how much you value your time.
If you are busy with a full time job and kids and you dont want to be answering phone calls from guests at 10 pm because the wifi stopped working then maybe it is worth it. A good manager handles all the stress for you.
But if you want to maximize your profit and you dont mind doing a bit of work then self management is the way to go. You can make significantly more money if you do it yourself.
You have to look at the numbers. If your house brings in 50000 dollars a year in revenue. A manager taking 40 percent is taking 20000 dollars. That is a new car. That is a nice vacation. That is a lot of money to pay someone just to coordinate cleaning and answer emails.
The Winter Wagon connection
Since you are reading this on Winter Wagon i should mention that we understand the logistics of this town better than anyone. We drive these roads every day. We know how hard it is to get around in a snow storm.
Whether you need transportation for your guests or you need help with the heavy lifting of running a rental we are here to help. We have seen so many owners get burned by bad property management contracts. We want you to be successful with your investment.
If you have guests coming in from the airport we can pick them up. If you need linens rented we can help with that. We are all about making the logistics easier so you can focus on enjoying your mountain home.
Final thoughts on pricing
Don’t just look at the percentage. A manager charging 25 percent might actually cost you more than a manager charging 35 percent if the cheap one nickel and dimes you with fees.
You have to look at the total cost of ownership. Ask for a sample monthly statement from a current client. See what the actual bottom line looks like.
And remember that everything is negotiable. If you have a really nice luxury home that is going to bring in a ton of revenue you might be able to negotiate a lower commission rate. Managers want high end homes in their portfolio so use that as leverage.
It is a big decision and you shouldn’t rush into it. Talk to a few different companies. Talk to other owners in your neighborhood. See who they use and if they are happy.
At the end of the day your vacation home should be a source of joy not a source of stress. If managing it yourself is stressing you out then hire a manager. If paying the fees is stressing you out then manage it yourself. There is no right or wrong answer just what works for you.
The reality of guest expectations
One thing that drives up the cost of management is that guests expect perfection these days. Since Airbnb started everyone expects a hotel experience in a private home.
They want crisp white sheets. They want a spotless kitchen. They want instant responses to their messages. If you cant provide that level of service yourself you will get bad reviews. And bad reviews will kill your business faster than high fees.
A professional manager has systems in place to ensure quality. They have checklists for their cleaners. They have 24 7 support staff. That is what you are paying for. You are paying for the systems and the reliability.
But again systems cost money. And that is why the rates are so high in Winter Park. It takes a lot of resources to deliver a 5 star experience in a snow storm at 9000 feet elevation.
Seasonal fluctuations
You also have to be ready for the fact that you wont make money every month. In November and April the town is dead. calls it mud season for a reason.
Your expenses wont stop though. You still have to pay the mortgage and the hoa fees and the utilities. A property manager usually wont charge you a management fee if there is no revenue but you still have to cover the fixed costs.
Some managers offer a service where they check on your empty house once a week during the off season. They flush the toilets and check the heat to make sure nothing is frozen. This is usually a flat fee of maybe 50 or 100 dollars a visit. It is worth it for the peace of mind.
Conclusion
So how much is a property manager in Winter Park. It is expensive. But it is a cost of doing business in a high alpine environment.
Expect to pay around 30 to 40 percent for full service vacation rental management. Expect to pay 10 percent for long term management.
If those numbers scare you then look into self management and partnering with local service providers to fill in the gaps. There are plenty of options out there you just have to find the one that fits your budget and your lifestyle.
We hope this helps you understand the landscape a bit better. owning a home in the mountains is a dream for many people and we want to help you keep that dream alive without going broke on management fees.
Take your time do your research and don’t be afraid to ask the tough questions. Your bank account will thank you later. And hey if you need a ride or some help with your place give us a shout. We are always around.