By Ulrich,

Isn’t it interesting how some towns seem to take on the personality of their founding fathers? Steamboat Springs is just such a place. Within 5 years of the Crawford family settling here they were joined by other hardy families who settled the Yampa Valley and set the tone of its character for decades to come.

The Ranching way of life brings certain traits that are unique to its lifestyle. Resilience, Independence, Toughness, Simplicity, Innovation; Ranchers must adapt to a variety of challenges such as weather, equipment, crop conditions, diseases, and market conditions. It is easy to place a parallel on farming and the ski industry; after all aren’t ski areas simply snow ranchers?

Just as the Ranchers had to face a myriad of challenges so did Steamboat as a community. Many of these challenges were championed by innovation and our independent spirit. Being so isolated we had to figure out how to facilitate an easier way to attract our tourists, hence the Yampa Valley Regional Airport. We were the community that invented the airline subsidy program as well as kids ski free.

The Steamboat Economy has reinvented itself on several occasions from agriculture to coal mining to health (the hot springs were a huge draw from the handicapped to the rich and famous from 1909, when passenger trains arrive, to 1939 when the famous cabin hotel burned down), various incantations of tourism and even construction.

Even during our most successful economic days we have remained grounded and enjoy living this simple uncomplicated life. Talk to some locals and see how many leave their homes unlocked and the keys in their cars. As you stroll up and down Lincoln Avenue notice the lack of suits and ties. There used to be a saying that only out of town salesmen and out of town attorneys wore suits and ties and we had no use for either. How many other places in the world can a CEO of a major corporation and a cab driver enjoy each other’s company as without pretences?  

Of course the most important traits that are so attractive and inviting are those of collaboration and welcoming. The early settlers knew all too well that the only way to survive was to help your neighbor, because sure as shootin you would someday need their help. The new families were welcomed and celebrated and assisted to insure their success. These traits are still present and what separates Routt County from so many other places.

It is incumbent upon us who have wondered into this special place and embraced its heritage to foster and maintain this personality for future generations to benefit from.

Q.  Hi Susana- we are looking for a condo in Steamboat. Do you have information on the average nightly/weekly/monthly rental rate for a unit as described above? If not, can you direct me to a good source for this information? This will help us evaluate the opportunity. Thanks.

A. Great question. Unfortunately, there is no single place to go to, to get that information, except on a condo by condo basis.  Here’s why:

• Every development has its own rates, and this largely depends on the condo’s location (how close it is to the base of the ski area, for example, or downtown) and amenities (whether it has a pool, shuttle service to the ski mountain or downtown, hot tubs, tennis courts, etc.).
• Then even within a development there will be different rates depending on the season and even the night. The highest rates are typically the week between Christmas and New Years, during the ski season in general with peaks during President’s holiday and school spring breaks, etc. The shoulder seasons of spring, after the ski area closes, and the fall, before the ski area opens, command lower rates.
• It is fairly easy to get a general idea of what the annual rental figures will be, by asking for rental history figures from the past, for any of the condos on the market. I can help you get these figures. They often are in the form of an Income and Expense sheet given to the owners by the management company.
• Another thing that affects the bottom line is how much the owners have used the condo (and thus had it unavailable for rental), as well as when the owners used it (personally using it during the highest-income holiday week, for example, will have a greater impact on your annual income than using it during the off season). Which is not to say that you shouldn’t use it during that week – after all, one of the pleasures of having your own vacation condo is being able to use it when you want to – but just that sometimes the owner’s use is, and other times isn’t, included in the income and expense reports which we have access to.

Nevertheless, I can certainly help you analyze the figures and the properties. 

A couple of other things to keep in mind are:

• Regardless of the rate or the condominium development, one thing you can count on is that in Steamboat, to be conservative, it is typical to figure that 50% of the rate will stay with the management company and the other 50% will go to you.
• Your Home Owner’s Association (HOA) fees are independant of your management fees, and these can vary greatly between condominium projects.
• If you are interested in getting financing to help with your purchase, it’s important to know that financing for condominiums in developments that allow nightly rentals (even if you’re renting your individual unit or not), is quite limited. In addition to meeting the usual requirements demanded by lenders these days (good credit score and income), you should anticipate needing to bring 25-35% of the purchase price with you to the closing table, and borrowing the rest.

Hope this helps!