In general, real estate is a good investment, but mountain mansions or cabins can be particularly profitable. The popularity of nature escapes has grown rapidly as more and more people are choosing to get out of populated cities. So, if you plan to invest in a mountain mansion, there’s a good chance you’ll get an impressive ROI in the long term.
On the fence? In this post, we tackle the pros and cons so you can make an informed choice. Plus, we break down the common mountain mansion management fees as it’s non-negotiable to work with one if you do decide to buy a mountain mansion.
What Are the Pros of Owning a Mountain Mansion or Cabin?
Below, we’ve put together a few reasons why mountain mansions make great investments.
#1. You Have a Vacation Home
As a mountain mansion owner, you can choose to rent it out for only a few months a year. In that way, you’ll have your very own vacation home. Since you’ll no longer have to rent or stay at another accommodation, that means you can save a significant amount of money. You will also be more comfortable and feel more “at home” during your getaway.
#2. Vacation Homes Appreciate Faster
Vacation homes, particularly ones in popular areas, appreciate in value faster than non-vacation homes. In fact, a study found that sales prices for properties in seasonal towns outpaced nonseasonal towns. In seasonal towns, home prices rose by 20% while in non-seasonal towns, home prices rose by only 13%.
#3. Year-Round Demand for Mountain Rentals
In the 2021 Vrbo Trend Report, it was discovered that the demand for cabins increased by about 25%, while the demand for chalets increased by about 20%. Post-pandemic, cabins continue to be some of the most in-demand properties for people who want to get away from urban life.
#4. Potential to Charge High Rates
Mountain mansions are hard to find, so if people spot your property, they’ll be willing to pay to stay for even a day or two, whatever the price tag. You or your property management company could even incorporate luxury amenities to raise its value. For example, you could add a fire pit with outdoor selling – not only will this allow you to raise the rent, but also give your guests a better way to take in the views.
#5. Let Nature Speak For Itself
Mountain mansions and cabins, apart from maintenance, have a relatively low overhead cost. Remember, people rent cabins mainly for nature, not for the property itself. This isn’t to say you shouldn’t spruce up the property at all – you should still make it worth your tenant’s money. You must make it “rent-worthy” but there’s no need to go overboard. Your guests are aware they’re mainly paying for the views, anyway.
What Are the Cons of Owning a Mountain Mansion or Cabin?
Don’t forget to consider the cons before putting down a deposit on your new cabin rental.
#1. Maintenance Costs May Be Expensive
Maintenance is one of the most challenging components of owning a mountain mansion. Cabin rentals will likely more repairs and upkeep due to the exposure to extreme weather. Mansions made of wood will have a variety of challenges of their own, as the material will deteriorate over time. Maintenance costs can pile up, so it’s best to partner with a property management company that has its own vendor network that can provide services at discounted rates.
#2. You’ll Have to Deal With Unwanted Guests
If your property is near a wooded area, you must add “pest control” to your maintenance checklist. If your property is infested with insects, your guests will give you a one-star rating, and as a result, other people will avoid it. The solution is to practice proper pest control. Unfortunately, it can be a bit expensive — if your property is far away, you will have to pay more for the travel time.
#3. Mountain Mansion Management May Be a Challenge
If you don’t live near your holiday rental, you’ll have a hard time dealing with maintenance. It’s challenging to run a mountain mansion from afar as these types of properties tend to be off the grid, thus commutes tend to be lengthier.
But that doesn’t mean managing your mountain mansion from a distance can’t be done. With the best property management company by your side, you can attend to your mountain mansion’s day-to-day needs.
What Are the Common Mountain Mansion Management Costs?
Partnering with a property management firm is a non-negotiable for anyone who owns a mountain mansion. They’ll take your tasks off of your hands so you don’t have to deal with your duties (and waste time traveling to and from your rental) yourself. Wondering how much it’ll cost you? Below is a breakdown of the common costs associated with mountain mansion management:
- Setup Fee. Some property management companies will charge a setup fee to create an account with their company.
- Monthly Management Fee. Companies typically collect a fee for managing your property per month. In most cases, this is a flat fee, but some companies may opt to collect a percentage of the monthly rent (around 8% to 12% of the monthly rent). Make sure to ask how the monthly management fee is calculated when you choose among management companies.
- Tenant Placement Fee. Some companies charge a separate fee for securing a tenant. It includes the costs to market the property, screen tenants, conduct move-in inspections, and prepare the rental contract.
- Vacant Property Fee. Overseeing a vacant property tends to be more time-consuming. The company will have to visit often to make sure it stays in good condition and safe from crimes such as theft and vandalism.
- Late Rent Payment Fee. Not all companies charge this, but those that do collect between 25% to 50% of the late fee as compensation for the time and money they spent chasing after the tenant.
Mountain mansion management fees will largely depend on which company you partner with. When choosing a management company, make sure to ask about their fee breakdown and to partner only with companies that are fully open with their policies. Your company shouldn’t surprise you with any add-on fees.
Find a Mountain Mansion Management Firm You Can Trust
Whether you turn your mountain mansion into a year-round or short-term rental, or use it solely for personal purposes, you should always partner with the property management pros at Luxury Property Care. For years, hundreds of mountain mansion owners in Florida have turned to us for all-around property management they can count on. Not only are we well-versed in the mountain mansion market, but we’ve also been in the property maintenance business for years. We’ll maintain your mountain mansion as if were our own.
We’d love to tell you more about how we can help with mountain mansion management. Call (561) 944 – 2992 or complete our contact form today to book a one-on-one consultation.