I am slowly getting closer to taking the drop on a quarter share at either the Grand Summit or Grand Jordan hotels. As I crunch the numbers to make this work out for me and my family, I am trying to get a handle on the opportunities to get some rental income coming back in my direction. My plan is to essentially allow my unit to be in the rental pool for all of the 13 weeks that I own and only use it via the space available policy.
So I would like to get some input on other's successes or failures in getting rental money back on their property.
I appreciate you answers and opinions as I try to make this work out.
Hey Jarod, we've owned at the Summit for 10 years since I retired, a sleep-4 studio. In the first few years the rentals were pretty good, and we made enough to come close to paying the maintenance fees. Since Boyne took over, the rental income has dropped quite a bit. I think we've been subsidizing the group ski-and-stay deals that SR offers. But the past couple of months the income has been better. We've averaged around a bit over $1,000/year in rental income since Boyne. But don't base a budget on much rental income.
Space A used to pretty much be always available in the past, especially since we always ski midweek. However, in the past few years, probably due to good marketing on SR's part, it's become less and less available. Impossible most weekends during prime time and the same for weekdays from February vacation through March. Check out the Owner Services website to see this for yourself. Other than prime ski season, though, you should always be able to get Space A. We use it often in the summer and fall. And it's great to have both hotels plus the hotel at Sugarloaf in play. (Although we long for the days when we had Killington, Mt. Snow, Attitash, Steamboat and Canyons available back in the ASC time when we bought.)
We give 2 weeks to the Boyne Vacation Club each year so we can get free membership to Interval International. The exchanges have worked out well for us. For example, last fall we spent a week in a beautiful one bedroom condo at the Marriott Ocean Club in Aruba on an exchange. I like the point system with Interval rather than the weeks with RCI. That's something else to look into.
We own at the Summit because of the convenience. That road up to Jordan can be tough, and it's a long trip every time you want to go into Bethel. Plus we've been burned a number of times when staying there as the Jordan lift is often on hold and you're forced to use the shuttle. But if everything is running properly, there's nothing like skiing out of Jordan first thing on a powder day.
I don't know what your family situation is, but my wife and I have really enjoyed owning here. But remember, as I was told before we bought and have realized since, this is not a real estate investment which will increase in value over time. The maintenance fees will never go down, but the value of your unit may. Our unit would probably today fetch about half of what we paid for it.
Good luck with your decision.
I appreciate the responses this thread has received so far. I will be skiing at the River over the weekend and plan to view a couple condos at the Grand Summit.
Grand Summit pioneer has had a place there forever, perhaps you can ping him on the side.
But remember, as I was told before we bought and have realized since, this is not a real estate investment which will increase in value over time. The maintenance fees will never go down, but the value of your unit may. Our unit would probably today fetch about half of what we paid for it.
This is very good advice. You have to be ready to kiss the money good-bye. If you have to play a lot of financial gymnastics to make it work, you probably shouldn't be buying it.
Hi Jarrod, I am 10 year owner at Summit also. Nice write-up by Old Timer. Basically our studio rental pays the maintenance costs, around $2k a year. We do use some of our weekends during the winter. We also rent a 1 bedroom condo at Riverbend because Space-A isn't always available. We come up most every weekend during ski season. Another benefit is an owners locker and access to the health club 24x7. The lockers at the Summit are bigger than Barker's.
We've been Summit owners for about 20 years. We bought one of the last available units in the "old" part of the hotel, before the newer east wing was added. I agree with what pretty much everyone else has been saying. Rentals and space available used to be much better. And, I agree that Boyne's "marketing" is the reason. Our feeling is that they are practically giving away the rooms so that they can make money on the lift tickets. Our rental income used to cover all our condo fees and taxes all the time, with enough left over for lift tickets or passes in good years.
I'm not sure that they are such a bad investment in terms of resale, though. We would be lucky to get back 50 cents on the dollar, but the market was very low last time we checked, and has probably bottomed out. I don't think it will increase much, but flat is better than declining.
We have a lockout unit. That's a studio-with-kitchen next door to a standard 2-bed hotel room, connected by an interior door. We think of it as a sleeps-6 unit, but it generally rents out as 2 separate rooms. These small rooms in the old wing, with the windows facing the mountain, are the best renting units. The larger 1-bedroom units cost more, so they don't rent as often.
If you have a single studio room, your space available option is just that. With our lockout, though, we can "downsize" to a 1 bedroom. This season, most of our space available time has been in 1 bedrooms.
I think what you mean is that you get to write-off a portion of the associated expenses against the rental income, which you have to report.
Oh, and the rental income is a tax writeoff
Wonder if people still feel that owning at Grand Summit is worth it, i am looking into it at this time.
I am looking at the sleep 4 studios and trying use it 3 weeks and get the maintenance out of renting what i can of the other 10 weeks.
is there anyone renting on their own as oppose to letting them do it. And also, wonder how much is the realty trying to make on top of the owners ask, is there a way to buy directly from the owners?
Thanks in advance for your responses.
Luis, I still feel the same way as 3 years ago. In fact, we sold our studio and bought a one bedroom lockout. Rental income seems to have gone up a bit as SR is doing more conference and wedding business in the off season. Prices are really cheap now compared with years ago. Some people have used the Summit Facebook page to offer units for sale directly.
Glad to hear that, would you mind sharing the facebook page, I am looking into it, but the page i found has no posts since 2013.