Rental Revenue Opportunities

Vacation Property Rental Opportunities

1. WHAT’S IT ALL ABOUT?

Many owners of second homes in Telluride choose to take advantage of the many benefits of listing their property in a vacation rental pool, including earning revenue on their property. You have the opportunity to hire Alpine Lodging & Real Estate as your property manager to strike the best balance of maximizing rental revenue and maintaining your property, while accommodating your desire to utilize your vacation home personally.

2. WHEN CAN I USE MY VACATION HOME FOR MY PERSONAL ENJOYMENT?

First and foremost, anytime it is available! Twice a year we require you to send us your anticipated owner usage calendar. After receipt, we do our best to rent the property around your stays. We ask that you give us notice before using your home. As your plans change, we’ll work together to try to accommodate your desires even if that means moving a guest to a comparable property, if possible. We will send you an Owner Calendar approximately 6 months before the summer and winter seasons for you to indicate which dates you intend to use your property, and following the Owner Calendar due date we will begin confirming guest reservations.

3. WHAT DO YOU DO FOR ME?

Our preferred vacation rental agency, Telluride Alpine Lodging, has three divisions dedicated to serving you: Owner Services, Sales, and Guest Services, all backed by an experienced, strong management team and efficient and informed accounting department. Owner Services is your primary contact. This team inspects and manages your property by coordinating all subcontractors for your property including snow removal, landscaping and repairs. Through its extensive marketing investments they expose your property in a way no other management company can, and that is primarily through newly re-designed websites such as TellurideHotels.com. Telluride.com has more visitors than any other website in the Telluride market. It offers on-line bookings as well as a fully staffed and highly trained sales team. The Guest Services department greets and checks in your guest upon arrival and makes sure that your property is clean and perfect for their enjoyment. If there are any problems or complaints, Guest Services handles them 24 hours a day.

4. WHAT CAN I EXPECT TO EARN?

Rental revenue varies significantly from property to property depending on the number of beds, location and availability. Contact us and we will do a custom pro-forma rental revenue analysis for your property.

5. WHAT ARE THE MANAGEMENT FEES?

We have restructured our management fees to be more closely tied to actual services performed to help maintain and/or rent your property. The management fees include a fixed monthly property management fee, a booking fee and actual pass-through charges. These charges are detailed on a separate spreadsheet that we would be happy to send you.

6. WHAT’S NOT INCLUDED IN THE MANAGEMENT FEES?

What is not included are furnishings, housewares, all utilities, cable TV, basic phone service, owner-use housekeeping services, laundry and supplies, carpet cleaning, dry cleaning, typical home services such as landscaping and snow removal, and extraordinary management services. Examples of extraordinary management services are: Expansion/renovation supervision, acquiring furnishings and other non-rental or guest-related tasks.

7. WHAT ABOUT LINENS?

Owners are required to pay for the use of a professional linen package for their property. The cost of the linen package is calculated at $125 times the number of bedrooms in the unit. This package will outfit the entire property with first quality bed linens, all bathroom towels, and all kitchen towels, potholders, etc. This fee is non-refundable.

8. ARE RENTAL RATES ALWAYS FIXED AT THE PUBLISHED RATES?

The published or “rack” rate is the rate we strive to achieve but it is not uncommon for us to have to negotiate off those rates in order to generate occupancies and maximize your rental revenue. In many cases, potential guests are shopping other options and have competing property and rate information for comparison purposes. We also work closely with a number of travel agents and wholesale reservation providers, which normally expect volume discounts ranging from 10-25% off the published rate.

9. HOW MUCH INSURANCE DO I NEED?

We recommend a minimum of $1,000,000 in general liability insurance. This level is generally quite inexpensive to obtain, most commonly by increasing your existing coverage, if necessary, at premium increases that range $50 to $150 annually. In addition, we strongly recommend an amount adequate to cover the replacement value of your furnishings.

10. WHAT IS THE TERM OF THE AGREEMENT?

The Management Agreement has a term of one year and will automatically renew for one-year periods. Either party may elect to cancel the contract with 30 days written notice. You must honor all confirmed reservations in place at the time written notice is given, but we will work with you to move them to comparable properties if you wish and if that is possible.

11. WHAT DO I NEED TO DO TO GET STARTED?

Provide a signed Management Agreement with a working capital deposit, a valid U.S. Tax ID number, keys, alarm codes, garage door openers and work with us to ensure that the proper furnishings and house wares are in place and that your home is in condition to provide a first class accommodation.