To determine the investment in Whistler ski-in/ski-out real estate, you need to view the last two years of revenue statements. However, this will not give you all the information you need. One missing link is always how often the owner used the property. Even with that information you are not able to see how available the unit was to the rental management company.
Revenue information should be obtained from the listing real estate agent. However, it is not easy to get a revenue statement from a property management company. In fact, this is one of the greatest challenges for a buyer’s agent. Most, but not all listing realtors may ask for the revenue statement before listing. However, the rental manager may be up to his neck in customer service so providing a statement may be at the bottom of their list.
Some rental management companies are more cooperative than others, and some have a financial person who provides the statements. Without this information I don’t know how you can start to formulate a spreadsheet for investment purposes. May I suggest, that you really need an experienced agent when you are considering an investment property, otherwise you could go round in circles.
- Rental Revenue History
- Rental Management Company
- Lifestyle Versus Return on Investment
- Best Rental Times in Whistler
- How To Calculate Revenue
- Is Mountain Biking Good for Ski-in/Ski-out Real Estate?
- Frequently Asked Questions (FAQ)
- Market Update Page
Rental Revenue History
I did this rental revenue comparison exercise twice, once in 2008 – when I had a lot of time on my hands, and again in 2012. The result was the same. When a traditional rental management company is involved, the gross revenue is basically halved. From the other half, the revenue is eaten up by the property taxes, the Tourism Whistler fee and the strata fees.
Simply stated, self-managing your property means that you are keeping the 50% which would have gone to a rental property manager. There are only a few ski-in/ski-out properties which mandate using the property rental manager. These are Le Chamois and First Tracks Lodge. The Snowridge Circle townhomes are not zoned for nightly rental, but every other development or complex featured on this site has the option of being self-managed.
Rental Management Company
It used to be that an experienced rental management company will cost you 40% of the gross revenue. This included a management fee, credit card fees, housekeeping, and various other expenses. I suggest you calculate your figures at a conservative 50%. Please note, the rental management companies are not getting rich at this rate, I used to work for one, and it was a struggle for the owner to make money. You just have to put it down to the cost of doing business, and the piece of mind that a company is looking after your investment.
The development of rental portals, and especially Airbnb, has resulted in opportunity in Whistler. Younger entrepreneurs have recognised that they can market your property through these established portals. This means that their rates are usually around 25% of your gross revenue. Worth looking into your options.
The rental management companies prepare all their revenue statements differently. So, again it is impossible to compare each statement…believe me, I have tried to do this. If you wanted to compare a 2 bedroom revenue statement in First Tracks Lodge against a 2 bedroom in the Woodrun, you would be no further ahead.
Lifestyle Versus ROI
This brings me to the reason people buy in Whistler…lifestyle. I have been selling Whistler since 2005. When I have a buyer whose investment decision comes down to how much revenue, they rarely, if ever invest. This is because they are looking at the ROI based on numbers, and comparing it to whatever else they may have been considering as an investment.
Most owners make money on the appreciation in property value. We only have to look at the sale prices in 2015 and compare them to present sales. Please click on the following links to view Luxury Home Sales, Townhouse Sales and Condo Sales and you will be able to see the appreciation value in each segment. Wear and tear on a property can be detrimental to what you net from the rentals. I am seeing a trend where buyers who can afford a $2M recreation property, just do not need the hassle of renting it out to earn $50,000.
Vail Resorts Impact on Whistler Real Estate
There is no doubt that with Vail Resorts now owing Whistler Blackcomb and investing heavily, we will continue to see more buyers for Whistler real estate. Vail Resorts continued the investment into Whistler Blackcomb in 2018 with a new ten passenger gondola. This gondola replaced the Wizard and Solar Coaster chairs on Blackcomb Mountain. Reading their plans for development, there is no doubt that there is a slant to maximize the summer sight-seeing and mountain bike traffic on the mountains. More visitors means an increase demand for summer accommodation rentals. This investment also means more visibility and media recognition for Whistler, which will attract more visitors and hence more people who want the Whistler lifestyle.
Best Rental Times in Whistler
Without a doubt the Christmas and New Year period is very lucrative for rentals, as the Resort is fully booked at that time of year. With ski-in/ski-out real estate, the winter season produces a longer stay, usually 4 night minimum. This means a higher room rate than the summer season. In summer, the stays are shorter, usually one or two nights, and the hotels have more availability, so they are quicker to drop the price.
How to Calculate Revenue
This takes time and patience. The best way to do this is to look up a rental management website and take note of their nightly advertised rates. You may have to look at several management company sites. In addition, you may have to guess the missing rates. From there you can make your deductions for the time you would be using the property itself.
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