Trying To Rent A Seasonal Home in Vermont? Try Buying Instead
Seasonal rentals in Vermont are harder and harder to come by these days. A quick Google search for seasonal rentals from Killington to Stowe returns few, if any, results. Word on the street is that the waitlist for Sugarbush rentals is 2 pages long. Considering the influx of new Vermonters, high demand for short-term escapes from the city, and questions around the end of COVID, it’s no surprise that rentals are booked now through April 2022. People around the country want to be in Vermont this winter. Are you one of them?
If you've been looking for a winter rental, maybe you should consider buying instead. For the price of a season-long rental, you could have a four-season escape of your own. Buying a mountain home also offers your own rental income in this high-demand rental market.
Read on to learn how to get into the mountain marketplace.
Why Buy Instead of Rent?
Depending on where and when you’re renting, buying a home can often save you money in the long run. Rental rates are skyrocketing across the state and the monthly fee you would be paying to someone else could be turned into equity instead. Owning rather than renting also gives you the flexibility to remodel as you see fit, leave toys and clothes behind to save time and effort packing, and allows you to spend time in your favorite place during the off-season.
Further, tourism is central to the Vermont economy and even if you don’t plan on renting the property out, real estate values are likely to continue to increase in resort towns. When considering buying over renting, think about why you were looking for a seasonal rental in the first place.
In addition to the financial returns we discuss below, there’s also an emotional return. Whether it’s finding a place to unwind from the stress in your life or a fun place to spend the weekend, it’s important you consider the intangible advantages of owning your vacation getaway. There’s plenty of debate about investing in real estate, but considering the current state of the rental market, if you’re looking to spend some vacation time in Vermont you should seriously consider taking the plunge and making the purchase.
Timeframe
Serious buyers who want to enjoy their slopeside condo or mountain retreat this winter need to start making moves now in September and October. The Vermont real estate market is still a seller’s market with high demand and low inventory. So, it might take a few tries to get an accepted offer on your ideal home. After negotiations, inspections, and financing, you’ll likely close by December.
Making it an Investment Property
Model Your Rental Income
If you’re looking to offset your costs or simply make money on your mountain home, start running some numbers to see what you can expect to charge. You don’t need a finance degree to run pricing models. Do a quick search on AirBnB or VRBO for similar properties to what you’re looking to buy. Look at your calendar and pick the days you would want to use the property and then using your AirBnB research, multiply the average rental fee by the number of days you’re hoping to rent.
Don’t forget to factor in costs like insurance, maintenance, and taxes. Often people are very conservative with their cost estimates and don’t realize that renting will most likely offset expenses, not turn a profit. In super high-demand areas, there’s a better chance of getting a return on your property rental. If you are hoping to make money, consider a larger home that can host big families, wedding parties, and corporate trips where your steep rental fee can be split amongst many.
Talk to a Tax Professional
Second homes, investment properties, and rental properties carry various tax implications. It’s best to speak with a certified tax professional to talk through the different advantages and disadvantages of buying a second home. In some situations, living in the home for two weeks out of the year will save you money whereas renting the property 365 days out of the year will classify it as an investment rental property.
Confirm You Can Rent the Property
Many condo HOAs and community boards restrict the number of renters possible in a neighborhood or complex. If you plan to rent, make sure you confirm that this is an option before you make an offer. Our helpful and knowledgeable Vermont Real Estate Agents are happy to help you with this.
Picking a Mountain Town
If you’ve vacationed in the same spot for years then you probably have a good sense of the community. However, you’re going to want to look into zoning rules, HOA regulations, tax rates, and other factors you never considered as a renter. If you’re looking for a new vacation spot, then consider a weekend trip to the resorts on your list. Get outside, try different dining options, sample the nightlife, and spend a night staying in and cooking. This will give you a feel for the distance to the grocery store, how quiet or lively the nightlife is, and other little things you might overlook when simply renting. Check the local event calendars for things to do that might make the town more attractive for a full-time home.
Check out 5 Things to Look for in a Mountain Town
Our Favorite Mountain Towns
Stowe
The gold standard for Vermont winter getaways, Stowe is widely considered the ski capital of the east. Sporting a quintessential Vermont downtown, tourists and second homeowners descend on Stowe every winter to enjoy everything the small town has to offer. From an abundance of breweries, including The Alchemist, to cross country skiing at the von Trapp Family Lodge, Stowe has something for everyone.
Read our Stowe area profile for more!
But a winter wonderland isn’t all Stowe has to offer. Beyond winter, Stowe offers a little bit of everything from fly fishing and river tubing, to horseback riding and mountain biking. From spring to fall, locals and visitors alike frequent the many shops and farmers’ markets, enjoy the hiking trails of Vermont’s tallest peak, Mount Mansfield, and take in the fresh air Vermont’s Green Mountains are known for.
An easy 1-hour drive from Burlington and BTV International Airport, Stowe is a great place to own a second home from anywhere in the country. New Englanders have easy access as well with a quick 30-minute drive off I-89.
Mad River Region
The Mad River Valley is home to Sugarbush Resort and Mad River Glen. Consisting of the neighboring towns of Waitsfield, Warren, Fayston, Duxbury, and Moretown, the ‘Valley’ is a popular tourist destination in northwest Vermont. Sugarbush offers a more resort-like feel with numerous ski-in/ski-out condos and plenty of on-mountain housing. Meanwhile, Mad River Glen proudly sports a more spartan operation with housing lining the mountain road approach.
Read our Mad River area profile for more!
Just like Stowe, the Mad River has plenty to offer all year round. Fishing, hiking, lounging, shopping, golf, and gliding, are just a few of the activities you can do in the warmer months. Summer is full of music and beer festivals, farm-to-table tours, and farmers’ markets. We can’t share our favorite local swimming holes, but trust us, they’re there.
Just like Stowe to the north, Burlington and its airport are close by and the ride off I-89 is a half-hour in the opposite direction.
Interested in finding a second home in the Mad River Valley? Connect with our Mad River Valley Area Specialists:
Bolton
Bolton Valley is a great alternative to the larger mountains in Vermont. An easy 30-minute drive from Burlington, this small, family-owned mountain is a popular local resort. While Bolton doesn’t offer the same downtown feel, homeowners at Bolton can head to Burlington and Church Street to fill any small town void. Bolton offers a budget-friendly option for those looking to buy a second home with condos starting around $250k. The recent purchase by the DesLauriers family reignited this local mountain with new offerings and infrastructure updates. Whether it’s lift-served skiing and riding, skinning into the backcountry, or mountain biking in the summer, Bolton Valley is a great second home option.
According to our Bolton Specialist, Paul Hayes:
“The Bolton rental market is a ghost town, there are very few if any places to rent. Home sales, however, are off the hook! We owe that to not only the infrastructure updates but the awesome uphill travel that encourages hiking and skinning.”
Read our Bolton area profile for more!
Located about 20 minutes from Burlington, 10 minutes from Waterbury, and 25 minutes from Stowe and Montpelier, Bolton is a great spot to be nestled in the mountains while easily visiting neighboring towns.
Killington
In contrast to the others on our list, Killington offers easier access to visitors from Boston and NYC. This southern Vermont mountain is an icon in the winter sports world, proudly nicknamed ‘The Beast of the East’ due to its stature as the largest resort in the East. Killington hosts the Audi FIS Ski World Cup among other major events throughout the year. While the mountain offers plenty of opportunities to enjoy the outdoors, Killington’s mountain road is renowned for its nightlife. Home to JAX, Wobbly Barn, Pickle Barrel, Sushi Yoshi, and other well-known watering holes, there’s a restaurant for everyone on Killington Road.
Read our Killington area profile for more!
The real estate market includes on-mountain condos, off-mountain retreats, and land to build your dream home. Nearby Rutland offers a place to go for shopping and outfitting your home. Only three hours from Boston and five hours from NYC, Killington is an attractive location for a rental property. With plenty to do on and off the mountain all year round, the chances are high that you can book multiple nights a week.
Interested in finding a mountain home?
Contact our second-home specialists today!
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