Fees & Income Generation
Our property management fee is 27% of monthly rental revenues. When a guest books your unit, he or she will pay the cost of the rental and a cleaning fee, plus tax, plus a processing fee if they're using a credit card. The cleaning fee pays for a pre-visit inspection and a post-visit cleaning. At the beginning of each month, we'll send you a check and a statement outlining the previous month's revenues and expenses.
We charge 27% of the rental only. Here's an example. Let's say someone rents 5 nights at $200/night. Now let's assume the cleaning fee is $70, and the condo is in Breckenridge (that matters because of the tax rate in the example). The total, including taxes and cleaning, will be $1,176.75. However, the rental portion is $1,000 ($200 times 5). Our commission is 27% of that $1,000.
The best kept secret in property management is that it doesn't need to cost any more than 27% for us to make a living. The lower commission gives you and us additional flexibility; we can offer lower rental rates to book more nights, or we can set rental rates high and keep your nightly profits high and occupancy down. We'll work with you to find the perfect balance.
There isn't one. We've been doing this for a long time and we know what it takes to make a living and leave the lion's share of the revenue for our clients. We appreciate our clients and it shows.
Extra what? We're not into that. Here's a little example of how we make money. We manage a house where the neighbor across the street uses one of the 45% management companies. In talking with him recently, we learned that in one 3-month winter period his house was rented 45 nights for $425/night. His management company made about $8,600 and he made a respectable $10,525. He couldn't have been happier. Our house (which is nearly identical) was rented 72 nights at $375/night over the same quarter. We earned $7,290 and our client made a cool $19,710. Our Client made 87% more than his neighbor with almost the same house! Needless to say, the neighbor switched to us and he's now our happiest client. What's interesting is that we made a similar amount of commission as the 45% company. We had a lot more renters so we had to work a little harder for our money, but that's our business model. We like to please our clients, especially when our hard work can result in 87% more income for our them.
Well, not exactly period. We offer what we call "Summit County's only optional no-fee management service". What we're referring to is linens. Some of our clients choose to purchase and own their own linens, in which case there are ZERO FEES! However, you're welcome to rent our linens. That's the only recurring fee we ever charge, and it's OPTIONAL!
Our optional linen program costs $1.50 per month per person of occupancy per month for towels, and the same amount for sheets. For example, if you own a condo with maximum occupancy of 6, we'll charge $9/month for towels and $9/month for sheets - regardless of how often it's rented.
Our 27% commission covers reaching potential guests and closing the deal, advertising, search engine optimization, detailed monthly revenue & expense reports, monthly checks mailed to you, and more. Learn more by reviewing our Property Management Agreement here.
If you're a prudent property owner, and most property owners in Summit County are, you're probably in the process of weighing your management options. By now you've probably realized that the main options are (1) going with an excellent full-service property management firm that charges 27% commission, (2) going with a poor property management firm that charges somewhere between 40% and 50% commission, or (3) renting it yourself. There's really no reason to go with Option 2, so in the following questions we'll look at Option 3.
What to Expect
With Stay Summit (formerly All Summit Accommodations) it couldn't be easier. Unlike other property management firms, with Stay Summit you just log in to your online account, check availability, and book online at any time. No questions asked, no minimum notice, no limit on use, no hassles. The only catch is that we must clean the unit after you leave. That's the only way we can know that the unit is cleaned to our standards for the next guest. You're welcome to clean the unit yourself, but we still have to pay someone to stop by to verify cleanliness and replenish bathroom amenities (soaps, shampoos, etc.).
Property owners in Summit County are often able to rent their units themselves. But what are your goals? Are you looking for a part time job? Keeping track of inquiries, rentals, payments, cleanings, licenses, taxes, maintenance, repairs, and bills for one house can take many hours per week. If you are interested in having a part time job after working all day, then renting your own unit may be right for you. But keep in mind that without the advertising and search engine optimization we provide, and top-notch website like ours, your revenue is unlikely to match what we can produce. In most cases you can make more money at the end of the day with Stay Summit (formerly All Summit Accommodations) than you can by doing it yourself.
Fair enough; we tried. But as a friendly service to you, let us remind you of what you'll have to keep track of. If you’re renting a Breckenridge condo yourself, don’t forget Breckenridge sales tax, Breckenridge accommodations tax, Summit County sales tax, Summit County mass transit tax, Summit County affordable housing tax, and Colorado sales tax. And don’t forget you have to report each on a monthly basis and keep accurate records for reporting at the end of the year. And you'd better not forget to make sure you have a license to take all these taxes, and that your license is always up-to-date. Got a headache yet? Remember, our 27% commission doesn't mean you'll make 27% less. That's because we will rent it more than you can. This is what we do, all day every day.
A setup fee will be deducted from your first rental, so there are no out-of-pocket costs. The fee varies depending on the size of the unit. It covers an initial inspection of your unit, pictures, verification of directions, written description, web page setup, owner login setup, and more.
The Stay Summit Advantage
We only want you to make your condo or house as appealing to renters as possible. For example, we expect you to fully stock your kitchen and keep your unit in good repair. At our initial consultation, we will recommend some improvements that will add to your unit's appeal. For example, many renters love to have a blow dryer, flat panel TV, and a video game console (Wii U, Xbox, etc.). These items are not absolutely necessary but will pay for themselves many times over. Again, we can help you decide where to spend your money to get the most "bang" for your buck. To learn more about your duties and responsibilities as an owner, refer to the Property Management Agreement here.
Stay Summit will send individualized statements to you at the beginning of each month. These statements will outline your unit's performance during the prior month. Within a week, the monthly statements will be followed by a check for your portion of the revenue, typically 73% of the revenue minus unexpected costs.
In addition to being a full-service short-term rental leasing firm, Stay Summit is Colorado's premier property management company. We are your eyes and ears, keeping constant contact with you regarding any recommended improvements. Over the years we have also developed a solid team of reliable contractors and trades. Most property owners in Summit County know that it can be hard to get good people to return your calls or show up on time. With Stay Summit this is a problem of the past.