Every now and then we are reminded that we share the outdoors with animals, sometimes potentially dangerous ones, without knowing it. A few days ago, I was hiking on the Lower Loop and came across a severed deer leg that was still very fresh looking. I realized it was probably the result of a mountain lion kill and thought about it for the rest of the hike. I didn't feel like I was in danger, since lions typically hunt at dawn and dusk, but it was still a haunting sight. Funny enough, I had been hoping to see a moose on this hike, since a couple of them had been spotted in the same area during the past several weeks. Moose are dangerous too, but I felt like I would be at enough of a distance to feel comfortable. Alas, no moose, just the sense of my own mortality. I had seen a fluffy fox 2 days previous in the same area, but foxes and smaller critters aren't frightening. When you live and play adjacent to over a million acres of wild and protected land, it's good to know that animals like lions and moose are sharing the space and thriving. Sure beats working in the city!
 It's wildflower time and the crop is pretty good this year. Despite the lack of moisture in June and part of July, the dependable monsoonal flow has kicked in. The temperatures are now cooler and there is usually at least a little moisture every day. Due to the good snow season we had, there is still quite a bit of snow to be found in upper elevations. There is still a substantial snowplug blocking the Emerald Lake road access, so it's a longer hike than usual to Aspen over West Maroon Pass. But the flowers are spectacular and the additional mileage is worth it!
Recently, a 1/4 acre lot in town sold for $1.3MM: Block 70, lot 1. It's outlined in red below. In the meantime, I have 2 McCormick Ranch lots of 35 acres each listed for $2.2 and $2MM, lots 6 and 7 respectively, outlined in pink and yellow below. The McCormick Ranch allows for larger building sizes and you have fishing rights! The town lot has no fishing rights and you have to build according to town code and BOZAR. I may be biased, but I think these McCormick Ranch lots are worth a look.  From the cotrip.org website:
GCR 12 Westbound / Eastbound Kebler Pass (Milemarker 0-31) Kebler Pass will be opening Thursday, May 25, 2017 at 5:00 p.m. for public travel. The barricades and equipment blocking the road will not be moved until 5:00 p.m. Please expect rough, wet, muddy spring conditions. Seasonal Closure began December 9th, 2016 at 12:00pm. Last Updated: 05/24/2017 8:49 AM It always feels great when Kebler Pass opens for the summer. We are now able to get to Hwy 133, Carbondale, Aspen and Glenwood Springs much more easily. But it also somehow feels less claustrophobic knowing there are now 2 egresses from Crested Butte. Just in case. But, Cottonwood Pass will be closed for the next 2 summers (2017 and 2018) so Monarch is the only option in that direction. For all of my Texas and Oklahoma friends, the weather here this "mud season" is spectacular! It's around 65 degrees and sunny with a gorgeous blue sky. That isn't to say that it won't snow tomorrow, but I sure appreciate the bluebird days in spring. Most of the hiking/biking trails are still filled with snow, so they aren't quite ready yet, but the paved and dirt roads around town are all melted out. It's a good, quiet time to get some mileage in before the full thaw and the crowds descend.
After the ski resort closes in early April through June are usually considered off season in Crested Butte. Lots of restaurants close, seasonal employees leave, and the pace is slower. This year is a bit different, at least as far as real estate goes. We still have some tourists in town, and smart investors are beating the summer rush by looking at and buying property now. There are currently 131 properties between Gunnison and Crested Butte that are under contract, which is quite a large number for us for this time of year. 3 of those are for over $4 million, and there are another 2 in Crested Butte around the $2.7 million mark.
I'm looking forward to this strong market continuing into summer. I've recently written a white paper on what buyers need to know about short term rentals in the Crested Butte area.
Here it is: 7 Things buyers need to know about short term rentals.
The most important aspects of maximizing the return on your investments are buying for the right price, getting as many rental days as possible, and maximizing the price of those rental days. Most vacation property owners also use the property for their own enjoyment. It’s important to consider how often and when you use the property, as you will be taking the property out of the rental pool during those days. If you plan on being in the property all summer, you will be losing the most valuable days for rental, thus lessening the return on the property. You might want to consider using the property during less “valuable days” such as in June, September and October, leaving the key months of July and August and the week of the New Year available for rentals. Getting the highest price per rental night is also very important. I tend to look at similar properties on online listings to gauge what prices people can get for similar properties. Having the lowest priced 3 bedroom property can increase the number of days you rent it for, maximizing your return. If you plan on merely subsidizing your vacation home with a few rentals, that may result in your choosing to rent it for a higher price less often. Do the math and multiply the number of nights rented times the price at which you can rent. Spreadsheets go a long way towards informing you of rental income you can expect. HOA fees are an important consideration as they are monthly expenses that will likely never go down, but may go up. During your purchase, it’s important to look at the HOA documents and budgets to make sure you are aware if there are any upcoming assessments or large capital projects. Not all properties have HOAs, but most condos do. Homes in the towns of Crested Butte and Mt Crested Butte don’t have HOA fees, but there are HOA fees in CB South and Skyland that aren’t very high. Buying at the right price – that’s where a knowledgeable real estate professional can help. They know the market and the comps, and can help you negotiate the best buying price possible. 2 – Location Location is often cited as the most important component in deciding which property to purchase. This is even more important when considering a rental property. In the Crested Butte area, there are different rules about short term rentals in various locations, so it’s important to research all of the facts. For example, the Red Mountain Ranch, Glacier Lily, Silver Sage, Rivergreen and Moon Ridge subdivisions have restrictions on short term rentals, usually restricted to 30 day minimum rental periods. The town of Crested Butte is developing its own restrictions as well. Currently the ordinance that has been passed incorporates the following restrictions: The current zoning restrictions will remain There will be a cost for a rental license, as yet undetermined The license will be for a period of 2 years and there will be property inspections every other year Rental of a portion of your property requires a representative staying on site An STR license doesn't transfer in a sale of the property All neighbors within 100 feet of the property must be notified of the STR license A contact person must be available to respond to an issue at the property within 1 hour There is a maximum number of people (10) who may occupy the rental, unless issued a variance There is a 30% cap on the number of short term rental licenses in the Verzuh area, any more will be put on a waiting list Primary home owners, except for deed restricted areas, can short term rent for 60 days/year 3 – Taxes Taxes charged for short term rentals also vary due to the municipality. The towns of Crested Butte and Mt Crested Butte charge a fee for a rental license, and taxes are an additional 13.5% (paid by the renter). 4 – Marketing How do you want to market your rental property? Most people use websites like Homeaway, Airbnb and Vacasa. You want to make your listing on these websites stand out with great pictures and videos, some details about the location and even personal facts about the property to give renters a more emotional feel for it. 5- Property Management The 2 main considerations here are: do you want to do it yourself or have a management company do it for you? Property management fees vary, as does the list of things they do for you. We have a number of property managers in town, and there are also national companies that do the job as well. Both tend to use websites to market the property. I would suggest contacting both local and national managers with a list of what you would like them to do and then compare prices and the fit. Some people choose to advertise their property on the various websites themselves, then arrange for local cleaners and a lockbox for access to the property. Deciding how to manage this part of the equation is very individual to your accessibility, desire to do it yourself and level of service you wish to offer. There are going to be questions from renters periodically (like what is the Wifi password?) and emergencies, so consider your desire of how hands on you want the process to be. 6- Presentation Taking great photos is very important in giving people a great impression of your property. Outside amenities and views should be highlighted as well. It often pays to have professional photos done in order to best portray the property. Video is another great tool, and drone photography is becoming much more common too. Eradicating clutter and personal items go a long way in helping the renters feel more at home. However, DVDs, games and even a deck of cards are great things to have around. 7 – Getting the property ready Getting the property ready for rental means having basic necessities on hand for your renters. Imagine coming off a delayed flight when they have lost your luggage. You get into town and every store is closed. It’s very welcoming to have basics on hand for guests under those circumstances. Besides towels and linens, you may want to stock toiletries (soap, shampoo and conditioner, a hair dryer) laundry detergent, plenty of kitchen items (dishes, silverware, glasses, utensils, pots and pans, cleaning supplies) bedding, TV and cable/satellite/Apple tv. If this property also doubles as a vacation home for you, it’s nice to have a lock off area, which can be a closet and/or storage area. That way you can keep your own linens and towels apart from the renters’ and not have to restock your own items all of the time. Those are the 7 most important things to consider in an investment property in Crested Butte, Colorado.  Being a ski patroller in Crested Butte is probably unlike being a patroller in most resorts. We have some very difficult terrain, and their job is to not only make sure it's safe to ski, but also to help those who get injured while skiing. It makes for some amusing signs, that should absolutely be heeded. In the above picture (that's me on the right) not only do the regular signs say experts only and cliff area, but there needs to be additional signage specifying the danger and telling people to not take their skis off. Good advice and this area shouldn't be skied by anyone who isn't confident enough to ski past the signs. I can't enumerate how many times I have been in an expert area and someone asks for the easy way down. I know signs are easy to overlook, but they really should be read and considered. And usually, there is no easy way down!
As I meet people in town, on the bus or on chair lifts, I am seeing a shift from our usual Texas/Oklahoma visitors, to clientele that includes more Front Range visitors. This is a fairly new demographic for us, and one that is interesting for many reasons. For one,they can get here for a 2 day or 3 day weekend. I think once they come, quite a few of them become enamored with our little town, the high quality of the public school, and the quality of life up here in the mountains. We see a number of them looking at second homes, and a smaller subset then looking to relocate here.
This phenomenon has kept our ski mountain (and the trails in the summer) busier and local businesses more sustainable. I still love our Texas and Oklahoma folks, but I think diversification creates a healthier business environment. Especially when their spring breaks don't overlap. I'm always just glad to see more people enjoying doing some of the things I've gotten to do here over the years. Don't hesitate to reach out to me for suggestions on activities or recommendations of restaurants. No matter where you are from, Crested Butte is a pretty special place to come visit. Short term rentals (STRs) in the town of Crested Butte have gotten a lot of attention lately, with the town council endlessly debating whether or not to put any restrictions on homeowners. They have finally come to a consensus about passing an ordinance, albeit one without any limits to the number of rental nights or number of properties able to short term rent. They have said they will have further discussions on those matters in the near future.
The Ordinance that has been passed incorporates the following restrictions: The current zoning restrictions will remain There will be a cost for a rental license, as yet undetermined The license will be for a period of 2 years and there will be property inspections every other year Rental of a portion of your property requires a representative staying on site An STR license doesn't transfer in a sale of the property All neighbors within 100 feet of the property must be notified of the STR license A contact person must be available to respond to an issue at the property within 1 hour There is a maximum number of people (10) who may occupy the rental, unless issued a variance The passed ordinance is generally being viewed as relatively mild considering the more draconian discussions that were taking place. Those included as few as 90 days of rentals possible, and/or restricting the overall number of licences granted. Fortunately the more severe parts have not yet been decided, and are hopefully forgotten forever. The mayor and another council member recused themselves because they both have STR licenses in areas of town for which short term rentals are not allowed (!) Of the remaining 5 council members, 3 don't have STR licenses, 2 because their property is also in an area restricted from STRs, the other because he doesn't own a house. I think this whole discussion is just a supreme conflict of interests and will probably result in a lawsuit if more measures are voted in. The fact is that our town has become popular and there aren't enough hotels in town. Ironically, the lack of hotels is mostly due to town council's previous forays into changing the local laws and making commercial building (including hotels) financially nonviable due to insane fees.My hope is that council members look down the road at what will result from their actions and let the market determine the outcome, as it does. Too much meddling will result in the exact result they are trying to avoid. |
AuthorDiane Aronovic is a former Managing Director at B of A Securities, and a real estate agent in Crested Butte, CO Archives
August 2019
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