The True Cost of Owning a Copper Mountain Vacation Rental

You're thinking about buying a vacation rental in Copper Mountain. You've run the numbers on rental income. You've calculated what you could charge per night during ski season. The math looks good on paper.

But are you accounting for all the costs? Most buyers focus on mortgage payments and HOA fees. Those are the big ones. But vacation rentals come with dozens of smaller expenses that add up fast.

Here's the real breakdown of what it costs to own and operate a Copper Mountain vacation rental.

The Big Fixed Costs

These expenses hit every month or every year, whether your property is booked or sitting empty.

Mortgage payment. If you're financing the property, this is your largest fixed cost. Most buyers put 20 to 25 percent down on an investment property. That leaves a substantial monthly payment, especially with current interest rates.

HOA fees. Copper Mountain HOA fees typically range from $400 to $1,200 per month depending on the size of your unit and the amenities included. Some HOAs cover heat, water, trash, and exterior maintenance. Others charge separately. Know exactly what your HOA covers before you buy.

Property insurance. Mountain properties cost more to insure than homes at lower elevations. Expect to pay $1,500 to $3,000 per year depending on your coverage, the value of the property, and the building's location.

Property taxes. Summit County property taxes run about 0.5 to 0.6 percent of assessed value annually. A $700,000 condo will cost roughly $3,500 to $4,200 per year in property taxes.

Utilities. Some HOAs include utilities in the monthly fee. Others don't. If you're paying separately, budget for electricity, gas, water, internet, and cable. Expect $150 to $300 per month depending on the size of your unit and how often it's occupied.

Add those up and you're looking at $3,000 to $5,000 per month in fixed costs before you even account for management, maintenance, or cleaning.

Property Management Fees

If you're not managing the property yourself, you'll pay a property management company to handle bookings, guest communication, maintenance coordination, and cleanings.

Property management fees in Copper Mountain typically range from 20 to 35 percent of rental income. That percentage covers marketing your property, managing your calendar, responding to guest inquiries, coordinating cleanings, and handling maintenance issues.

Some property managers charge flat monthly fees instead of a percentage. Others include cleaning in their fee. Others charge separately. Make sure you understand exactly what you're paying for before you sign a contract.

On a property that generates $50,000 in annual rental income, expect to pay $10,000 to $17,500 per year in management fees.

Cleaning Costs

Every time a guest checks out, the property needs to be cleaned before the next guest arrives. Cleaning fees for vacation rentals in Copper Mountain range from $150 to $400 depending on the size of the unit.

If your property books 50 times per year, you're paying $7,500 to $20,000 annually in cleaning costs. Some property managers include cleaning coordination in their fee but charge the actual cleaning cost separately. Others pass the cleaning fee directly to guests.

Either way, it's a significant expense that many new owners underestimate.

Maintenance and Repairs

Vacation rentals get heavy use. Guests break things. Appliances wear out. Furniture gets damaged. Plumbing fails. HVAC systems need servicing. Locks jam. Ski storage racks break.

Budget at least 10 percent of your rental income for maintenance and repairs. On a property generating $50,000 per year, that's $5,000 annually.

Some years you'll spend less. Other years a water heater fails, the dishwasher dies, and you need to replace a couch all in the same month. The 10 percent rule helps you smooth out those fluctuations.

Don't forget preventive maintenance. Regular HVAC servicing, gutter cleaning, and roof inspections cost money upfront but prevent expensive emergency repairs later.

Furnishings and Replacements

Vacation rentals need to be furnished and stocked with everything guests expect. Beds, couches, dining tables, kitchen gear, linens, towels, dishes, silverware, and small appliances.

Budget $15,000 to $30,000 to furnish a property initially. Then plan to replace items every few years as they wear out.

Couches last 5 to 7 years with heavy use. Mattresses should be replaced every 7 to 10 years. Linens and towels wear out faster. Kitchen gear breaks. TVs become outdated.

Set aside $1,000 to $2,000 per year for replacements and upgrades. Guests expect modern, comfortable furnishings. If your property starts looking dated, your bookings will drop.

Supplies and Consumables

You'll need to stock your property with basics. Coffee, toilet paper, paper towels, dish soap, trash bags, hand soap, shampoo, and cleaning supplies.

Most property managers include starter supplies for each guest. But those supplies cost money. Budget $500 to $1,000 per year depending on how often your property is booked.

Seasonal Variations

Expenses fluctuate throughout the year. Heating costs spike in winter. Maintenance increases during heavy-use ski season. Summer months are quieter but still require upkeep.

If your property sits empty during shoulder seasons, you're still paying mortgage, HOA, insurance, and utilities. Those months hurt your cash flow even though you're not generating income.

Plan for seasonality. Don't assume every month will generate the same revenue or cost the same to operate.

Hidden Costs Most Owners Forget

Here are a few expenses that catch new owners off guard.

HOA special assessments. If the building needs a major repair like a new roof, new siding, or elevator replacement, the HOA can hit all owners with a special assessment. These can range from a few thousand dollars to $20,000 or more depending on the scope of the project.

Lockouts and emergency repairs. Guests lock themselves out. Pipes freeze. Toilets overflow. You'll need to pay someone to respond quickly, and emergency service calls cost more than scheduled maintenance.

Furniture damage. Guests spill wine on your couch. Kids draw on walls. Ski edges scratch floors. You'll need to repair or replace damaged items regularly.

Linen and towel replacement. Linens wear out fast with constant washing. Budget to replace sheets, towels, and comforters every 2 to 3 years.

Internet and cable upgrades. Guests expect fast WiFi and streaming services. If your internet is slow or your cable package is limited, you'll get bad reviews. Upgrading costs money but keeps guests happy.

Snow removal and exterior maintenance. Some HOAs cover this. Others charge separately or require individual owners to handle it.

What Percentage of Rental Income Goes to Expenses?

A well-managed vacation rental typically sees 50 to 70 percent of gross rental income go toward expenses. That includes mortgage, HOA, property management, cleaning, maintenance, utilities, insurance, and taxes.

If your property generates $50,000 in annual rental income, expect $25,000 to $35,000 in total annual costs. Your net income after expenses will be $15,000 to $25,000.

That doesn't account for your down payment or any loan principal you're paying down. But it gives you a realistic picture of what you'll actually pocket each year.

When Ownership Makes Financial Sense

Vacation rentals work financially when:

• You use the property yourself and value that personal use.

• The property generates enough income to cover most or all of your costs.

• You're building equity through mortgage paydown and appreciation.

• You benefit from tax deductions on mortgage interest, property taxes, and depreciation.

• You're willing to hold the property long-term and ride out slow years.

Vacation rentals don't work financially when:

• You're counting on immediate cash flow to cover other expenses.

• You're overleveraged and can't afford a few slow months.

• You're not accounting for all the costs and assume rental income will be pure profit.

• You're buying in a building with weak rental demand or high HOA fees that eat into returns.

How to Budget for Slow Months

Ski season drives the majority of rental income in Copper Mountain. November through April generates 70 to 80 percent of annual revenue for most properties.

Summer bookings help, but they're less consistent. Shoulder seasons in May, October, and early November are slow.

Build a cash reserve. Keep 6 to 12 months of expenses saved so you can cover mortgage, HOA, and other costs during slow periods without stress.

Don't assume you'll book every available night. Even well-managed properties have gaps in the calendar. Plan for 60 to 75 percent occupancy in a strong year. Anything above that is a bonus.

Why Transparency Matters

We've owned and managed vacation rentals in Copper Mountain for 20 years. We've seen owners succeed and we've seen owners struggle.

The ones who succeed go in with realistic expectations. They budget for all the costs. They plan for slow months. They maintain their properties. They work with property managers who care about results.

The ones who struggle underestimate expenses, overestimate income, and don't have a cash cushion when things go wrong.

We're transparent about costs because we want our clients to succeed. If the numbers don't work for you, we'd rather tell you upfront than watch you struggle after you buy.

Let's Run the Numbers Together

If you're considering buying a vacation rental in Copper Mountain, let's sit down and run the actual numbers for the property you're looking at.

We'll show you realistic rental income projections based on comparable properties. We'll break down all the costs. We'll help you figure out if the investment makes sense for your situation.

Reach out to us at larkmountain.com. We'll schedule a free property analysis and make sure you're going in with your eyes open.

Owning a vacation rental can be a great investment. But only if you know what you're getting into.