Research conducted by Savills, in conjunction with HomeAway, has concluded that rental potential is an important factor for more than half of buyers of ski properties.
When asked about the intended use of the property at the time of purchase, arounda third of ski property owners surveyed who purchased their property in the 1990s intended to rent it out for short-term and holiday rental purposes. By 2019, this had increased to over half (54 percent) of all owners.
The primary reason for renting out a ski property is to help cover the mortgage and taxes; while 30 percent did so as a secondary source of income, and 27 percent to help cover the cost of upkeep, the Savills research department said.
In terms of mortgage costs, 60 percent of owners surveyed cover 80 to 100% of their mortgage payments with rental income. Meanwhile, renting out their ski property is a primary source of income for just six percent of owners surveyed.
The median annual gross yield for ski properties, before considering the mortgage or any other costs, in the survey stood at 5.5 percent. On average, ski properties in North America had a higher yield than those in the Alps, with a median gross yield of 6.2 percent and 4.2 percent respectively.
On average, ski properties in the survey were rented out for 19 weeks of the year, bearing in mind that the average ski season is 20 weeks of the year. In terms of what renters want in services, internet access is more important than high-speed internet access, according to Savills Research in its 2019/2020 Ski Report.
Beyond the internet, keeping warm, security, TV and a place to park the car, rank among the most essential factors for renters. One factor which owners place a higher level of importance on compared with renters is a patio or deck, which 29 percent of owners deem essential compared with just seven percent of renters.
When it comes to booking policies, owners and renters are less aligned. ‘Children welcome’ is the most common policy in the survey offered by owners of ski properties, with 88 percent offering this. But, only just over half (53 percent) of renters deem this important.
Savills has been selling property across the Alps for more than two decades and is the first international property company to publish an annual Ski Report, tracking sales data and market trends. The latest is the company’s 14th such report.
Operating from dedicated offices in Verbier, Courchevel, Méribel and Zell am See, and with Associate agents in Morzine, Chamonix, Val d’Isère, Kitzbühel and Saas Fee, Savillss provide valuation, development consultancy, sales and marketing, and rental services in these and other prime ski resorts. To download The 2019/2020 Ski Report from Savills Research: https://mail.google.com/mail/u/0/#search/savills+ski+report?projector=1
PHOTO: Savills office, Verbier
