Big Bear Cabin Annual Expenses
Before purchasing any investment or large asset most buyers grab a piece of paper and start jotting down broad strokes regarding revenue and expenses. Great tools such as Excel have really improved the forecasting of these figures.
When it comes to vacation rentals in Big Bear, there is one cold hard fast rule.
Big Bear Cabin Rental will cost you more money than you think just as a boat always does. The good news is a Big Bear Cabin should appreciate where as a BOAT “Bust out another Thousand” will always depreciate. They both are great fun for the family and friends and will help develop memories that all will cherish for decades. The boat will always lose money but the cabin will go up in value.
Here is a general lists of costs associated with buying a Big Bear Vacation Rental.
Start-up Costs – What kind of deferred maintenance does the cabin have? The city does require your Big Bear Cabin to pass an annual inspection that costs $235. Prepping for this inspection can cost you money. The main costs are approved handrails, smoke detectors, fire-extinguishers, etc. Give us a call and we can give you a rundown of all the costs free of charge. After you sign a contract with us, we do perform a free pre-inspection of your home so you can determine what it takes to rent your home.
Not so apparent costs – Annual Abatement costs, Window Cleaning, Carpet Cleaning, Deep Cleaning, Snow Plow, Hot Tub Costs, City License ($235 per year).
The standard costs – Heat, Electric, Water, Cable, Internet.
Here at Destination Big Bear we manage and own more than just a few cabin rentals here in Big Bear and can give you exact costs or at least very very close estimates of each cost stated above. Just give us a call.
Do not forget that if you have a home that is getting a lot of rentals you are going to have other expenses that fall in the wear and tear column. For example, you might have to paint an area that is 18 inches tall in all your walkways and hallways because people’s travel bags rub up against them. This should be done twice a year and can only take 1 to 2 hours even for the largest house if you are organized with your paint. Just as bags rub walls, luggage with wheels seem to chip the corners of room and doorways when people pull them through the home.
It is best just to understand that a home can be maintenance and a Vacation Rental can be more maintenance. It is still worth having a personal use asset where you can create memories with your family and get help to pay the mortgage.
Utilities have a base rate and the number of days you rent your home per month is not a direct linear equation. What that means is if you rent your home 8 days a month in the winter and your utilities total $400.00 and then next month your rent your Big Bear Cabin 16 days the utilities will not be $800, they will be lower. You have a minimum fee you pay for each utility and once a home has been heated it is much cheaper to keep it at that temperature than letting it cool down and then re-heating.