A ski property is a huge purchase, so it is only natural that you would want to be confident that you’ll get the maximum return on your investment (ROI). So, from understanding the ski property market to prepping for rentals, here’s some strategies to help you maximise your earnings.
Understanding the Ski Property Market
Location
While ski-in/ski-out chalets inevitably attract holidaymakers, helping to maximise your ROI, there’s more to consider than simply how quick the trip to the slopes is.
Snow-sure: Due to climate change, many of Europe’s favourite ski resorts have seen lower snow levels than anticipated in recent years. To avoid this, research what the snow fall has been like in the area that you are interested in. High-altitude resorts, such as Val Thorens or Tignes, Hintertux Glacier and Zermatt, are all safe bets.
Dual season appeal: Outside of the ski season, what is there to do in your resort? While hiking is the first answer for many resorts, you might want to look somewhere that has a little more to offer. That might be golfing, spas, shopping or a fantastic summer festival scene. For example, St Moritz has a wonderful village filled with galleries, museums and a fine dining season to beat.
If you want to maximise the dual season appeal, you may want to base your search more southernly, say the Dolomites in Italy, or even Greece or Spain. But it’s worth noting that sometimes those locations that flourish in summer may have a suffering ski scene in winter, so you’ll need to weigh up your priorities.
Easy access: You’ll also want to look into what the transport links are, throughout the year. Chambéry is under two hours away from favourite ski resorts Chamonix, Courchevel and Valmorel. Plus, as people become more climate-conscious, travelling by train is becoming more favourable, so find out how far the nearest station is.
Property features
It is not just where the property is that matters, but what the home itself is like. With key, desirable features included, you can turn many a holidaymakers’ head.
High-speed broadband: Since the pandemic, a large number of people work remotely, and if you can do so, why not from the mountains? For this reason, a fast, reliable broadband is super sought-after by buyers and holidaymakers alike.
Mountain views: Having breathtaking mountain views is a major selling point. Look for south-facing balconies for the best sunlight too.
Smart features: While some buyers are drawn to the charm of an older chalet, having smart features in a modern property can be a real box ticker for others. This could be a tight home security system or a suave entertainment system.
Rental Strategy Optimization
It is certainly possible to successfully rent a ski property out yourself, especially if you are based nearby. However, many choose to go for an agency, who will take a cut of the profit.
They can take care of the property in between stays, be a keyholder, and even market the home online for you. If you want to rent it out yourself, set up an Airbnb account, take some high-quality photographs and make some noise online. Encourage visitors to pop a review online, as that goes along way.
Before you rent out, do some market research into the going rates of homes around you and offer dynamic pricing based on demand, seasonality, and local events that might attract visitors. If you are planning to also use for home your own holidays, you might want to plan your trips outside of the peak season, so that you’re not missing out on the best rental yields.
To avoid unnecessary losses, it’s important to have a clear cancellation policy in place.
Property Upgrades and Maintenance
If you’re the type of person who has a faulty tap that you reckon you’ll get around to fixing but never actually have, try not to be that way with your ski home.
Regular maintenance and targeted upgrades enhance guest experience and mean that you can charge a premium. Don’t let a small thing knock off a star from a visitor’s rating. If you struggle or don’t have the time to keep on top of that kind of thing, consider a management company.
Financial Planning and Cost Management
After buying a property that is perfectly positioned between the airport and the slopes, installing surround sound and booking in holidaymakers, the last thing you want is for the sums to not add up at the end of the day (or season).
One way to help with your budgeting is to contact a currency specialist. Exchange rates fluctuate every day, and the rate can move against you, meaning that the rent ends up being quite different to what you were anticipating.
Our partners, Smart Currency Exchange, can set up a forward contract, which enables you to lock in an exchange rate for up to twelve months, making your finances much more predictable.
Ensuring that you get the maximum ROI for your ski property comes with a little planning and is a tad more complex than just putting a deposit down for the first chalet that catches your eye. That being said, bearing things in mind like the transport links, length of season and the appeal of the property itself all pay off in the long run.
