Pandemic Spikes Second Home Interest in Steamboat

Owning a second home has never held more appeal, especially in Steamboat. Before the pandemic, demand for second and primary homes had been growing at similar rates. But with the longevity of the pandemic sinking in, interest in second homes has grown twice as fast as for primary homes.

Motives For Second Home Purchases Can Vary

If the idea is to generate rental income, there have been changes to tax laws in recent years. A property that is rented out for fewer than 14 days per year is exempt from rental income being reported to the IRS. However, rental expenses are then not tax deductible. When a property is rented for 14 days or more per year, but is rarely used for personal use, rental expenses can be deducted. Lastly, a property that is occupied for more than 14 days, but is seldom rented out is considered a personal residence. In this case mortgage interest and property tax can be deducted, but the amount is capped.  If the motive is for personal use, like all mountain towns in Colorado, weather is one of the biggest considerations. Properties need to be winterized to withstand a harsh winter, and gardeners beware, Steamboat gets an average of 59 frost-free days in summer. Enlisting an experienced property manager may save a great deal of time and money.

Steamboat Offers Array of Options

If owning a single family home or condo outright is not an option, Steamboat offers opportunities for fractional ownership, vacation clubs and condo hotels. Local organizations such as Main Street Steamboat, Strings Music Festival, Steamboat Springs Winter Sports Club and Steamboat Resort Corp. offer volunteer opportunities, which gives second home owners a chance to get involved and meet other members of the community.