Keystone Property Management -
Frequently Asked Questions (FAQ)
These are the most common questions we receive about our Property Management Services in Keystone Colorado.
Q: I am looking to buy an investment property in Keystone. Where should I buy?
A: We rent properties close by the slopes at Keystone as well as further away near the Keystone Golf Courses. Our experience has shown that quality Keystone condos closer to the ski lifts have more rental potential than Keystone condos further away. The biggest factor in being able to rent your Keystone condo is to make sure that it is UPDATED and has quality furnishings and decor. Regardless of where it is located, we will be able to make your Keystone investment property work for you. We have all of our live statistics on a web site that you are welcome to view. However, we would like the opportunity to talk to your first, so please give us a call and we will be happy to give you access to that web site. This is a huge aide to anyone looking to buy a condo in Keystone.
Q: Is there a specific area in Keystone that you would recommend for the best investment?
A: Our typical answer is that you should shop for a property based on your needs. If you're young and plan on starting a family, you might want to think about a 1 bedroom instead of a studio condo so you don't find yourself wishing for more space within a year or two. Same goes for a 1 bedroom. If pure investment is on your mind and personal space is not an issue, take a look at River Run Village. There are a number of reasons such as moving of the gondola that will make properties in River Run much more desirable in the future. Long range investment opportunities exist near the lakeside village and mountain house as well with some speculation as to why they are moving the lift.
Q: What type of Keystone condo should I buy? Studio, 1 bedroom, 2 bedroom, 3 bedroom?
A: Experience has shown that the highest demand is for 2 or more bedroom Keystone condos, then 1 bedrooms, then studios. This also depends on location. Slope side is the biggest factor when guests choose a condo for their vacation in Keystone. The closer to the slopes, the much better your rental potential is regardless of what size it is.
Q: Why are HOA dues so high?
A: Homeowners Association (HOA) dues are definitely high in Keystone. This is due to the high maintenance costs in the Keystone area. Cold weather most of the year is hard on building exteriors and snow removal is a big expense. If the property has a pool or Jacuzzi tub, costs are high for maintaining them... especially if they are located outdoors. The closer you are to the slopes in Keystone, and the more amenities that are available at the property, the higher the cost.
Q: Why is your 25% commission so low compared to all the other Keystone property management companies? What's the catch?
A: We also have shopped around for a Keystone property management company for our own Keystone condos and were downright shocked by the 45% - 65% costs. We have gone to great pains to make sure we run our business efficiently and effectively from the very start to keep our costs low. We work for you, the owner, and do not feel that we should be robbing you at the same time. There simply is no "catch" to it. We run the smoothest and most efficient operation in Keystone...once a guest is in our reservation pipeline, very little goes into ensuring a quality stay. As strange at it may sound, we have automated the processes of marketing, taking reservations, paying owners, and customer service.
Q: Why does everyone else charge 45%-65% management fees?
A: Since we have entered into the travel business we have learned quite a bit. It takes much digging to get the right information, but it's all out there. Did you know that when you book a hotel online through a place like Expedia, Travelocity, or even Overstock Travel, that the actual hotelier has to pay a 20% commission for your reservation? Amazing, huh? So...take that 20% add in taxes and any other commission that the hotelier has to make in order to survive. Yup....the percentage gets really high really fast. How are we different? We do our own marketing...and while we are not reaching the billions of people they are, we can still bring better service to owners and guests alike while keeping our management fee AFFORDABLE to owners. Around every corner is a reseller that wants to pass guest leads to us...but they also want to charge for it. While we do work with travel agents on a limited basis, more than 95% of all bookings that we take come direct and not through a reseller. If the commission demand is too high, we'll pass on the booking. While the potential is there to get tons of bookings through the travel agent networks, we take great caution to who we work with and how much we're willing to pay for those bookings. Sometimes it's just better to do the dirty work yourself. We're no strangers to marketing.
Q: What about all these property managers who offer different levels of service? Do you offer a customized level of service?
A: We are proud to say that we do not offer and "Tiers of Service" in any of our programs. There is no pun intended here, but truthfully, there is no reason why you should play the roulette game that insurance companies, cell phone providers and everyone else puts you through. We do not feel that if you make the wrong choice that it should cost you dearly over the long term or that you should be locked into a contract you can't escape. We feel strongly that we should be partners with all of our owners in making sure that your property is living up to its fullest investment potential. Therefore, we do not offer any customized programs that do not make sense or fit with our owners needs. Instead, we have a single program that is well thought out and dynamic enough accommodate any goal of any of property investors. How does this work? Very simple. We offer a 25% management fee for everyone with incentives to save even more if you take your own bookings. By working together, your property will bring in it fullest potential revenue-wise and you're not stuck paying a higher management fee if you chose the wrong program or plan to begin with. Furthermore, we are able to simply tweak a few factors to adjust and match your goals exactly. In addition, we offer the least sticky contract of anyone in Summit County. Don't like our program? No problem, we will not be a pain to leave...so far none of our owners have! What we would like to know is why the cell phone providers and insurance companies of the world haven't figured this out yet??!!??
Q: You have been in business for only 7 years. What makes you think you can make such huge changes in the local industry?
A: Combined with years of hands-on industry experience in management, engineering, sales, marketing, and human services, we started this company with a simple business plan and a vision to make some major changes in Keystone Colorado. In just a few short years, we have turned some heads and made some waves. Our process works and our competitors are trying to keep up with us. From copying our web site headlines and keywords, to lowering management fees, to making failed attempts at copying our entire business model, it is clear that the defined leader is in managing vacation properties in Keystone Colorado is SummitCove.com. When you are the defined leader in what you do, there is simply no question who you do business with.
Q: What do I get for that 25% commission?
A: You can walk away from your property and not have to worry about it. We take care of all advertising, marketing, phone calls, linens, cleaning, credit card fees, collection and paying of required taxes, etc. You can literally not worry about at thing. We will keep a watchful eye on your property, let you know of any problems that arise, and do our best to make you as much money as possible on your Keystone investment property while still making your guests know they are getting a great value.
Q: What am I responsible for as an owner?
A: The biggest thing you are responsible for is making sure that we are aware of when you want to use your property...that way we can be sure that I will never double-book it. When you visit your property from time to time, it saves us time and saves you money if you can continually improve your property by doing small things like painting, and fixing of minor things.
Q: I feel like I am being charged for every little thing with my current Keystone Property Management company. They are “Nickel & Diming” me for everything. How are you any different?
A: “Nickel & Diming” is a sneaky way for most property managers to make extra money. We make sure that your condo is ready in the beginning so that there are no surprises later on. Sure....there is the occasional clogged sinks or blown out pilot lights on fireplaces, but we don't call in an expensive plumber or service professional right off the bat. We'll take care of it since your property will automatically be part of our maintenance program for free. If a problem arises multiple times, we will contact you first and work with you to resolve the issue so it doesn't keep happening. We do not charge a surprise “Marketing Fee” right in the middle of slow season, you will be well aware of any “deep cleanings” that take place, and we do not charge for unneeded repairs to your Keystone property. What DO we charge for? Not a whole lot. Minor things like a clogged sink or leaky faucet that occasionally pops up we'll take care of for free. If there is something major, like having to use a snake in a drain, or replace parts in a fireplace, we will charge the owner. We will keep you well informed of any maintenance issues that will cost you money. An annual deep clean is required using our management program, but since we are so successful in getting rentals, it is not uncommon to have to do a deep clean mid-way through the ski season.. Deep cleans are billed hourly and include a carpet clean and cleaning of all comforters and blankets. In order to offset the overhead costs associated with your property, we only ask for the use of your property for a few nights per year during the slower times of the year.
Q: What costs am I responsible for as a Keystone Property owner?
A: The only cost we require is a deep cleaning prior to start, but will be happy to waive that if the property is already in great shape and very clean. In some cases, we will require some repairs or improvements to your Keystone condo before we will take management of it for you. We do not charge any fees for starting with us...it is our responsibility to show you what we can do for you first.
Once you are up and running, the cost responsibilities of the owner are repairs and maintenance that are above and beyond the capacities of our maintenance program. You are also responsible for maintaining your property, and any emergency repairs that may arise. In such a case, we will send out a handyman first to see if it can be fixed in a less expensive manner than hiring a professional from the start. 90% of the time, our handyman can take care of it and we can avoid large repair or emergency bills for you. When we talk of maintaining the property, we mean taking pre-emptive measures like replacing a water heater that is 10 years old BEFORE it springs a leak, replacing old and broken furniture, etc. If you are out of state and cannot accomplish these things, we can do it for you. We have a full staff of handy people readily available for you and at an inexpensive rate. We also have a list of painters, plumbers, and other professionals if you want to do renovations to your property.
Q: How do you advertise?
A: Most of our advertising is done via the Internet. Please go to a search engine of your choice and try to find lodging in Keystone. For that matter, try to find some specific thing to do in Keystone. Chances are that we'll be in the first page for most any search you do related to Keystone Colorado. In fact, can you even find Keystone Property Management? Probably not. SummitCove.com is typically on the first page of all of those searches, and we are moving up steadily. We use our unique marketing technique in many different ways to benefit our owners.
Q: Yikes! You advertise on the Internet? What kind of renters do you get?
A: Yes…the Internet can be a scary place, but the vast majority of our guests are families looking to get away for an enjoyable vacation. Although we cannot screen out all bad guests, we have set rental policies and rules that dramatically reduce hard wear and tear on your property. Requirements of the responsible guest include no smoking, no pets, and an age requirement of 25. If your property does sustain damage beyond normal wear and tear, we will charge an amount to offset the repair / clean-up costs for you. Ultimately owners are responsible for the costs to repair damage from renters if we have exhausted our options for recovery of damages. In addition to the age requirement above, we call each and every guest personally as soon as possible when they book online and again about 1 week prior to arrival to remind them of the rules and expectations. We can also create minimum night stays for your condo at your request, which will reduce those "1 night party" types of people. We have found this method of contact with our guests to greatly improve the quality of guests that we obtain, and it also enhances the guest experience. From our experience, we know the times of year to be extra cautious about potentially bad renters.
Q: Can you make my property “Cash Flow” so that I have extra income?
A: That depends on your particular situation. If you have little or no mortgage, we probably can. If you have fully financed property and high HOA fees, we probably can’t. We make no promises to the amount of income you will make for any given time period...those factors such as snowfall, draught, terrorism, etc. are simply out of our hands. We can promise you that we will do our best to market your property and bring in as much as we can 100% of the time. As a VERY general rule, you can expect to gross 10% of the value of your condo per year. This is a VERY GENERAL rule and may not hold true for all properties. Condos that are slope side typically do not fall under this general rule.
Q: Can I use my own property? What costs are involved?
A: Absolutely! We provide a homeowners login section on our web site where you can book your own property free of charge. We will have our cleaning staff check out the property after your departure just to make sure it is clean and ready for the next guests. If your property is not clean, or you wish to have us clean it for you, we will happily do so, for the normal cleaning fee. Use your property as much as you like, or not at all…it’s up to you.
Q: What if I find my own renters? Will you charge me a commission?
A: You are welcome to find your own renters. We will take care of check-in, check-out, emergency calls, and key control for you. We charge a discounted management fee of 15% when you find your own guests. Just use the homeowner login on the web site and fill in the details of the reservation. Once your guest is entered into our system, they become our responsibility and we execute the rental agreement with your guest, collect and remit all applicable sales and lodging taxes, take all emergency calls, and provide the same level of service that we do for our own guests. You can simply not worry about your guest and spend your time looking for the next guest! Our system is flexible, easy and we don't play games with different levels of property management service. We only provide the best service to everyone.
Q: What if I want to send my folks or a friend to my condo?
A: No problem. You are welcome to send your guests that are generating no revenue for you to your getaway in Keystone. We'll take care of them just like anyone else, give them keys, take care of any emergencies, etc. No charge. That's right....if you make no money, we don't either, but we'll still do everything we normally do. We do not charge a "check-in fee" to you or anyone else. The only stipulation is that a cleaning must be paid either by you or your guest since everyone's definition of clean is different.
Q: I need income! How quickly can you get me going?
A: We will work as quickly as possible to get your property rented. However, we are more concerned about the quality of the properties that we handle over the quantity. We are focused on attracting repeat guests, and as a result all of our properties are required to have quality furnishings, new paint, and be in very good shape generally. We will personally meet with you and take a tour of your property. We will give you some guidelines of what things need to be changed for us to be able to manage your property. If all is well, we will take pictures of your property and have you up and running within 7-10 business days. The more marketing time you can give us, the more likely it is that we will be able to get guests into your property.
Q: I have a property located outside of Keystone. Will you manage it for me?
A: We are only focused on the Keystone area at the moment. We will be expanding to other areas in the future, so please keep an eye on our web site for details. We manage properties as far West as Swan Mtn Road and US Hwy 6, known as the Summit Cove neighborhood, but are picky with those properties due to the age of some places. Further into Keystone, we manage properties clear up into the most Eastern parts of Keystone. If you own a quality property nearby, or in Keystone, please inquire.
Q: Why do you only concentrate your business in Keystone Resort?
A: Unlike all of our competitors, we choose to strive and be the absolute best in a single area rather than spread ourselves too thin and be "just alright" in all areas. Our marketing is extremely strong for Keystone. Expanding into another area is not just a matter of opening up shop and tweaking things a bit, it's a matter of starting all over again from scratch and years of getting the marketing engine fine tuned. Keystone Resort is our passion and we can do a better job than anyone for your investment property and will not lower our level of service trying to expand into other areas....yet.
Q: What are your rental statistics and balance sheet numbers?
A: In general, we are extremely competitive with our rentals and can work with you according to your goals for your property. We will gladly disclose our rental statistics with exact numbers if you are looking to buy a property and are working with our preferred realtors, or once we have inspected your property for potential addition to our rental management program. Give us a call and we'll be happy to speak to you. Our rental statistics are all live online through a password protected web site. Nothing to hide, we would just like to talk to you first.
Q: How do you distribute the rentals among your pool of properties?
A: The guest has complete control over which property they choose when booking online. When browsing our web site, we have a featured property chosen at random on the home page each time the page is viewed or refreshed. When displaying the list of properties the order in which the properties are listed is pulled from the database in random order such that no property is booked solid, while others remain empty. The quality of the property and how well that is portrayed in pictures has much to do with how well your property will sell. We do not solely rely on randomization to keep everything fair. We also view our property booking calendars on a daily basis to make sure the level of reservations remains fairly balanced. When guests call, we always match the condo to the guests needs and requirements. Still have doubts as to how your property might fare in the pool? Contact us and we'll prove to you that nobody is left out in our system. Ask our competitors how they manage the pool....chances are they will be stuttering with an answer. Furthermore, we are constantly developing our own web site to allow people to quickly and easily find the property they are looking for. Thousands of hours have gone into the research and development of our site that has left our competitors in the dust.
Q: How do you determine prices?
A: We do detailed research into how much we think we can rent your property. We do comparisons with our competitors and use our past experience with other similar properties to determine the seasonal pricing. Owners are allowed to have input to the pricing and we can adjust it depending on your individual goals for your property.
Q: You keep mentioning these few nights per year to offset costs. How do I know that I am protected from you not taking my highest revenue nights?
A: Excellent question. We are committed to being a fully owner-oriented management company. We are owners in this too and know what is fair and what is not fair. By contract, we do not allow ourselves to take any nights during any major holiday such as Thanksgiving, the holiday season as defined on our web site for any property, Presidents Day Weekend, and the entire month of March of any year. Furthermore, these "comp" nights can be no more than 3 at a time. When we land a "big fish" reservation of 12 nights, we want YOU to reap the revenue from it. We are only interested in the smaller reservations during the lower seasons to fulfill our objective of cover maintenance and marketing costs.
Q: I am looking to buy an investment property in Keystone. Where should I buy?
A: HA! You took the time to read this far. Okay...we'll give it to you. There is a phenomenal investment opportunity right now to buy properties in either Red Hawk Lodge or The Springs in River Run Village. Why? Summit County recently approved a proposal from Vail Resorts Inc. to move the gondola at River Run Village into the Hunky Dory parking lot. It's not often that a property that is "walk to lifts" becomes a true ski-in / ski-out. We have already seen a decent rise in property values in these locations due to this recent approval from Summit County, but once the dust settles and the construction is complete, you can only imagine where property values and rental potential will be! Do your own homework and take our opinion for what it is....just an opinion.
UPDATE: Construction has started on the moving of the gondola in River Run. As stated above, the best opportunities exist in Red Hawk Lodge and The Springs. IF you can find any condos available, Black Bear Lodge and Jack Pine Lodge are probably the best, but they don't seem to turn over very often. Perhaps the owners of those properties know what they have and don't want to give it up. Also, recent plans have been submitted to Summit County to begin building on a new complex at the base of the new gondola. It's called One River Run and will polish off Development in River Run. There is also some speculation as to why the gondola is being moved...be sure to read up and do your homework. Keystone has some good times ahead.
Q: Any other suggestions as to where to buy? River Run is really expensive as it is right now...did I miss the boat?
A: You definitely did not miss the boat in Keystone. The boat is just pulling into the dock and loading up! People will tell you that Keystone is already at 70% build out and that not much more can possible make Keystone any better. Do your homework.....don't just trust some schmuck who tells you things you don't want to hear! Take a look at the available designated ski terrain for Keystone on a USGS map. That'll tell you how much "build out" is complete for Keystone very quickly. (Keystone has the potential to be one of the largest resorts in Colorado)
Ever notice how many free parking lots Keystone has? The land is all owned by Vail Resorts. This is valuable real estate folks! Did you know that Vail has less than 50 free parking spots in the whole town? Why should Keystone be any different? It simply doesn't make sense to give free parking to people to go skiing when those parking lots could be turned into income-generating condos or retail space. Think like a big company, and the answers become crystal clear. Compare prices of real estate with neighboring resorts, and the answers become crystal clear. We strongly feel that Keystone IS the best investment in Colorado....and we're here to prove it to you in our unmatched rental numbers.
Q: What areas of Keystone seem to rent the best?
A: We get asked this question so frequently that it warranted spending some time compiling statistics and seeing what it all meant. The result? A simple rental heat map of Keystone Resort. The red or "hotter" colors represent the highest demand areas for rental condos during the ski season. The blue or "cooler" colors represent the less attractive areas. However, keep in mind that this is NOT TO SAY that if your condo is located in a "cool" zone, it will not rent. It simply means that it takes more marketing time to rent and maybe not for a high price like you would see in a red zone. We can and will rent your property....it just a matter of if it books for Christmas Week in July or September.
