Short-Term Rental Math in Beaver Creek

Are you weighing a Beaver Creek condo or townhome for short-term rental income but unsure how to run the numbers with confidence? You are not alone. Resort markets reward precision, and small assumptions can swing your returns. In this guide, you will learn a simple, practical way to model revenue, costs, and risk so you can compare properties and move forward with clarity. Let’s dive in.

Beaver Creek STR basics

Beaver Creek is a purpose-built mountain resort in Eagle County with winter skiing as the main demand driver and summer leisure as a strong secondary season. Winter holidays, three-day weekends, and school breaks tend to book early and at premium rates. Summer brings shorter stays with solid weekend demand, while late spring and early fall are softer.

Your underwriting should mirror this pattern. Plan for strong winter weeks, steady summer weekends, and conservative shoulders. Model calendar effects like President’s Week and spring break because they materially shift both average daily rate and occupancy.

Seasonality and calendar

Month-by-month modeling beats a single annual average in Beaver Creek. Here is how to frame it:

• Peak winter: mid-December through March. Expect longer, often weekly stays around the holidays and school vacations.
• Summer: June through early September. More weekend and short mid-week bookings; occupancy lower than winter but rates can hold for premium units.
• Shoulder months: late spring and early fall. Lower occupancy and ADR. Per-night cleaning cost can bite more when stays are shorter.
• Events and holidays: Federal holidays and regional school schedules matter. Build your calendar with these in mind and book lead times accordingly.

Model revenue drivers

Focus on four levers: ADR, occupancy, length of stay, and booking mix.

• ADR by month. Price varies by bedroom count, slope access, view, and amenities such as hot tub, fireplace, and parking. Use comps and a seasonality curve rather than one annual ADR.
• Occupancy by month. Align with ski weeks, summer weekends, and softer shoulders. Block out owner-use nights to avoid double counting.
• Length of stay and minimums. Many HOAs and holiday periods require weekly or multi-night minimums. Longer stays reduce turnover costs.
• Booking mix. Airbnb, VRBO, Expedia, and direct bookings carry different fee and cancellation profiles. Direct bookings can trim platform fees but require marketing or a strong manager.

Key formula:

• Gross rental revenue (annual) = sum over months of (ADR_month × nights_available_month × occupancy_rate_month).

Build your worksheet

A simple 12-row worksheet keeps you disciplined and flexible. Create one row for each month with these columns:

• ADR_estimate
• Nights_available (after owner use and maintenance blocks)
• Occupancy_rate
• Gross_revenue_month
• Cleaning_fees_collected (if you pass through cleaning)
• Net_revenue_month

Then add an annual summary for NOI, debt service, cash flow, cash-on-cash, and cap rate. Use three scenarios: conservative, base, and optimistic.

Itemize operating costs

List every cost that touches a booking or a month on the calendar. Treat cleaning and platform fees as variable; treat HOA and insurance as fixed.

Operating and variable costs:

• Cleaning per stay. Charged per turnover, not per night. If you pass this through to guests, your net may be zero, but check manager policies.
• Consumables and supplies. Toiletries, coffee, smallwares, and linen replacement amortized over time.
• Utilities. Electricity, gas, water, internet, and cable. Heating spikes in winter.
• Laundry/linen service. If outsourced, price per turnover or per month.
• Platform host fees. Airbnb host fee is often about 3 percent; VRBO varies. Add payment processing around 2 to 3 percent.

Fixed and recurring costs:

• HOA dues. Many Beaver Creek buildings have meaningful monthly dues and rental policies. Confirm actuals and rules.
• Property management fee. Full-service managers in resort markets often charge about 20 to 35 percent of gross rental revenue, depending on service level.
• Property taxes and insurance. Budget STR-specific coverage; it can cost more than standard landlord policies.
• Replacement reserves and capex. Plan for furniture refreshes, appliances, and big-ticket items. Set a monthly reserve line.
• Accounting, licensing, and compliance. Registration, business license, and tax prep.

Taxes and remittances:

• Transient occupancy and lodging taxes. Confirm Eagle County and any municipal rules. Platforms may remit some taxes, but you or your manager could remain responsible for filings or other assessments.

Use clear formulas

Set up your spreadsheet with these core calculations:

• Nights_available_month = days_in_month − owner_use_days_month − blocked_days_month
• Booked_nights_month = Nights_available_month × occupancy_rate_month
• Gross_rental_revenue_month = Booked_nights_month × ADR_month
• Number_of_bookings_month ≈ Booked_nights_month ÷ avg_nights_per_booking
• Cleaning_cost_month = Number_of_bookings_month × cleaning_cost_per_booking
• Platform_fees_month = Gross_rental_revenue_month × platform_fee_rate
• Management_fee_month = Gross_rental_revenue_month × manager_fee_rate
• Gross_to_owner_month = Gross_rental_revenue_month − Platform_fees_month − Cleaning_cost_month − Management_fee_month
• Operating_expenses_month = utilities + HOA_month + insurance_month + laundry + supplies + marketing + replacement_reserve_month
• NOI_annual = sum over 12 months of (Gross_to_owner_month − Operating_expenses_month)
• Debt_service_annual = annual mortgage payments
• Cash_flow_after_debt = NOI_annual − Debt_service_annual
• Cash_on_cash_return = (Cash_flow_after_debt ÷ cash_invested) × 100%
• Cap_rate = NOI_annual ÷ purchase_price

Price and clean with length of stay in mind

Because cleaning is charged per stay, not per night, your average nights per booking matters. Short stays raise your cleaning cost as a share of revenue. During holiday weeks with 7-night minimums, your cleaning cost per night usually falls. In shoulder months, higher turnover can erode margins if your ADR dips.

A simple check:

• Estimated cleaning cost per night = cleaning_cost_per_booking ÷ avg_nights_per_booking.

Taxes and who remits

Lodging and sales taxes are part of every STR in Eagle County. Platforms sometimes collect and remit certain taxes, but the owner or manager may still file or remit other assessments. Confirm the exact tax rates and responsibilities for your unit, and verify whether your manager handles filings.

Run scenarios and sensitivity

Model three cases to frame risk and upside.

• Conservative. Lower ADR and occupancy, higher vacancy in shoulder months, and a higher management fee.
• Base. ADR and occupancy that match current market medians for comparable units.
• Optimistic. Premium ADR due to superior location or amenities and stronger occupancy driven by professional revenue management.

Add a quick sensitivity:

• Show how cash flow and cash-on-cash change with plus or minus 5 and 10 percent ADR and plus or minus 5 and 10 points of occupancy. This reveals the variables that matter most for your target building and bedroom count.

Find your break-even

Use break-even checks to set guardrails on price and occupancy.

• Break-even occupancy at target ADR = (Fixed annual costs + Debt service + Target net income) ÷ (ADR × nights_available_variable − variable costs per night).
• Minimum ADR at assumed occupancy: solve revenue = total costs for ADR.

These formulas help you decide if a property’s HOA, management fee, and utility profile fit your goals.

Regulations and HOAs

Before you set any income target, pull the rules.

• Eagle County and nearby municipalities may require short-term rental licensing and define how lodging and sales taxes are collected and remitted. Procedures vary.
• HOA rules can set minimum stays, require registration, limit rental windows, and add parking or guest policies. Ask for CC&Rs and the rental policy for the specific building.
• Safety and insurance. Confirm smoke and CO detector requirements, egress standards, and STR insurance coverage that fits Colorado mountain properties.

Vet managers wisely

Your manager is your margin. Build a shortlist from active Beaver Creek listings, regional associations, and owner referrals. Then run a tight process.

Request and review:

• A current P&L and occupancy by month for a truly comparable unit.
• A monthly booking calendar showing lead times and channel mix.
• A clear fee schedule in writing. Confirm whether cleaning or vendor costs are marked up and whether setup or marketing fees are charged.
• Who handles licensing and tax remittance. Ask for proof of business registration and tax ID.
• Proof of insurance and damage protocols, including security deposit practices.
• Contract terms, termination rights, transfer of listings on exit, and reporting cadence. Confirm technology, pricing tools, distribution channels, direct-booking capability, and owner portal access.

Watch for red flags such as vague reporting, refusal to share recent P&Ls for comparables, or long contracts without performance protections.

National vs local managers

National firms bring scale and broad distribution. Local managers often excel at on-the-ground service and HOA-specific nuances. In Beaver Creek, either can work if the team is transparent on fees, strong on yield management, and accountable on guest operations. Validate marketing reach, dynamic pricing, and housekeeping standards regardless of size.

Plan for risks

Resort income can swing. Model these risks explicitly and carry reserves.

• Weather variability and macro travel trends can move occupancy and ADR.
• Reputation effects mean a few poor stays can reduce future bookings.
• Capital surprises include HOA special assessments and mountain-climate wear on roofs and mechanicals.
• Regulatory changes can adjust licensing or tax treatment. Run contingency cases and keep liquidity.

A simple next step

Build your 12-month worksheet, add three scenarios, and pressure test your ADR and occupancy with a sensitivity check. Pull HOA rules, confirm taxes and who remits them, and interview at least two managers with comparable-unit P&Ls. With the right property, management, and pricing, Beaver Creek can deliver both lifestyle use and income potential.

If you would like a confidential second set of eyes on a specific unit, or an introduction to vetted local managers and insurance providers, reach out to A.K. Schleusner. We are happy to help you align the numbers with your ownership goals.

FAQs

What drives short-term rental revenue in Beaver Creek?

• ADR by month, occupancy by month, length of stay and minimums, and your channel mix all drive outcomes. Model each month rather than using a single annual average.

How should I estimate cleaning costs in my pro forma?

• Cleaning is per stay, not per night. Estimate bookings as booked_nights ÷ average nights per booking, then multiply by cleaning cost per booking to get the monthly total.

What is a typical property management fee in resort markets?

• Full-service managers commonly charge about 20 to 35 percent of gross rental revenue, with terms and inclusions varying by company and service level.

Do platforms handle lodging and sales taxes for Eagle County?

• Platforms may remit some taxes, but owners or managers can still be responsible for filings or other assessments. Confirm the exact rules for your property and who remits what.

Why is month-by-month modeling so important here?

• Beaver Creek has strong winter peaks, steady summer weekends, and softer shoulders. A monthly model captures holiday weeks, minimum stays, and rate shifts that an annual average would miss.