Park City Property Guide - Park City and Deer Valley Real Estate News

How is the Park City vacation rental market?  A Q & A with Jim Anderson at Park City Rental Properties.  

We have many clients that have invested in vacation rental property, throughout the Park City and Deer Valley areas.  These properties vary in location, size and age.  Some owners use the property extensively during the ski season, rent out their home or condo while their not using it to offset some costs.  Others use them less frequently, to maximize the rental revenue.

We do our best to ask our clients how their rental property is performing.  Were bookings up, down or the same during the past couple of years?  Did people book their trips early or wait until later in the season?  We’re hearing mostly that the past season was strong, especially having another good snow year, after the record breaking 2022/ 2023 season. 

To get more insight from a professional property management company, we asked Jim Anderson, Director of Business Development with Park City Rental Properties (PCRP).  Jim and the team at PCRP manage a large variety of condos, townhomes, luxury homes, ski and resort style property throughout the Park City and Deer Valley area.  

Jim helped us out by answering a couple of quick questions and adding some comments and data that he uses to track year over year performance throughout the rental market.

Questions For Jim:

Overall, how was occupancy in 2023 vs 2022? 

"The average daily rate (ADR) was up by 10% in 2023 compared to 2022. The ADR is the total nightly revenue (excluding taxes and fees) divided by the number of nights per stay. For example, a five-night stay with a rental revenue total of $5,000 would have an average daily rate of $1,000.

Adjusted Paid Occupancy was down in 2023 vs 2022.  Adjusted paid occupancy is the occupancy percentage of nights rented throughout the year after owner blocks and housekeeping/maintenance blocks are taken out. Essentially, the percentage of nights rented of the nights we actually have available to us to rent a home. Typically we see about a month of these blocks taken out within a year’s timeframe."

Is there a certain size property that is performing better than others?

" 0–2-bedroom properties had the biggest drag on occupancy and average daily rate, as this segment of the market was dealing with an oversupply issue, falling demand due to increased competition with hotels, last-minute bookings (discounting), and an overall spreading of demand to many more territories coupled with shorter length of stays, as this seemed to be the consumer trend.

- 3-4 bedroom segment remained relatively flat as supply eased and demand picked up a bit - the market is still trying to find it’s way with lower supply and demand that is returning to more normal levels.

- 5+ bedroom supply remains relatively low in all areas and demand is strong. Hence, we are seeing this segment of the market really achor the overall occupancy and especially average daily rate. In addition, due to the supply and demand, we are seeing the longest booking windows and lowest last-minute bookings as well."

Any particular type of property that has been consistent?
"- Ski-in/out pricing and occupancy remained strong, with relatively little price elasticity and tight supply, coupled with two excellent snow seasons."

Challenges in the rental market? 

"- Overall supply, which was a big issue at the end of 2022 and going into 2023, has eased in the overall market. Where we are still seeing the biggest supply issues is in the outlying areas like Black Rock Ridge, Hideout, Silver Creek, etc. especially in the 2-4 bedroom segment. Many owners have converted their short-term rentals into long-term, helping on the short-term supply side, but demand doees still have some catching-up to do."

Thank you to Jim Anderson - if you're looking for great property management in Park City, many of our clients have hired PCRP and have been very happy with the full service and rental revenue.