Using your Tahoe home as a vacation rental property is a big decision. In the Tahoe area there are two major types of vacation rentals, Airbnb short term rentals, and ski-leases. Making the decision to choose one over the other is a big one and requires sitting down, doing the research, and making a pro/con list to help guide you, and that is what we have done for you here!

First the basics: 

What is Air B N B?

There multiple online marketplaces that connect people who want to rent out their homes with people who are looking for accommodations in that location. Hosts don’t have to pay to list their properties but certain platforms like Airbnb and VRBO charge hosts a service fee of at least 3% for each reservation, to cover the cost of processing the transaction. Many platforms offers a way to create listings which can include written descriptions, photographs with captions, and a user profile where potential guests can get to know a bit about the hosts. Hosts can set their own price. Airbnb’s Host Guarantee program “provides protection for up to $1,000,000 in damages to covered property in the rare event of guest damage, in eligible countries.” 

What is a Ski-Lease?

A ski lease is a half-year exclusive rental agreement for a private home or condo. Most North Lake Tahoe ski leases begin in December/January and end in April (during the operating months of the ski resorts). The property belongs solely to the family or group during that time. Ski leases are usually managed by property management companies and require security deposits, background checks, and signing of a lease.

We have outlined all you need to know about local ordinances here.

Airbnb Pros

Airbnb provides an easy platform to share your listings and listings will receive bookings and exposure almost immediately. Airbnb provides new listings with an algorithm boost to ensure they can compete with established listings. In a place like Lake Tahoe, Airbnb rentals for holiday weeks can bring in a lot of income even if they sit vacant for half the month.

Landlords will also be able to use the property while also taking advantage of rental opportunities. This is a great option if you also want to ski but will not be using the property often.

Airbnb Cons

Damage to rental. Short term rentals do have the tendency to cause a bit more wear and tear on the property due to the increased turnover, but the overall amount of use doesn’t shift drastically. While more people may inhabit the home on a daily basis, they may only spend a couple of hours per day at your listing. Because your property will receive a cleaning after each checkout, any damage will be immediately noticed and addressed. The damage can be quickly documented and you can request reimbursement from the guest. Traditional leases will be more susceptible to prolonged damage due to tenant habits.

Management often falls on you and with more people checking in and out monthly you will have to field more questions, coordinate key drop-offs, cleaning crews, and the big one; snow removal. With a ski-lease property you only have to handle the logistics once, and the occasional visit if anything else comes up.

 

Ski-Lease Pros

Long-term leases are considered a solid way to secure a reliable income stream for a given period of time. Each step of the process is extremely straightforward – from the moment a property is listed to the moment the tenant leaves the property, there is a set procedure that does not drastically change each season. Often people find tenants who want to rent the same place year after year making this a very reliable and predictable source of income.

Management of the property is often much more straight forward, if you decide to use a property management company or not. You have one tenant, and one set of move-in move-out dates and can plan accordingly.

Ski-Lease Cons

Property owners that choose to place long-term leases on their properties will not be able to take advantage of any other income opportunities that arise until after the lease terminates. Landlords will also not be able to use the property themselves for the full length of the lease.

Long-term tenants will sometimes leave the house in a worse state. In the worst cases, some landlords have to spend more than the entire amount of rent they receive from a tenant just to get the property ready for a new lease. This can be especially vexing if they do not keep up with snow removal, ensuring the heating is on so the pipes don’t freeze when they are not there etc. If you are only checking in once, when they move out in April, you may be met with surprises.

Conclusion

The decision to use your Tahoe home as a vacation rental is a personal one. For each landlord the pros and cons may be different. Each method, ski-lease and Airbnb, have their advantages and disadvantages but they are both good options for a home in such a desirable location as Tahoe.