Rental Management

Even if economic circumstances don't necessitate that you rent your vacation property in your absence, you might consider renting your property and report this rental income on two consecutive tax returns. This may help surmount one of the greatest obstacles in establishing "intent" and demonstrating that this is an "investment" property as defined by the IRS. This investment status of a property allows the owner to potentially conduct what is known as a 1031 tax deferred exchange, if and when you ever wish to trade up to a permanent residence by selling your current "investment" home. Another measure that the IRS uses to establish the difference between a vacation property and an investment property is the amount you use the property for your own purposes. It has been suggested that if your own use exceeds two weeks a year that you keep a logbook on the property and log all the repairs that you do with each visit as this time spent doing maintenance is not considered time of personal enjoyment. I encourage those who are interested to ask the advice of their CPA.

Those property owners who maximize the rental incomes from their rental properties at Eagle Crest seek to keep their properties occupied with short-term renters (less than one month duration) from April 1st to the end of September and then to find long-term

tenants for the winter months. These long-term tenants are typically people who have purchased lots at Eagle Crest and wish to over-see the construction of their new homes.

If the operator of your rental management company does not hold an Oregon Property Management License e.g. a real estate broker's license, they will not legally be able to manage your property for long-term rentals. I recommend taking your property out of the management program every September and begin advertising on your own for long-term winter tenants.

All of the following companies are owned and operated by good caring people. All exhibit a great deal of respect for their clients needs and property. All charge between 20% to 25% of gross rental proceeds for their services. All have a solid track record for keeping properties occupied during the peak or summer season. All have numerous vacation rental properties at Eagle Crest. These rental management companies link their web sites extensively with international vacation rental websites. I recommend the use of a rental management company for short term vacation rentals especially those that are located close to your property and one with a proven track record i.e. ask for references.

The Rental Connection: http://www.rentconnect.com/

888-702-0761 541-383-1780 Brenda and Chet Matwich
rentals@rentconnect.com

Marr Management
www.marrmanagement.com
541-923-8222 Diane Marr diane@marrmanagement.com

Triple "E" Vacations
www.triple-e-vacations.com
866-619-1093 503-631-3142 Lynn Eells http://www.rentconnect.com/

Eagle Crest Resort® offers a rental management program for owners wishing to generate revenue out of their units. For more information, please contact their Rental Management office at (541) 504-2319 option 2. http://www.eagle-crest.com/Lodging/Lodging.aspx?page=Lodging Note: Eagle Crest's rental management program is going through some changes at present. Their managers have recently been funneled off to manage rentals at Brasada. This transition seems to be going smoothly and those that have been brought in to fill the void left by the out-going staff have learned their business fast and well. Eagle Crest Property Management has a great history for keeping properties occupied and have the advantage of being the only on-site management company. Their central reservation system has the advantage of being able to offer homes, town homes and Chalets to those who call in to rent a room at the Inn. The down side is that they charge 50% of gross rental receipts for their services. A closer study of net returns to homeowners would be advisable to any who are interested in renting their properties but rental histories are often difficult to obtain.