Real Estate Investment – The Taos Rental Market

Posted by Jim Kimmons, Broker/Owner • November 27, 2008 • Printer-friendly

Taos Rental Investment

As a vacation and resort destination, Taos has a rental property profile different from most other areas. There are a number of factors influencing rentals:

Much higher demand for vacation rental than long term
Demand for long term rentals from locals is at the lower end of the rental price spectrum
High home prices make positive cash flow difficult

There is a very competitive environment for vacation home rentals, so one shouldn't look for more than 80 - 100 nights a year unless the property is a really nice one and the marketing is good.

As far as long term leases, the demand is primarily for rents below $800/month. The high prices for homes here make it very difficult to generate positive cash flow at those levels. However, a nice niche is the guest house or small studio rental in the $600 range, while the main home is occupied or used by the owner.