Follow the money

To Craig Gildroy,
 I heard Joe Collins make the statement last week at the Planning Commission, without any evidence to support his opinion, that a property in short term rental pencils out just the same as that same property in long term rental.  And now I heard you repeat that as “the truth” last night at the Council Workshop.  This just isn’t true!
Consider:
 A nicely kept 2-bedroom, 1-bath home in Chelan likely rents in the $1000 to $1200 per month range (if you can still find one).  That’s $12,000 to $14,400 per year income for the owner.
 A hotel room (studio apartment size) at Campbells will cost you about $300 per night or $2100 for a week, with no kitchen and all your meals at restaurants.  So why not rent that 2-bedroom, 1-bath home for, say, $2000 to $3000 per week (that’s the number that we keep hearing).  (You can also invite your friends to share the cost.) This year there are 11 weeks between Memorial Day and Labor Day: that’s an income range of $22,000 to $33,000 PLUS any shoulder season rentals that you can muster.
 Follow the money!  Joe is in the real estate business; he personally profits from homes selling to short term rental investors and at a higher cost.  Kelly Allen was very challenging last night.  She, too, as evidenced during the comp plan process, wants to be in the short term rental business.
 When you’re in the audience and not participating, you get to watch body language, listen intently to what’s being said without having to think up what to say next, consider the point of view of the speaker, and connect the dots … and you hear a lot!  Follow the money!
 

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