By: Mike Kennedy mkennedy@railey.com 301-616-6106 November 19th, 2009 Category: Garrett County News, News

At the most recent Garrett County Commissioner’s public meeting, many of the local Deep Creek Lake vacation rental companies voiced great displeasure at the potential for upcoming legislation in 2010 that would enable the county to increase the local accommodation tax. This tax is currently 5 percent and is paid by visitors and travelers who stay overnight in any of the local hotels or vacation rental homes in the Deep Creek Lake area. The potential legislation would give the county authority to increase the tax all the way up to 8 percent on overnight stays. If this legislation is approved the county would probably increase the accommodation tax to 6 percent at some point in 2010.

While at first glance a 1 percent increase in the accommodation tax doesn’t seem like much - Nancy Railey, of Railey Mountain Lake Vacations - Deep Creek’s largest vacation rental company, argues that any tax increase - no matter how small - will continue the recent trend of homeowners and hotels having to discount their rental rates just to keep the same amount of tourists visiting the Deep Creek area for overnight stays.  The Deep Creek area has been much more fortunate than other resorts in this recent recession in that the amount of tourists has only decreased slightly over the past few years. She argues now is not the time in this softer economy to raise this tax.

If you currently own a second house, townhome, or condo at Deep Creek Lake that is a vacation rental, any increase in the accommodation tax could potentially decrease the amount of rental bookings at your rental property - or force you to discount rental rates just to keep the same amount of overnight stays at your property. If you are concerned about this tax increase you can contact the Garrett County Commissioners at countycommissioners@garrettcounty.org.

A small article summarizing the tax and meeting can be found here.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 18th, 2009 Category: 1031 Tax Deferred Exchanges, Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Vacation Rentals

Railey Mountain Lake Vacations, Deep Creek’s largest vacation rental company, is reporting that the vacation rental market at Deep Creek Lake is faring much better than other resort areas around the country.  With the slumping economy, vacation rental bookings are down nationwide about 18% from last year. In the Deep Creek Lake area rental bookings are only down about 10% from last year.

Other current happenings in the local vacation rental market include;

• - A positive sign is that 40% of all Railey Mountain Lake homeowners are ahead o f last year’s numbers. Not everyone is feeling the pain of this current slowdown. The other 60% are at the same level or down slightly.
• - On average each rental home is down about a week and a half of bookings this summer season.
• - The larger homes - the 9 bedroom and 8 bedroom homes - are still going strong. The 5 bedroom and 6 bedroom homes are currently lagging.
• - Renters are booking later and willing to sacrifice amenities for a lower price. Price is trumping everything right now to get bookings. If a property is priced properly compared to its competitors it will rent!
• - Some homeowners are being more flexible on restrictions to attract renters as well - such as allowing pets.
• - One of Railey Mountain Lake’s 9 bedroom pool houses set a record and went over $200,000 in gross rental bookings for the year.

In other positive news, future bookings for the 2009 fall season are already up 15% over last year. This may be due to the lower rates in the fall season and the fact the weather at Deep Creek in September and October is still very pleasant although certainly not hot by any means.

If you are thinking about renting your house or purchasing a vacation rental as an investment in the Garrett County area - give us a call at (800) 544-2425 or drop us an e-mail - there are some well performing rental houses currently for sale in the Deep Creek Lake area - as well as some houses that could be excellent rentals with some slight modifications. We’ve helped many clients over the years buy rental homes - we’ll be more than happy to get the buying process started for you as well. For those of you considering or in the middle of a 1031 tax deferred exchange this is one of the better performing resort markets in the country. Now is a great time to consider investing in real estate at Deep Creek Lake - inventory is up, interest rates are down, and there are some deals to be had.

By: DebraSavage dsavage@railey.com 301-616-4085 February 27th, 2009 Category: Deep Creek Lake Buyer Info, Vacation Rentals

How are some vacation rental homes at Deep Creek Lake doing?

Just like most things in life, “some have it and some don’t”, or so the saying goes.

With today’s tightening lending market many wonder; are there homes for sale at Deep Creek Lake that have great rental income that you can purchase to help offset the expense of second home ownership?

One such example would be 335 Waterfront Greens Drive (GA6806172). This 5 bedroom/5 bath home offers abundant vacation opportunities and great rental history. This home produced over $55,000 in gross rental income in 2008

This home offers lake access, indoor swimming pool and use of the Waterfront Greens: Par 3 Nine Hole Golf Course, tennis courts, mini golf course, club house for get-togethers or card games by the fireplace, canoe and kayak racks, winter sled riding hill and lots of walking paths and open space.

With the indoor swimming pool and all the amenities offered within the Waterfront Greens Community this is a renter’s or owner’s paradise. All these fun activities await you right outside the door. All this tucked in the quiet, relaxing and sunny cove of Beckman’s Peninsula.

Let’s run some numbers - but first things first - if you are going to finance part of your purchase locking in your interest rate now while rates are currently low will help secure your payment.

Purchase Price=$799,000
Mortgage Principal after 20% Down= $639,200
Monthly Payment=$ 4040.18
(Based upon APR of 6.5% for a 30 year mortgage on $639,200.00)

Annual (Principal and Interest) Mortgage Payment= $ 48,482.16
Annual Rental Income in 2008=$55,000+

Cha Ching!!!!! You now own a second home and real estate at beautiful Deep Creek Lake, use it for your families personal enjoyment, according to your schedule, allow guests to use the home the remainder of the time and your mortgage gets paid. Now that’s what it is all about!

Of course like anything in life, nothing is guaranteed so take into consideration that rental bookings can either increase or decrease. But locking in your mortgage rate makes one less variable you will need to deal with while owning a second home at Deep Creek Lake!