The traditional Northwoods resort (what I will refer to as RESORTS 1.0) is rapidly becoming a thing of the past. Introducing RESORTS 2.0…here is what I see.
Most any Minnesota or Wisconsin native (as well as many other lake area natives) dream of owning a piece of one of the many lakes we love and enjoy. But with the cost of owning a second home, let alone a first, being somewhat outrageous, this dream is out of reach for the majority taxes, maintenance, time, etc
Let us begin with the traditional RESORTS 1.0…throughout time, your typical resort has provided a place for your everyday family to enjoy at a price they can afford. While this is still true, it does not satisfy the dream of ownership. Sure you have your one-week a year at the lake, but it also reinstills that urge to have your own lakeplace.
Now take into consideration the still rising cost of lake property (sure prices have dropped over the summer, but what were they worth 5 years ago?). Say you own a resort. You want to retire or venture into something else. You have your local realtor do the old CMA and your 8-cabin resort is on the market for $2.5 million. How can someone purchase the resort and make a profit, or even sustain, without increasing the rent on the cabins to sky-high rates, and out of reach for the majority?
This is where RESORTS 2.0 takes over. Instead of selling the entire resort at once, sell each cabin individually. You also manage and maintain the property so the new owner can go to the lake and actually enjoy the weekend, instead of the imposing work normally associated with any home ownership. (Of course, not everyone dislikes the additional work…it can be quite enjoyable and rewarding for some…but I will stereotype). The resort owner all ready has the management experience and can make a great living using a new model.
I would have to say that most cabin owners do not head to the lake EVERY weekend, and when they do not, they feel like money is being wasted (you are paying $3k a month and want to get your monies worth…at least I do!). Why not rent it out when you are not there? You could help with the mortgage or even make a profit! But then again…renting out your cabin isn’t that easy. You have to clean it before and after each renter…deal with the occasional repairs…and also FIND the renters. All in all, it is a part time to full time job (or you could always hire out)!
RESORTS 2.0 benefits to resort owners:
· By selling individual cabins instead of the whole resort, the profit margin is normally higher
· By still managing the cabins, monthly maintenance/management/rental fee’s create a year round income
· When the owner decides to sell, providing you get your real estate license, you will be the one making the commission off every sale…every time it sells
· This will keep the traditional feel of the resort, rather than selling to a corporation (which will soon be the ONLY ones who can afford a resort) who may knock it down and either split it into a new expensive lake home development, or build a big condo development (which isn’t that bad in some ways…keeps it cheaper, but kind of a metropolitan feel in a natural environment)
RESORTS 2.0 benefits to the perspective buyer/owner:
· In many cases, a “resort cabin†is less expensive than if it were a “private cabinâ€
· You get to enjoy the time at the lake instead of working half of the weekend
· You can rent it out and help pay the mortgage or even make a profit without having to do anything
· You get all the amenities of the resort…i.e. restaurant, tennis court, game room, sauna, etc…
· You want to sell? Have the management company sell it (who knows the resort better than the former owner and current manager?), and in the meantime, rent it out
So as you can see, it seems to be a win-win situation for the right people.
While having more privacy than a resort setting can provide is still the desire of many people, the RESORTS 2.0 movement is very appealing to many. I strongly believe RESORTS 1.0 will become a thing of the past, and be over taken by 2.0 by the time my son has gray hairs (and I have gray hairs at 35). I may be wrong, but the trends are all ready there…check out Northern Lights Resort Outfitting and Big Sandy Lodge & Resort for examples or to purchase your own dream getaway.
My friends Tom & Pat Ossell own Northern Lights Resort Outfitting and have been selling resorts and campgrounds since 1973…so if you are ever in the need, do not hesitate to contact them! Of course, if you are looking for any type of lake property for sale, cabins for rent, or resorts to visit, make sure you visit LakePlace.com, which boasts over 20,000 Minnesota & Wisconsin lake properties, hundreds of cabin rentals, and a lot of great Minnesota resorts & Wisconsin resorts (1.0 and 2.0)!
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