Question: Allison, we have owned our condo in Wildernest for 10 years and have never rented it. We're considering renting it now, but are extremely nervous about the consequences of unknown renters. Do you have any suggestions?

Answer: Good question. While rent-by-owner agencies say it's a snap to find renters for your mountain property on the Internet, the best way to ensure your sanity — and your second home's safety — is to first consider renting mainly to family, friends and neighbors.

It's simply human nature. In most cases, consumers choose familiarity over the unknown almost every time. For example, borrowers historically have selected fixed-rate loans instead of adjustable-rate mortgages because they are predicable and not as risky.

When you consider family and friends first, you usually get the renter that you know and hopefully trust, who will give you less hassle and who is most likely to leave your getaway in the condition they found it.

The best potential pool of renters could be from the families that had properties close to yours. However, never overlook the business associates, teammates and casual acquaintances you see all the time in town. These two separate and independent groups can produce more than enough folks to fill your last-minute rental calendar.

Think about it — how many weeks do you realistically have available? Wouldn't you want to fill your available weeks with somebody that you know? Why rent to a stranger who has contacted you off the Internet when the Fitzgeralds from the parish church known for their altar-boy kids would die to have the week you can't use before Labor Day?

It's a huge advantage to have personally witnessed how potential renters keep their own home. You'll rest easier knowing they will probably keep your place in much the same condition that they keep their own home. (Conversely, your visit to their home may be the primary reason not to rent to them.)

Casual friends and acquaintances often know the going rate and usually expect to pay — so charge them. If your place clearly is on a resort's 50-yard line, has the best views, hot tub and feather beds, your friends and neighbors will be prepared to pay top dollar for your top spot. Given a choice, the average person will splurge and select elegant over ordinary for a short period of time. It's especially true when you are on vacation or a corporation is picking up the tab. (Certain family members will never splurge, creating interesting dynamics)

If the getaway is in the middle of nowhere with no obvious amenities (besides serenity) and you have never rented it out, at least consider covering your utility and cleaning costs even if “nobody would be using it during that time anyway.”

If you are renting to someone you already know, the chances are you probably won't sign a rental agreement. One of the most important things to do is try to set some ground rules before they move in. Discuss any issues (broken pipes, best place to park the boat trailer, no lifeguard at the pool) that you think could arise while they occupy your place. Preparation always helps prevent some awkward situations down the road.

Remember that you can receive tax-free income for renting your place a maximum of 14 days. Take a few moments to think about if there is a popular segment before the end of the year that would bring the biggest bucks. Is there a popular water-ski tournament that lures the best performers in the region to your lake? Given the economy, is it a good year to pass on the traditional winter carnival, thereby freeing up your slope-side cabin to a family very willing to pay top dollar for ski-in, ski-out accommodations?

Allison Simson can be reached at (970) 468-6800 or at Info@SummitRealEstate.com. Summit Real Estate — The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Want to know the value of your Summit County property? Visit www.SummitHomeValue.com