Incline Village NOI: Hidden Costs That Can Derail Your Returns

You can make a great buy in Incline Village and still miss your target returns if your NOI model overlooks local costs that don’t show up in generic pro formas. From IVGID facility fees to STR permits and shoreline requirements, small line items can add up fast.

In this guide, you’ll see the costs investors most often miss—plus a simple way to model them with confidence.

Let’s dive in.

What NOI Means in Incline Village

Net Operating Income (NOI) is your income after all ordinary operating expenses, before debt service and taxes. In Incline Village, you need to adjust the basic template to reflect local fees and regulations.

That means explicitly modeling:

• IVGID utilities and facility fees

• Lodging taxes for short stays

• STR permitting and compliance

• TRPA shoreline requirements where applicable

Local Taxes and Special District Fees

Transient Lodging Tax for STRs

If you rent for fewer than 28 nights, Washoe County’s transient lodging tax reduces your gross receipts. The layered structure commonly totals about 13 percent of rent collected.

Model this as a separate line item so your ADR and net revenue remain transparent. For background on how lodging taxes are authorized and distributed, review the Washoe County transient lodging special act at the Nevada Legislature.

Property Tax and IVGID Facility Fees

While Washoe County’s base property tax rate is often lower than in many states, Incline Village parcels carry IVGID facility fees that materially affect annual costs.

These recreation and beach facility fees:

• Are levied annually

• Appear on the property tax roll

• Vary by parcel

Always review the actual tax statement and IVGID’s facility fee guidance before underwriting.

District Utilities and Capital Surcharges

IVGID sets water and sewer base charges, usage rates, and capital components. These are not static and can change following public hearings.

Model utilities with:

• Current rates from IVGID Rates & Billing

• Step increases tied to capital projects

Incline Village is also funding major infrastructure upgrades, including the effluent export pipeline replacement, which may affect user rates over multiple years. Build a contingency buffer using the IVGID Effluent Pipeline Project overview.

STR Permits and Compliance Costs

Washoe County requires an STR permit with:

• Tiered fees based on occupancy

• Inspections

• Annual renewals

Budget for onboarding costs, renewals, insurance requirements, and any remediation flagged during inspection. A practical overview of permit tiers and fees is available in the Washoe County STR rules and fees guide.

Also model enforcement risk. Noncompliance can result in fines or suspended operations, so include a modest administrative contingency and plan for full compliance from day one.

HOA and Association Costs

Many Incline Village condos and townhomes carry:

• High HOA dues

• Transfer fees

• Special assessments

Some associations restrict or prohibit STRs entirely, which can eliminate projected short-term income. Always review:

• CC&Rs

• Recent budgets and reserve studies

• Meeting minutes

• Pending or recent assessments

Never rely on a single monthly estimate.

Operations, Management, and Turnovers

Short-term rentals require more hands-on management than long-term leases.

Typical STR management costs:

• 15–30 percent of gross bookings

• Separate fees for cleanings, linens, restocking, and maintenance

Seasonality matters in Tahoe. Expect:

• Higher demand in summer and winter

• Softer shoulder seasons

Model a conservative base case and a stress case with lower occupancy and more vacancies.

Insurance and Wildfire Exposure

Wildfire risk across the Sierra is driving:

• Higher premiums

• Larger deductibles

• Carrier non-renewals in some areas

Stress-test your NOI with higher insurance scenarios and potential carrier changes. For current context, review reporting on wildfire insurance pressures in Nevada.

TRPA Shoreline and Lakefront Costs

Lakefront ownership can include:

• Mooring registration fees

• Scenic mitigation obligations

• Limited allocations for new piers or lifts

Budget for:

• Annual buoy or boat-lift registrations

• Longer timelines and higher costs for new shorezone improvements

Review mooring registration records for typical fee items and TRPA guidance on moorings and piers before underwriting.

Development and Permitting for Remodels

If your plan includes renovations, ADUs, or life-safety upgrades to qualify as an STR, include:

• Building permits

• Regional impact fees

• Schedule risk

Mountain construction often carries cost premiums, so include buffers for both time and money—even on light remodels.

Build a Better Incline NOI Model

Use a line-by-line approach so every local cost is visible.

Revenue Lines

• Gross rent

• Transient lodging tax (shown separately)

Operating Expenses to Include

• Property tax plus IVGID facility fees

• Water and sewer with capital components

• STR permit and compliance

• HOA dues and assessment contingency

• Management, cleaning, linens, and supplies

• Insurance with higher-premium scenarios

• TRPA shoreline fees for lakefronts

• Snow removal and winter maintenance

• Reserves for replacement

• Capital project contingency

• Vacancy and credit loss

Scenario Testing That Protects Your Downside

Run three cases before making an offer:

Base case: Current rates, permit in place, realistic occupancy
Downside case: 10–25% higher utilities and insurance, lower occupancy
Regulatory shock: Loss or suspension of STR permit

Ask whether your financing and reserves can survive a year without STR revenue.

Due-Diligence Documents to Pull

Before relying on any number, gather:

• Parcel tax bill showing IVGID facility fees

• 12–24 months of IVGID utility bills

• HOA budget, reserves, minutes, and CC&Rs

• STR permit status and violation history

• TRPA shorezone and mooring records if lakefront

• Current insurance quotes with wildfire terms

Next Steps

If you want help building a location-specific NOI model for an Incline Village property, professional guidance can save costly mistakes. Careful underwriting—grounded in local fees, regulations, and risk—protects your returns before you ever write an offer.

FAQs

What is the lodging tax for STRs in Incline Village?

Short-term stays are subject to a layered transient lodging tax commonly totaling about 13 percent of rent in unincorporated Washoe County.

How do IVGID fees affect NOI?

IVGID facility fees appear on the tax bill, and IVGID also controls water and sewer rates with capital components that can materially increase operating expenses.

What STR permit costs should I budget?

Expect an application and inspection, tiered permit fees, annual renewals, required insurance, and potential remediation costs.

How much should I reserve for CapEx?

A common approach is a fixed annual reserve sized to age and finishes, plus a separate contingency for major items.

What documents matter most?

Tax bills, IVGID utilities, HOA records, STR permits, TRPA shoreline records (if applicable), and current insurance quotes.

Author

Written by Camille Duvall
Global Real Estate Advisor | Sierra Sotheby’s International Realty

Camille Duvall covers Lake Tahoe real estate, luxury lifestyle, and market intelligence for buyers and sellers who prefer context over clickbait.

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