Why The Vacation Home Sale Market Is Unsustainable

The rental market and Vacation Home sale market is unsustainable. Property prices are still rising by appalling amounts.

Yes that's great on the surface, but match today's house prices with what people are quoting for rentals. Anybody seen a 20 or 30% rise in their income from guests?

Anybody seen flight prices coming down?

Anybody seen car rentals coming down?

Anybody seen attraction prices coming down?

Any form of economics will show that if you have a home and have a mortgage of anything in excess of $1000 with all the associated costs like utilities, management,

taxes, replacement and upgrades, and if a home is being rented for anything less than $80 a night based on 35 weeks rentals that home is being run at a loss.

There is ample evidence to show that that homes are being rented for less than that. Fortunately there is also evidence that owners are sticking to their guns and getting what their home is really worth.

This is not a Last Minute syndrome. Because our site is so popular it's easier for owners to stick out for the rates, but there are other rental sites that lead owners to desperate measures.

This is not to suggest that a market economy is wrong but too many have been left in desperate situations by false promises by a whole myriad of people.

The first reaction by owners is to cut prices. Unfortunately all that does is delay the final sad outcome.

It's a fascinating insight as to how people operate their homes, and interestingly, its usually owners of less than 18 months who offer low prices.

The long-term owners, even though they could afford it in the main, are not lowering their rates unless it's a special one off deal.

The long-term owners, feel they have seen it all before - potentially supply outstripping demand ? so they wait until all the other homes are filled with cheap rentals, till they know they can get the price they need to survive.

Is this a good strategy? That's for you to decide.

Although Florida has being full this year, experiencing what is probably one of the best seasons in the past 5 years, not too many owners are taking advantage of this.

Disaster looms ahead and the only winners in this situation are the realtors. The very people that probably got many owners in to the situation they are in now. Luckily at sites like ours, the owners are in control.

If the enquiries come through, its up to the owners to convert them to bookings, its up to them to decide on pricing, its their web site that is the brochure for guests to view, its their techniques for making sure converted bookings are satisfied.

As one of the most popular sites, our focus is on getting visitors, getting enquiries and not having too many owners competing for the same enquiries. And this we do quite well.

Vacation rentals are a business and like everything its supply and demand. It only takes one owner to drop the price below realistic levels to create a precedent. As always it should be your decision, because you know what works for you.

Hopefully this helps clarify a situation, which will cause a lot of heartache for people in the future unless rental rates improve.

Stewart Granville is a Florida vacation villas rental agent and operates the Florida Villas Rentals and Orlando Vacation Rentals sites

This article may be reprinted as long as the resource box is left intact and all links are hyperlinked.

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Rentals United becomes connectivity partner for Google's vacation rental search  Travel Daily News InternationalWith Rentals United's Book Direct solution, property managers will have their listings automatically added to Google's vacation rental search and guests will be ...
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How to make your home a dreamy Austin vacation rental  CultureMap AustinVacation homes are becoming an increasingly popular accommodation option for travelers, especially those traveling with families or a group of friends. It.
Vacation rental company owner deposited rent checks into his personal account, police say  WMBFPolice charged Walter Pigg, the owner of Keye Beach Rentals, with multiple charges of breach of trust with fraudulent intent on July 1.
Ige signals intent to veto vacation rental bill | News, Sports, Jobs  Maui NewsThe Associated Press and The Maui News HONOLULU — Gov. David Ige has placed a vacation rental tax collection bill on a list of legislation he intends to vet.
Letter: Vacation-rental action to help affordable housing  Honolulu Star-AdvertiserKudos to Ron Menor and the rest of the City Council for finally acting on the vacation rentals problem (“Council OKs 2 vacation rental bills,” Star-Advertiser, June ...
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Danny De Gracia: Don't Scapegoat Airbnbs For Honolulu's Housing…  Honolulu Civil BeatCity's crackdown on vacation rentals unfairly punishes small property owners trying to turn a profit -- and is insulting to tourists.
San Diego vacation renters' trash eyed  San Diego Reader#Online vacation rentals of less than a month, already at the center of a popular storm regarding traffic, noise, and zoning, now have another challenge to ...
Vacation rental rules may soon change - News  Mount Shasta HeraldVacation rental properties within the City of Mount Shasta's sphere of influence will likely soon be allowed only on properties that are 2.5 acres or larger.
Man shot, killed outside Brandon Airbnb house party, raising rental safety concerns  FOX 13 News, Tampa BayHillsborough County deputies are searching for the gunman who killed a man outside a party at an Airbnb rental house.

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