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.

In The News:

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Sea to Sky's Heidi Stuber is Running for Seattle City Council  VRM IntelHeidi Stuber has officially thrown her hat in the ring for a position on Seattle's City Council. Stuber is the strategic director at Sea to Sky Rentals in Seattle, ...
15 vacation rental permit applications filed in the past 6 weeks  SanJuanIslander.comIn the past six weeks permit applications have been filed for three Aircraft Hangars on Stuart Island, eight vacation rentals on Orcas Island, seven v...
Vacation Rental bill appears dead  Historic City NewsLegislative efforts to pre-empt local regulations statewide of vacation rental homes may have died again this year on Wednesday as the Senate bill seeking to do ...
Letter: Level playing field for vacation rentals  Honolulu Star-AdvertiserVacation rentals support small businesses and provide rental income to local families who struggle with the high cost of living. Read more ...
Richmond schedules hearings on short-term rental rules  CBS19 NewsThe city of Richmond, Virginia, has scheduled two public meetings to give residents a chance to comment on regulations proposed for short-term housing ...
Grand County real estate transactions, April 14-20  Sky Hi NewsTransactions from April 14-20, 2019. Bridgers Cache Sub Lot 17 – Campbell Family Properties LLC to Roger Chivukula, $2500000 Mesa Tracts Lot 8 Partial ...
Vacasa Acquires Sterling Resorts  VRM IntelVacasa has acquired Sterling Resorts, one of the largest vacation rental management companies on the Florida Gulf Coast. Previously purchased by Pacifica ...
Manager, Technical Partner Advocacy - HomeAway  Built In AustinHomeAway is hiring for a Manager, Technical Partner Advocacy in Austin. Find more details about the job and how to apply at Built In Austin.
Column: Vacation rentals harm hotel industry  Honolulu Star-AdvertiserHLTA encourages the City Council and our neighborhood advocates to keep up the momentum on Bill 89 so we can finally address this long-standing problem.
5 reasons you need a vacation at ResortQuest in South Walton Beach. Book by May 1 for 15% off! Enter to win a two-night stay here.  Bham NowHere are five reasons to book a beach-cation through ResortQuest by Wyndham Vacation Rentals in South Walton, Florida.
Column: It's time for a compromise on short-term vacation rentals  Honolulu Star-AdvertiserThe City and County of Honolulu would benefit from developing sensible regulations for short-term vacation rentals, and putting effort into collecting taxes and ...
April 26: Open House and Ribbon Cutting at ALTAR Movement Studio and Web Suites  SanJuanIslander.comAn Open House and Ribbon Cutting ceremony will take place Friday, April 26 at 80 Web Street in Friday Harbor. The Web Suites - three vacation rentals...
California Law Would Outlaw Small Shampoo, Conditioner Bottles in Hotels  ReasonThe jury has rendered its verdict: plastic is polluting our oceans, and it's a problem. But it's one that won't be solved by straw bans or prohibitions on single-use ...
BUSINESS MAVERICK: Devil's in the detail as government toys with regulating Airbnb  Daily MaverickEchoing calls to regulate ride-share platform Uber in South Africa, which has disrupted the taxi industry worldwide, has spilt over into the local tourism industry ...
What will Dusit International be showcasing at the Arabian Travel Market?  Short Term RentalzThailand: Thai hotel and property development company Dusit International is set to showcase its expanding international portfolio of properties at the upcoming ...
Etihad Airways to reduce single-use plastics by 80%  Kiwi.comThe carrier is also the first in the Middle Eastern region to operate a flight without any single-use plastics on board.
Those Tiny Hotel Toiletries? California Lawmaker Wants to Get Rid of Them  KQEDSarah Enemark of Contra Costa County says she doesn't travel often, but when she does, she typically forgets to bring her own toiletries. So on a recent ...

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