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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.


MORE RESOURCES:

Durango Herald

Vacation rentals becoming a rarity
Durango Herald, CO - 14 hours ago
With just a handful of legal vacation rentals in town, demand far exceeds the current supply. Many owners continue to rent their homes to tourists despite ...
Officials, supporters walk a fine line by reducing options Durango Herald
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Hawaii SuperFerry Announces Fall Hawaii Deals
TransWorldNews (press release), GA - 1 hour ago
Maui vacation rentals and Big Island vacation rentals are at 50% off. While there enjoy the many Hawaii beaches. Find rentals, travel guides and deals on ...


Vacation Homes - Cheaper than You Think
SavingAdvice.com, WA - 9 hours ago
Simply Google “vacation rentals by owner” and you’ll find several websites that list house, condo, and townhome rentals by owner. ...


PR Web (press release)

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Manila Apartments and Vacation Rentals
Free press releases (press release), UK - Sep 1, 2008
Many families are discovering that staying in short term apartments while going to Manila will save money. Apartments not only accommodate more visitors ...


Orbitz adds vacation rentals to online offerings
BusinessWeek - Aug 19, 2008
By KRISTEN A. LEE Travelers booking their vacations on Orbitz.com now have the option to rent a private home or condominium for their trips rather than a ...


ABCs of Vacation Rentals During Hurricane Season
MarketWatch - Aug 18, 2008
According to a May 2008 survey of property management companies by rental property website Zonder.com, vacation rentals are just as popular with travelers ...


Women on Their Way Advisory Board Launched by Wyndham Worldwide
CNNMoney.com - Sep 5, 2008
WomenOnTheirWay.com, includes expert advice on destinations, hotels, timeshare resorts and vacation rentals, plus special deals and packages. ...


Affordable Vacation Rentals in Missouri
TransWorldNews (press release), GA - Aug 27, 2008
Those looking for an affordable destination to spend a fun time should consider vacationing in Missouri . Such places like Branson and Osage Beach offer ...


Verified Vacation Rentals for Greater Confidence
PR Web (press release), WA - Aug 13, 2008
Spot Vacation Rentals (spotvacationrentals.com) verifies vacation rental properties through public records and owner identity checks. ...

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