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 florida villas rentals sites
This article may be reprinted as long as the resource box is left intact and all links are hyperlinked.
Kalamazoo taxi o'hare .. Lockport Chicago limo O’HareThe largest barrier island on the Atlantic coast between New... Read More
No visit to Thailand is complete without visiting the city... Read More
Punta Cana is an affordable destination in a magnificent tropical... Read More
Fancy holidaying somewhere unusual? How about a 7 day tornado... Read More
Cheap vacations can still be relaxing, fun and whatever else... Read More
At the heart of Central Florida lies one of the... Read More
Holiday time is around the corner and its time to... Read More
As a family, we have been visiting Orlando since 1998,... Read More
Before finding the answer to this dilemma, let's take an... Read More
Planning a Tropical vacation full of lush jungles, secluded beaches,... Read More
RV rental vacations aren't cheap, but they do contain loads... Read More
As beautiful and modern as Cozumel is, visitors must remember... Read More
The county of Dorset on England's south coast is a... Read More
Many vacationers on Hilton Head Island have discovered a simple... Read More
Lake Tahoe is a pristine recreational lake area. With high-stake... Read More
More often than not, a person will base his or... Read More
Three major cascades at Havasu Creek create a landscape that... Read More
Vacation Home Exchange V Renting Trade and save, or do... Read More
The secret treasure of Davenport's and Kissimmee's townhouses.Though usually Orlando... Read More
Margarita Island is one of the lesser known Caribbean islands.... Read More
Many people believe that the first thing you should do... Read More
Whether you've saved up for years for a fun family... Read More
Did you ever worry when traveling about the weather? Most... Read More
Traveling for business or vacationing always has one thing in... Read More
You have your tickets, your hotel or vacation rental reservations,... Read More
Chicago charter limousine service Hickory Hills ..A Fabulous Guide to Florida's Best Rentals: Condos for rent,... Read More
Everybody knows someone who has been on one and an... Read More
Surrounded by the romantic and beautiful Smoky Mountains, a Gatlinburg... Read More
When you venture to Orlando, Davenport, or Kissimmee, Florida, why... Read More
Tip #1 : Buy a beach front Caribbean villa! ... Read More
When you travel abroad, especially far away from home you... Read More
Gloucestershire, pronounced Glostershire, is a pretty English county located south... Read More
Shropshire is England's forgotten county, but it is well worth... Read More
The county of Dorset on England's south coast is a... Read More
Have you ever done something spontaneous? Are you in love... Read More
The largest barrier island on the Atlantic coast between New... Read More
What is a villa? Come to Orlando, Florida to find... Read More
As a family, we have been visiting Orlando since 1998,... Read More
Holiday time is around the corner and its time to... Read More
Work-rate, health and even personal relationships may be affected if... Read More
This may seem like a very strange title for an... Read More
As a resident, business owner and frequent skiier at Whistler,... Read More
Most of the time, when an individual is planning a... Read More
"I'm coming home. I've been away too long. Been away... Read More
Scam artists pose as potential renters everyday on many different... Read More
Those looking to invest in real estate should not overlook... Read More
Stand by the shores of Casco Bay on the coast... Read More
An Award Winning Vacation, Golf, Tennis and Beach ResortIf you... Read More
You have your tickets, your hotel or vacation rental reservations,... Read More
Many times, when we plan a vacation, we know where... Read More
Vacation Rental |