HJDS Travel Group

The Vacation Rental Industry’s Turmoil

by on Jun.26, 2010, under Vacations

  • Sumo

Since at least 2004, the vacation rental business has been growing at exceedingly rapid rates. Vacation rental listing sites, property management companies, and even free websites are being developed and overrun by this popular emerging business. An increasing amount of individual owners are attempting to empower themselves by actively managing and operating their investment property as a vacation rental. The economic recession of 2008 – 2010 has proven that even this massive new phenomenon is facing some serious challenges, and perhaps the largest is coming from the owners of vacation rentals themselves.

Why in the world would a homeowner rent out their investment property for $100, $75, or even $50 without considering the larger costs involved? Time involvement, wear and tear, and even security issues – does it make much sense for $350/week? But this is exactly what is occurring on advertisement sites such as Craigslist. Not only is this terrible business sense, but it is undermining the very industry principles that created their business in the first place.

By slashing prices to their vacation rentals, homeowners are reducing the long-term value of their home as a short-term income producing property. Additionally, it makes it much harder to turn a profit in the future once the US economy turns the corner. This is a dangerous practice, especially within a deregulated emerging market such as vacation rentals. With no authority to actively oversee the dealings and transactions that take place between homeowners and clients, the industry on a whole is in serious danger of losing the tentative legitimacy that it currently has.

Travelers today are getting spoiled. Because they can rent out a decent hotel for $50/night, they expect the same type of service when staying at a vacation rental. But why should they even receive this, and what is guaranteeing this result? The answer is absolutely nothing. In fact, the adage “you get what you pay for” is probably the most accurate. “Cheap” doesn’t necessarily mean “value”, although an increasing number of Americans simply do not understand this. Bottom line – the consumer is getting ridiculous in their demands and individual homeowners are only perpetuating the problem by their uneducated price points.

Feel like paying cash? Ever try and get money back from a Pay Pal transaction? This is what you risk when dealing with an individual owner from vacation rental listing sites. When researching vacation rental companies, be sure to ask how long they have been in business, their payment terms and policies, as well as how secure their payment transactions are. Most can offer you virtually any type of payment method that you desire, so the ball is in your court and you are in control. A professional vacation rental service is just that – professional. Most are licensed real estate brokers, have insurance, and have been in business for quite a while.

In conclusion, renting your investment property as a profitable business is in danger of coming to an end, so long as these types of practices continue. Without the cooperation of all parties involved. So unless you want to run the risk, the best bet is to rent from a reputable online sales and reservation service of a property management company.

Learn more about San Francisco vacation rentals. Stop by Charles Tipper’s site where you can find out all about San Francisco vacation rental and what it can do for you.

categories: San Francisco vacation rentals,San Francisco travel,San Francisco vacations,vacation rental industry,vacation rental dangers,business of vacation rentals,vacation rentals,vacation,travel,tourism,online businesses,business,US economy

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Behind HJDS Travel Group Blog

My name is Harry Delgado and I am a full time Internet and Small Business developer and marketer. Over 30 years in the Computer systems development, programming, hardware installations and support. Currently making a living from blogs like HJDS Computer Services , HJDS Investment Group and HJDS BlogBiz. You can connect with me via social media sites at Facebook - LinkedIn - Twitter - YouTube.