Article Description:
The rental market and Vacation Home sale market is unsustainable. 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.
Additional Article Info:
Word Count: 566 (not including resource box)
Category: Travel/ Rentals
Spam check rating: Low
Written By: Stewart Granville
Contact Email: admin@lastminutevillas.net
Article URL:
http://http://www.lastminutevillas.net
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Why The Vacation Home Sale Market Is Unsustainable
?Copyright 2005 Stewart Granville
Copyright ? 2005 Stewart Granville
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 (C 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.
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Stewart Granville is a Florida vacation villas rental agent and operates the Florida Villas Rentals and target="_blank">Orlando Vacation Rentals