The vacation rental industry is in trouble and possibly on its way down. Since at least 2004, the growth rate of the vacation rental industry has been increasing in leaps and bounds. More and more vacation rental listing sites began to emerge, and owners began to increasingly market their units on their own. New stories were constantly being written, extolling the growth of vacation rentals as a business as seemingly never-ending. But as this last economic recession has shown, there are some serious issues looming for the vacation rental industry on the whole.
The problem, you see, is that homeowners are now so desperate to rent out their homes that they are doing just about everything they can to get renters into their units. Craigslist advertisements state ridiculous prices of $100, $75, even $50 a night rental rates for entire homes! Why in the world would a home owner even want to open their private residence up to complete strangers for such rates? The wear and tear alone on their unit makes this a complete waste of time and in fact a terrible decision.
Why are these types of price points dangerous? The danger lies in the fact that because this is such a deregulated industry with no formal watchdog overseeing vacation rental transactions, the legitimacy of the industry is being increasing undermined and distorted. True value-added businesses suffer at the hands of these unsavvy home owners, who are only destroying the ultimate long-term value of their home by offering these types of rates. Where does it stop? If home owners are willing to rent out their home for $50/night, then obviously a case of beer or Pizza Hut coupons would also suffice. Your bemusement at that example is exactly how I feel when I hear about a 2 bedroom/2 bathroom unit in the Gaslamp Quarter of San Diego rent for $75/night, with no required damage deposit.
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.
Renting from a property manager or a vacation rental reservation service is still the safest way to vacation. The reason being is that you have some actual recourse if the property or transaction is not handled to your liking. With most private home owners who operate on a cash/Pay Pal basis, this security is non-existent. Be sure to ask how long the business has been operating and how transactions are processed. A good rental agency will have every answer to every question and can provide the sense of security upon renting that you want and deserve.
The bottom line is this - the vacation rental industry is in danger of falling apart. Without cohesive interaction on all level of the industry, from owners, managers, to an authoritative body, renting a vacation rental from anyone other than a vacation rental agency is a very bad and potentially dangerous proposition.
The problem, you see, is that homeowners are now so desperate to rent out their homes that they are doing just about everything they can to get renters into their units. Craigslist advertisements state ridiculous prices of $100, $75, even $50 a night rental rates for entire homes! Why in the world would a home owner even want to open their private residence up to complete strangers for such rates? The wear and tear alone on their unit makes this a complete waste of time and in fact a terrible decision.
Why are these types of price points dangerous? The danger lies in the fact that because this is such a deregulated industry with no formal watchdog overseeing vacation rental transactions, the legitimacy of the industry is being increasing undermined and distorted. True value-added businesses suffer at the hands of these unsavvy home owners, who are only destroying the ultimate long-term value of their home by offering these types of rates. Where does it stop? If home owners are willing to rent out their home for $50/night, then obviously a case of beer or Pizza Hut coupons would also suffice. Your bemusement at that example is exactly how I feel when I hear about a 2 bedroom/2 bathroom unit in the Gaslamp Quarter of San Diego rent for $75/night, with no required damage deposit.
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.
Renting from a property manager or a vacation rental reservation service is still the safest way to vacation. The reason being is that you have some actual recourse if the property or transaction is not handled to your liking. With most private home owners who operate on a cash/Pay Pal basis, this security is non-existent. Be sure to ask how long the business has been operating and how transactions are processed. A good rental agency will have every answer to every question and can provide the sense of security upon renting that you want and deserve.
The bottom line is this - the vacation rental industry is in danger of falling apart. Without cohesive interaction on all level of the industry, from owners, managers, to an authoritative body, renting a vacation rental from anyone other than a vacation rental agency is a very bad and potentially dangerous proposition.
About the Author:
Looking to find the best deal on San Francisco vacation rentals, then visit www.yoursite.com to find the best advice on San Francisco vacation rental for you.
No comments:
Post a Comment