Pricing
The subject of pricing anything can seem a bit subjective. After all, what is a fair price for an airline ticket? A new car? A steak dinner? A vacation home rental? The standard answer is, whatever price the rest of the market dictates. So when it comes to pricing your property, it is important to be right on the money. Literally! Price will directly affect the amount of response you get from your ads. To get just the right price, you will have to do research on other properties in your area and find out what these other owners are charging. One way to do this is work with the realto who helps you buy your property. Another way to do this is to think and act like a renter. Shop around for rates. Log on to the Internet and start searching. Make sure you are checking out similar properties. It’s helpful to compare apples with apples not oranges. You can also check with management companies that rent properties in your area. Do whatever it takes to make an informed decision on what you should charge.
Choosing Renters
Who should you target, who you don’t want to stay, who are the ones you are inadvertently turning away . . .
Wouldn’t it be great if everyone in the world were honest and trustworthy? If that were so, you’d never have to worry about renting out your vacation property. But, we live in the real world, and people all have different standards of how they want to live. What you want to do is match your renters with your values. Don’t go on a guilt trip over it. It’s your property, and you have the right to use discretion. For example, I have found it quite useful to require a minimum age. While not all young students will trash a place, there may be a difference between their expectations and yours. And you are only a small businessperson. Unlike the George V Hotel in Paris, you can’t afford to cover the repairs that a rock-and-roll band might do to the property.
On the other hand, some great vacation places are located in college towns, providing an ideal audience for your winter rentals. One friend of mine bought a San Diego condo, hoping to use it for retirement. Using an intense screen interview, and checks with parents, including financial, she was able to successfully rent the property to young people, as long as she made the effort to be on top of it. So it's not that I suggest its black and white. It is simply a matter of remembering, you, in the end, as the owner, are responsible. Decide what you can live with, how much time you can put into managing the property, then act accordingly.
At this point, you may ask, is it legal to have restrictions? What about all of those fair housing laws the state and federal governments have enacted? Will I end up with a law suit on my hands? Relax. Here is what the law says: “Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).” Did you notice that age is not written into the Fair Housing Act? You are indeed allowed to have a policy stating age exclusion (i.e., no students, or no one under 25, only 55 years and older, etc.). Check with your local city and state for exclusions in your state to these laws regarding transient rentals.
For more information on managing your vacation property yourself, check out
How to Rent Vacation Properties by Owner: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment is available at
Christine's Website.