Second homes are hot! But you probably already knew that. Still, the latest statistics are revealing:
According to the New York Times (May 23, 2004), “The National Association of Realtors estimates that there were 445,000 sales of second homes last year, up 24 % from 2002. Such brisk business has raised second-home values to a median price of $190,000 last year, versus $162,000 in 2001.”
Low interest rates, favorable tax laws, a stock market swoon, and Baby Boomers entering their prime earning years are expected to continue to drive this trend, resulting in a projected 50% increase in the number of second homes in the U.S. by the end of the decade—from 6.4 million in 2000 to 9.8 million in 2010 (American Demographics magazine).
Interest in renting out second homes is growing. In a 1999 National Association of Realtors survey, 20% of second-home buyers said they planned to use their properties as income-producing vacation rentals for at least part of the year. In the 2002 NAR survey, that percentage had risen to 37% of buyers. As the demand-driven prices of second homes continue to rise, that percentage is likely to grow, since the vacation rental option may be the only thing that makes a second home affordable for many people.
Intersecting Trends
Intersecting with the upward trends in second-home ownership and interest in offering those homes as vacation rentals is the growing trend among consumers to turn to the Internet when planning a vacation. As reported recently by the Associated Press, a tracking study conducted by an independent research firm found that more than 35 million Americans purchased travel-related products and services online during 2003, up 17% from the previous year. Another 19 million people used the Internet for vacation travel research.
A Full Spectrum of Options
The bottom line is this: Thanks to the Internet, those of us who own vacation property have an entire spectrum of new options at our disposal. And, this is incredibly empowering!
At one end of the spectrum is what might be called the “augmented” traditional rental approach. Here, you sign up with the same trusted rental agent or property manager you’ve always used. But you give your vacation property an advertising boost by listing it on a few selected Web sites. Your online ads can direct prospective renters to contact either you or your rental agent/property manager. The goal, of course, is to increase the number of potential renters who discover your property and ask for it specifically when they call to book a vacation rental.
At the other end of the spectrum is the “do-it-all-yourself” option. This is a lot easier than you might imagine, and it has the benefit of saving you thousands of dollars a year in commissions and fees.
In between are the “negotiated” options. For example, you might strike a deal with your rental agency in which you pay a reduced commission on the rentals that your Web listings generate. Or perhaps you agree that you’ll handle the reservation side of things and buy other services typically performed by a property manager on an à la carte basis. Remember, in real estate, absolutely everything is negotiable!
Small Investment/Big Returns
Posting an ad for your property on the leading Web sites is cheap—it will cost you a total of less than $600 a year to list on the four leading sites, including three to four color pictures. But the key concept is options. That’s what’s new. That is what the Web now offers. It is what is fueling the revolution among property owners.
It’s a revolution worthy of a book. And, as the authors of over 60 books, we have written one. It’s called How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home.
For a complete description, as well as details on how to order a copy, we encourage you to visit our Web site. But to give you a sampling of what’s covered, we’re pleased to offer these five tips on how to successfully rent your vacation property on the Internet. Just keep in mind that they only scratch the surface of all that’s possible now that you have the World Wide Web on your side!
Next Article: 5 Tips for Profitably Renting Your Vacation Property Online
About the Authors. Alfred and Emily Glossbrenner are the authors of over
60 books on home buying, personal finance, the Internet, and other topics. Their most recent book is How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home (FireCrystal, 2004). Designed as a complete “seminar-in-a-box,” this 320-page book/CD package shows you how to create listings that really SELL on the leading vacation rental advertising sites. It also includes tips and techniques for managing your property, a CD with sample forms and checklists that you can customize as you see fit, and a variety of money-saving offers. For more information and to order a copy, click here to visit our Web site.
Click here to order your copy using Amazon.com