just back--1st time in a vacation home and loved it!

[TDM516]

I would hate to see the cost of renting a vacation home spiral upward to the point that it's only a "win" situation for the owner and not a "win-win" for both owner and renter. For that reason, I hope the rates charged by owners stay reasonable, like the rate we got for the last week in May. I used to be a condo owner myself in Destin, so I know a little of where I speak in regard to looking at it from the owners' and the renters' perspective, and I can tell you that if you are too concerned about "renting too cheaply and devaluing" yourself, you will price yourself out of the market, thereby losing more in the long run. You may get more per rental, but you will get fewer rentals overall, thus losing money. Call it the Wal-Mart philosophy. Rent more often at a lower price and come out ahead. No, you can't let it go for nothing and you have to cover your expenses and make room for capital improvements, but it's like my dad used to tell car salesmen---"I don't mind you making a profit; I just don't want you to make it all on me!"

 

[FLeisure]

TDM,
I understand where you are coming from but some folks out there are asking ridiculously low prices. Maybe their homes are of a poor standard or maybe some of them don't have as much cost as the normal person, but I can tell you that rates of $300 - 500 a week are crazy.

The average 4 bed home has an annual running cost of nearly $20,000 per annum which means you need $ 384 per week assuming a full occupancy to "break even". Unfortunately, this isn't a true breakeven as furniture, etc needs to be replaced from time to time.

If you allow for 70% occupancy you need 36 weeks at $ 555 per week and most homeowners don't even achieve that !! Believe me when I say that if you think you are getting a great deal that you need to ask some serious questions of the homeowner.

I believe in a fair price don't get me wrong and anywhere in the region of $ 750 - $ 800 is reasonable at low season. This price reflects a reasonable return for the homeowner but more importantly, there is less chance of the homeowner cutting corners when renting the house out.

As regards the Walmart philosophy....no thanks.....homes are not stack it high sell it low commodities. If you want that, go and stay in one of the cheap motels on US 192 !! Think of it more as a Jaguar at GMC prices !!

Another way to look at it is as follows:

4 bedrooms = 8 to 10 people if there is a sleeper sofa.
Cost per night at $ 111 = $ 11 per person if 10 people or $ 13.80 per person if 8 people. Surely that isn't expensive is it ?

 

[JANNYANS]

At $300-500 per week the owner is almost paying the guest to stay in their house.My rates are slightly lower than most but I do not have a mortgage but I do need enough to keep my home in good order, pay the utilities ,pest control, management pool man etc.As fleisure says given the amount of people a home will sleep prices aren' t bad.

 

[TDM516]

Believe me, I wasn't thinking in terms of $300-$500 a week! In doing my searching, I actually found no homes (that I would rent) in that price range. As I mentioned before, I used to own a rental condo and after assessments and homeowner's fees and management fees and improvements, etc. I know what it takes to break even, and we had a mortgage. I have obtained a rental for a week in Windsor Palms for less than $1000 a week plus taxes, and consider that extremely reasonable, when the cheapest condo I could find in Destin in the location we wanted was $1500 a week (but it's high season there). On the website that Deb Wills recommends, they are advertising two free Disney park tickets, but the same house in WP (same house plan and amenities) would cost me $400 more a week! That's my point---why pay $400 more for the same exact house. I don't think I explained myself very well---I was thinking $800-900 range for a newer home in a nice development during low-mid season. $300-500 wasn't even in my train of thought! I would be very suspect of a house renting for that amount.

 

[FLeisure]

TDM,
I'm very pleased to read your comments ! It has restored my faith in human beings ! $800- 900 is the right sort of rate IMO partic. when compared to other properties elsewhere.

Unfortunately I've seen the people who advertise and rent their homes at low rates...usually they end up in foreclosure ! Or worse still, the renters/guests get ripped off and the whole industry gets tarred with the same brush.

I absolutely agree with you in regard to WP....if someone is trying to rent $400 above normal market conditions then they need to seriously assess what they are trying to achieve. WP still bewilders me but it seems folks love it.........c'est la vie !

 

[JANNYANS]

The homes on Deb Wills site are all tied in with a large mc and that's the reason thet can offer incentives like Disney tickets-a private owner will not be able to do that.They will however be able to offer you a one-to -one service with more informaton about your rental than any MC will be able to give.The personal touch is welcomed by rentors and the owners like to speak to the people who are in their homes.Yes the owner may well be charging a little more than some MC charge but believe you me the owner doesn't get it all.

 

[FLeisure]

There are advantages and disadvantages to dealing direct with the owner. Thankfully, 99% of owners are honest individuals who love their homes and take great care and pride in them...unfortunately there's always a small minority who don't careless and are only motivated by money.

A few years ago I came across a guy who walked into our office wanting us to manage his home. He had just bought the property, so he said, and needed us to take care of everything as he was flying home the next day. Naturally we did everything he wanted, got the house licensed, organised a clean etc but there was one major fundamental problem....the swimming pool wasn't finished. The reason as it turned out was that he hadn't paid the pool company.....and even later we found out that when he contacted us he hadn't officially closed on the property despite having a HUD statement that he showed us !

You can guess what happened next....his first guests arrived and they were distraught. We then had the task of trying to sortthem out whilst the owner went missing. After that experience we informed the owner that we weren't prepared to deal with him anymore. Three years later we were called by a Trading Standards person in UK asking us for more information on this character. It appeared that the Police had arrested him on fraud charges and wantd us to provide some background information. We were only too pleased to do so.

Since then I've come across other individuals who like to exploit people or the system. Some of them don't get their house licensed and don't pay sales tax......gives them a 12% advantage until theyare caught and the house gets red tagged by DBPR. That effectively means the guest is made to leave the property !

I don't want to worry anyone but I do want to point out some of the pitfalls when dealing with owners directly. As I said, the vast majority of owners are wonderful people who want to provide a truly fabulous vacation in their home. However, it is absolutely essential that these owners have a decent on the spot MC to back them up.

Back to the golden rules :

1. Is the home licensed by DBPR ?
2. In cases where you book direct with the owner, is there a local MC who can help in case of a problem ?
3. Is the MC a member of Central Florida Property Managers Association ?
4. Is the MC a member of Chamber of Commerce, Better Business Bureau , etc ?
5. How far is the house from the attraction parks and does this suit you ?
6. Can you see pictures and/or video of the house on the internet ?
7. Who is the money payable to and what happens in case of a problem ?

If you follow these simple rules, you will be ensured of a great time - wherever and with whoever you stay.

 

[FLeisure]

I should also say that there are some rogue MC's out there as well...so be careful. Ask all the above questions, check the credentials and make sure you know who you are dealing with and what you are getting.