(9/26/2011) - Vacation rental investment properties paid off so well
this summer more than one in three vacation rental owners plan to raise the
rent for the holiday travel season.
Travelers? Book early. Vacation rentals remain a better bargain than
hotels and motels.
The "HomeAway.com
Vacation Rental Marketplace Report" recently reported 84 percent of owners
say their rental business during the summer was about what they expected or
better.
More than two thirds of owners (68 percent) with vacation rental
properties in areas where summer is the peak season, reported occupancy
rates were at 76 percent or higher this summer.
By comparison, Smith Travel Research, Inc. a hotel industry
research firm, reported the average occupancy rate for U.S. hotels from June
to August was approximately 68 percent.
Among owners with vacation rentals in destinations where summer is not
the peak season, more than half of owners (55 percent) with properties
considered in "shoulder season" and 18 percent with off-season rentals
reported occupancy rates of 50 percent or higher.
Also, 22 percent of vacation rental owners say "it's going to be a jolly
holiday" for rental business during the upcoming holiday travel season.
Nearly a quarter of vacation rental owners' (24 percent) bookings for the
last four months of 2011 are higher than the same time last year, up from 16
percent in 2010. Approximately 44 percent of owners say bookings for the end
of this year are about the same as last year.
Forty-one percent of those owners who report higher bookings this year
are raising their rental rates; 52 percent are keeping them the same as last
year.
What's driving the higher occupancy rates?
Many travelers who have been on vacation from traveling during the
economic downturn are feeling more confident.
"For the last two to three or four years, the economy took a dive and it
made companies tighten their belts and trim the fat. Now they are operating
in a more efficient manner," said Christine Karpinski, real estate investor
and author of "How
To
Rent Vacation Properties By Owner" (Kinney Pollack Press, $26).
"While that left a fair amount of workers unemployed those who are
employed are feeling more secure in their jobs and feel now it's okay to
take a vacation," Karpinski added.
Vacation rentals also offer a home-like environment that can be more
accommodating and affordable than hotels, when considering the perks of
cooking, playing and entertaining in.
HomeAway reported an average weekly rental rate of
$1,685 or $241 per night, to book an entire home, typically with more than
one bedroom, a full kitchen and other square footage. Smith Travel said the
average hotel room rate was $101.99 per room.
Vacation rental owners also tend to
keep their homes updated.
More than half (56 percent) spent more money on improvements -- everything from interior and
exterior painting to new furniture and appliances -- to their vacation home
in the past 12 months than they did on improvements to their primary
residence, HomeAway found.
That's often because vacation rental owners are also "guests" and want to
maintain that homey feel for themselves.
HomeAway found most owners originally purchased their vacation home for personal use
(35 percent) or as a long-term investment (22 percent). However, after the
purchase, 66 percent of owners chose to rent to travelers to cover some or all of their
expenses.
Follow the link to continue reading the related articles
