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A new survey of former homeowners who have walked away from their homes found
that their credit was good enough after foreclosure for the vast majority to
rent new housing and few were required to make a larger than normal deposit.
YouWalkAway.com, which counsels troubled buyers to strategically default,
found that owners and managers of rental properties regard the influx of renters
in the market due to the housing market meltdown as a boon, and many are willing
to accept potential renters even if they do not have credit scores as high as
landlords previously would have required.
Some 81 percent of foreclosed owners were able to rent and 8 percent were
even able to buy a new property despite their credit history. Only 13 percent
experienced problems renting and 18 percent said they had to put down a larger
than normal deposit in order to get a lease. Most were living in smaller
quarters than when they were homeowners.
“Rental applicants with a foreclosure are now accepted with the proper
documentation,” says Tony A. Drost, president of the National Association of
Property Managers and owner of First Rate Property Management in Boise, Idaho.
“In fact, a former homeowner with a foreclosure is one of the best tenants. They
know how to keep up and care for the home since they have previously cared for
one.”
John Bradford, owner of Park Avenue Properties in North Carolina, says, “We
are seeing a slight increase in applicants with foreclosures, and our owners are
typically open to renting to those applicants. Poor credit, caused by a
foreclosure, has very little to do with having overall good citizenship, and if
the other credit history is reasonable outside the foreclosure, then the
applicant should be considered, possibly with other requirements like an
additional month’s deposit. In the end, a credit score is just one factor in a
balanced score card approach.”
Most of the former owners would like to become homeowners again, despite
their experiences. Some 56 percent said they would buy a house again, 38 percent
within the next five years. By renting, 58 percent said they are saving 30
percent or more in housing costs.
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This article is by Greg Rand of OwnAmerica.
With rents rising faster than last year, the picture for residential real
estate investors is getting even better than it already was as a result of
once-in-a-generation prices and low interest rates, according to the founder of
the leading Internet platform for investors and real estate professional.
Greg Rand, CEO of OwnAmerica, downplays concerns over near term price
declines and urges investors to take a long view of the opportunities.
“This is a long term investment,” says Rand, who differs with what he calls
the “get rich quick” approach to investing. “Rents are a steady return on your
investment through the years, leaving you with an attractive asset when prices
improve. And they will. The best profits in real estate accrue to long term
investors who take a long term view.”
Rents are growing at a 5.17 percent annualized rate compared to a 4.72
percent at this time last year Assuming effective rent grows at the same rate in
the next four months as it did in 2010, the full-year total would fall just
below the historic highs of 2000 (6.18 percent) and 2005 (5.81 percent),
according to a report from Axiometrics Inc., a provider of data and analysis on
the apartment market.
With 1.4 million new renters this year, apartment construction can’t keep up
with demand. Tenants, especially former homeowners forced from their homes
because of the economy, are increasingly turning to single family homes owned by
investors, especially in high foreclosure markets like Las Vegas.
During this year, investors have accounted for between 20 and 40 percent of
monthly existing home sales, according to surveys of Realtors by Campbell/Inside
Mortgage Finance and the National Association of Realtors. Yet, the investor
market share may increase even more next year.
A survey by Realtor.com in April found that by a three to one margin,
investors plan to be more active in their local markets compared to typical
homebuyers in the next 24 months, and 69 percent of investors say it’ll be
easier to find properties in the near future.
Most investors are newcomers. Fifty-nine percent (59%) said they’re new to
real estate investing, with 33.5 percent considering their first investment
purchase and 8.5 percent in the process of buying and selling their first
investment property. Another 17 percent said they just completed their first
transaction and plan to make more. Only 36.5 percent have experience in more
than one property transaction.
Author of “Crash! Boom,” Rand argues that even in the Great Depression,
owning real estate was always better than not owning real estate. Holding real
estate for the long term has always been a formula for success and most family
wealth has been accumulated by purchasing real estate and keeping it in the
family for many generations. Real estate plus time usually equals success.
There are 6 million people who went from being owners to being renters, Rand
says. “The stars are aligned to make this the best time in modern history to be
a landlord,” he wrote in his book.
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This article is by Nick Timiraos of the Wall Street Journal.
Housing markets that have seen the biggest plunges on home values have topped
a new ranking of the best markets for rental-property investors.
Las Vegas, where home prices are down by more than 50% from their market
peak, offers the best returns on homes maintained as rental properties,
according to the report from HomeVestors of America, a property-investment firm,
and Local Market Monitor, a real-estate data firm.
The ranking takes into account the potential home-price appreciation and
gross rents to forecast the performance of rental properties, specifically
single-family homes that are rented out.
Rounding out the top five markets are perennial economic trouble-spots
Detroit and Warren, Mich. along with housing boom-to-bust cities Orlando, Fla.,
and Bakersfield, Calif. Home prices in those markets have fallen below their
2000 levels, creating opportunities for investors to compete with existing
housing stock.
But those markets also carry sizeable risks for investors, including the
prospect of continued home price weakness. Vacancies are also high—rental
vacancies are at 12% in Las Vegas at 19% in Detroit—underscoring the need for
job growth to pick up.
The survey comes amid fresh signs that the rental investor is increasingly
dominating hard-hit markets. Home price declines first began attracting big
investor activity two years ago. Many buyers looked to buy distressed homes at a
discount in foreclosure auctions from banks before fixing them up and reselling
them quickly.
But faced with increased competition from other home flippers, investors have
increasingly turned to buying homes that they can rent out for a few years.
Those sales are far more sensitive to price, requiring deeper discounts to
ensure that the rental income can cover the cost of property upkeep.
Total Las Vegas home sales hit a five-year high in May, according to
DataQuick, a real-estate data firm, with the market fueled by low-priced homes
that can most easily be converted to rentals. Around four in 10 sales went for
less than $100,000, up from three in 10 sales last year.
According to DataQuick, home re-sales activity hit a six-year high for the
month of May in Phoenix, which ranked as the seventh best rental-return market
in the HomeVestors analysis. Like Las Vegas, nearly 40% of sales went for less
than $100,000, and absentee buyers accounted for around 45% of all
purchases.
Other top rental markets, according to the survey, included Tampa, Fla.; Ft.
Lauderdale, Fla.; Rochester, N.Y.; and Stockton, Calif.
Top 10 markets for rental-property investors
1. Las Vegas
2. Detroit, Mich.
3. Warren, Mich.
4. Orlando
5. Bakersfield, Calif.
6. Tampa-St. Petersburg
7. Phoenix
8. Ft. Lauderdale, Fla.
9. Rochester, N.Y.
10. Stockton, Calif.
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With winter weather creeping in, landlords should be aware of exactly what their
landlord insurance policy covers.
Many building owners could be surprised at what costly items are not covered
in a standard policy, especially with high fire hazard months ahead. Residential
fires are more prevalent in winter months than in spring or summer months,
according to the U.S. Fire Administration. A residential fire can completely
destroy a structure and all of its contents, which may not be covered by a
policy.
LandlordInsurance.net points out some costly items that may not be insured
under a policy.
Fires in homes increase in colder months mainly due to the higher number of
cooking and heating fires. Heating a home becomes more expensive in the winter
so people turn to their fireplaces, wood stoves, space heaters and other cheaper
alternatives to common utilities. Although these can be a good option, they do
come with risks that are preventable. Safety precautions must be taken to avoid
residential fires.
However, accidents do happen and policies vary from company to company. Many
property owners would think that their landlord insurance policy would cover the
financial damages from a fire. A basic policy will likely cover the building
itself, whether it is a house, apartment, duplex, townhouse, quad, condominium
(condo), vacation rental or other dwelling. But usually the contents within the
building must be insured under a separate section.
In addition to the structure, any personal contents that are provided by the
building owner for use by the renters should be covered by liability protection.
The landlord contents insurance can have a limited or full contents policy.
Limited contents policies are generally used for unfurnished or partly furnished
properties and will typically cover items such as light fixtures and fittings,
curtains, carpets and appliances. Regardless if the unit is sparsely furnished
with such items, an owner should consider liability coverage in case of injury
to tenants or guests caused by defective cookers, lighting fixtures, or stairs.
If there was an incident, the compensation of the claim would be
substantial.
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This article is by Alyssa Abkowitz at SmartMoney.com As the owner of several rental villas in Italy,
Lisa Byrne is no stranger to investment properties. So when the San Franciscan
saw a growing vacation market in her own backyard, she snapped up a fixer-upper
for under $2 million. Though remodeling costs are bound to set her back, she's
not worried about recouping the money. Why? She paid in cash a sizeable sum but
one that eliminated pesky mortgage payments and will let her keep more of the
rental income.
Though investment properties have struggled in the down economy, real estate
agents in destinations like Palm Springs and Palm Beach are starting to see
bursts of activity again, with a common thread in many second-home markets: Cash
is king. After sitting on the sidelines for two years, buyers with discretionary
income those who don't have to choose between, say, helping send Johnny to
college and nabbing that lakeside cottage are becoming card-carrying members of
the mortgage-free crowd. Indeed, almost 60 percent of investment-home buyers
bought with cash last year, up from 48 percent in 2009.
The cash craze isn't surprising. After all, trying to get a mortgage these
days particularly on a second home is harder than trying to get a raise.
According to data firm CoreLogic, the number of second-home mortgages issued in
2010 is down 73 percent from its peak, in 2005. At the same time, the median
price among investment properties has fallen three years in a row, making even
waterfront manors more affordable. Some stubborn sellers are even demanding
cash-only deals. "It's the expectation in the higher end of the market,"
says Bill Yahn, a senior vice president of the Corcoran Group in Palm Beach,
Fla.
Of course, the biggest advantage of paying in cash aside from not having
debt, obviously is the increased likelihood that the deal will go through. A
cash offer almost guarantees a smoother transaction, since people don't have to
wait on financing or pay higher closing costs. That gives buyers an upper hand
in price negotiations, says Jack McCabe, a real estate consultant in Florida.
For investors who plan to rent out the home, paying cash leads to no mortgage
payments and thus more take-home pay an average $35,000 a year, based on
HomeAway.com user stats. And should money get tight, cash buyers can refinance
at another time, brokers say.
But with mortgage rates at historical lows, some experts say paying cash is,
as adviser Matthew Tuttle puts it, "an awful idea." For one, it diminishes a
homeowner's liquidity: It's much easier to get money out of, say, stocks than a
house. Also, some pros say returns on other investments are better than being
mortgage-free. These notions rang true for Margaret and Bob Early, who could
afford to pay for their three-bedroom Hilton Head, S.C., home with cash but
opted for a loan. It just didn't make sense, Margaret says, "to let go of that
lump sum of cash."
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This article is by Discover Vacation Homes.
From Pittsburg to Green Bay and beyond, the word is out: vacation rentals offer
a travel lifestyle unlike any other, providing unmatched space, amenities,
services and privacy. In fact, the customizable vacation possibilities are
endless, according to experts from Discover Vacation
Homes, a resource for vacation rental travel information.
For example, while many guests today find “home away from home” familiarities
like bath toiletries, fresh linens, personal concierges or even options for
childcare, additional perks might include free bicycles, private pools, in-home
movie theatres with DVD rentals, or access to a fitness center with an indoor
water park.
It’s easy to become overwhelmed with the millions of vacation rental choices
online, many listed from companies or individual owners that offer various
strengths and weaknesses. Here are five important questions to consider when
planning a vacation rental trip:
1. Is there a rental agreement? Review the terms and conditions of the rental
agreement carefully. If there is any doubt in your mind, check with the state
and/or local municipality to confirm whether the manager or owner has a business
license and is paying lodging taxes.
2. If I have questions during my stay, do I have someone I can call for
assistance? Established companies will offer an emergency guest services contact
that guests can call 24 hours a day, seven days a week, for questions,
maintenance issues and more.
3. How do I know if I’m getting reliable services and facilities? Look for
third-party endorsements on vacation rental websites, including membership in
industry associations like the Vacation Rental Managers Association, Better
Business Bureau (BBB) and local tourism or property management groups. You can
also request and evaluate past guest reviews, comments and references.
4. How do I make a reservation? You should be offered standardized, secure
phone and/or Internet reservation systems, with the ability to accept major
credit cards. Security deposits can also be expected.
5. Should I go with a professional? Choosing a professionally managed
vacation rental will ensure that you get consistent hospitality services and
quality assurance standards. In addition, going through a professional will
guarantee that your vacation rental is professionally cleaned and managed, while
at the same time assuring you that there are ongoing and objective inspections
and concierge type services that provide destination expert advice.
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This article is by Greg Rand who is CEO of OwnAmerica.com and former managing partner of Better Homes
and Gardens Rand Realty. Everybody wants to be an entrepreneur, but no one wants to be a landlord. What’s
up with that? As if tenants are some kind of outcasts who bring a chill to your
spine with just the sound of their voice. “I don’t want to hear them complain
when the toilet backs up!” “Being a landlord is a hassle!”
It’s really silly if you think about it.
Consider this: A fitness nut who has dreamt of being an entrepreneur finally
takes the plunge and starts a personal training business on a part-time basis.
But there’s a problem. In his words, “I hate people who are out of shape. They
make me sick!”
Or a gardener who opens her own landscaping company and sees her customer
sitting on a chair in the back yard taking a nap and thinks, “How lazy can you
be!”
Or a blogger who gets a ton of comments and thinks, “I don’t have time to
respond to all these people. What a hassle!”
It’s ridiculous, right? These are the customers. You are supposed to hug your
customers. This is what we have all been taught.
So why are tenants not given the same reverence? If you own a simple
investment property, your tenant isn’t just your customer—he might be your only
customer. And when he calls because the dryer broke, or the roof leaked, or even
the dreaded toilet backed up, shouldn’t any entrepreneur worth their salt jump
at the chance to make it right?
Success in real
estate investing, and in life in general, is all about perspective. If your
approach to real estate is to make quick money with no risk and no landlord
hassles, you have it all wrong. The correct perspective is to see this as a
small business.
A small business, by definition, is not a short-term endeavor. By definition,
it requires some of your time and effort if you expect to make money. By
definition, if you get a customer, consider yourself lucky and treat them
accordingly.
This is important because there are millions of people out there who believe
in real estate as the best long-term investment, but too many people won’t ever
do anything about it. At OwnAmerica, we did an informal survey to find out why.
The top three answers were as follows:
1. I don’t know how. (Which is why OwnAmerica was formed).
2. I don’t have any money.
3. I don’t want to be a landlord.
I think it’s time for a little perspective. Making a single investment that
can, by itself, secure a college education or comfortable retirement is worth a
little hassle. Don’t you think?
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In a sign that the housing market is finally making a major move in a positive
direction, vacation home markets—some of the most battered in the real estate
downturn—are making a surge higher in many of the hardest hit areas of the
nation. Condominium sales in Hawaii and Florida are
surging higher even as some potential buyers remain hesitant about the
economy.
Two month’s into the New Year, existing condo sales in Oahu jumped nearly 21
percent as the median prices on units moved 7 percent higher than year ago
levels—a reversal of trends—according to the Oahu Realtors Association. Closed
transactions of existing condos in Miami also soared 58 percent higher in
February compared to a year ago.
Across Florida, sales jumped 29 percent on condos and 13 percent for single
family homes as historically low mortgage rates and lower
prices brought buyers back to the marketplace. Seven out of 10 sales were of
either foreclosures or bank assisted short sales, and half of all sales were
paid for in cash without bank financing.
As a result, home prices continue to plummet throughout most of the state. In
Miami the median price of a home is down 23 percent from a year earlier, while
condos are off 25 percent, despite a slight 3 percent increase in value during
February. Some areas of Miami are, however, beginning to see price appreciation,
especially along the highly demanded waterfront, where 67 percent of sales were
non-distressed.
“Compared to a year earlier the median and average sales prices increased 12
percent and 22 percent respectively,” says Miami Realtor® President Ralph
DeMartino.
“We are even seeing instances in certain neighborhoods with multiple offers
above asking price,” says Jack Levine, the Realtors® chairman. While the Miami
market shows growing signs of pulling out of its near six year downturn, Hawaii
will have to turn the corner before its fortunes fully recover. But many areas
of the state are demonstrating strong improvements.
Existing single family home sales are rising in Oahu and condo prices are
higher, but doubts about the Hawaii market persist as a result of the massive
disasters in Japan—which Hawaii is dependent on for much of its economy,
including real estate purchases.
On the Big Island and Kauai prices on condos fell in February, mainly as a
result of lower priced foreclosures selling even as sales surged 12 percent for
the month. Sales were the strongest for single family homes. “We’re definitely
seeing continual strengthening of the market as more buyers are taking advantage
of low prices and low rates to buy second homes and vacation homes,” said Jeff
Proster, president of Brookfield Homes in Hawaii.
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After several years of negative trends in the real estate industry,
a recent market study shows signs of increasing consumer confidence. The third
annual Cotton Report polled more than 800 participants on housing preferences,
motivating factors, pricing levels and timelines for purchase. The survey
included participants from 39 states, as well as Canada, Europe and Latin
America.
While no direct correlation was made to the harsh winter temperatures, the
research survey indicated a substantial increase in the number of homebuyers
seeking a vacation home purchase, an increase of 800 percent year-over-year.
This dynamic trend is further supported by an increase in the number of
buyers describing their transition as a geographic relocation, now 40 percent.
Over the three-year-period of the annual research study, a continuous trend
towards smaller homes has been noted with the most popular size home now being
1,700 to 2,299 sq. ft. Homes ranging from 1,000 to 1,699 sq. ft. saw an increase
of 5 percent in interest levels from 2010 to 2011.
The Cotton Report also shows signs that pricing levels have adjusted to meet
consumer expectations. In 2009, respondents indicated the need for a 50 percent
reduction in order to re-enter the market. In the 2011 survey, this level of
price reduction has changed dramatically with the median response being a 20
percent reduction. This trend was also reflected in the consumer’s timeline to
purchase. In 2011, 25 percent of the respondents reported they would be
purchasing within six months, an increase from just 4 percent at the same time
last year.
The annual consumer report is compiled by Cotton & Company, a 28-year-old
firm specializing in the marketing and sales of residential real estate
throughout the United States and the Caribbean. Stephann Cotton, the firm’s
President, notes “The adjustment of pricing to realistic levels has brought
buyers and sellers closer together. These price adjustments combined with the
brutal winter up north have resulted in strong sales in many of our resort
residential properties.”
While questions remain in the US mortgage market about the future of the
30-year-mortgage, the survey indicates that 36 percent of the respondents plan
to utilize a 30-year-mortgage to make their purchase. An equal 36 percent are
cash buyers with 21 percent indicating plans for a 15-year-mortgage.
“One of the most dramatic changes in buyer psychology was seen in the
responses from those who are uninterested in a real estate purchase,” says
Laurie Andrews, Cotton & Company’s COO. In 2010, 96 percent of these
respondents cited economic conditions or political instability as the reason for
not purchasing. In 2011, this number was cut in half with 46 percent of the
respondents now indicating that they have no desire to move. “These results show
buyers are beginning to separate the home
buying process from the economic instability.”
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This article is by Christine Karpinski of Home Away.
More and more people are investing in vacation homes today. And no wonder:
between unbelievable real estate prices,
low interest rates, and a rapidly growing base of potential customers,
vacationers who’d rather stay in a charming beach cottage or woodsy cabin rather
than a hotel room—there’s never been a better time to buy. But here are the real
questions to consider before you purchase a vacation home: Is the lifestyle that
comes with owning and managing a vacation rental home right for you? Do you have
the right personality for the job?
Christine Karpinski, director of Owner Community for HomeAway, a leading
online vacation home rental marketplace, and author of How to Rent Vacation
Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish,
Rent, Maintain and Advertise Your Vacation Rental Investment urges
homeowners to ask themselves a serious of questions to determine whether they
should consider buying a vacation rental.
Am I patient? It’s important to recognize that your vacation
rental is not going to be a “get-rich-quick” opportunity. The most profitable
vacation rental owners are patient and keep their focus on the long-term
potential for profiting from their homes.
Do I have five extra hours a week to spare? That’s about how
long it takes to manage your property during peak season—a job that involves
answering inquiries, taking reservations, managing staff, and so forth.
Am I willing to do business on a week-by-week basis (rather than
year-by-year)? Managing a vacation rental is nothing like being a
full-time landlord. You won’t have tenants with year-long leases. In fact, for
the most part, your guests will be gone in a week or so. Every week presents a
new opportunity to be successful and impress new guests. You have to be ready to
meet that challenge head-on.
Am I detail-oriented? You need to be, if you’re going to be
a good vacation homeowner. Guests expect a certain level of quality. Be prepared
to regularly visit your property to make sure your on-site staff is keeping it
in excellent shape and to freshen it up as needed.
Can I follow a marketing plan? Fortunately, you don’t have
to be a professional marketer to follow simple instructions. Just as
fortunately, the days of old-school newspaper advertising are over. These days
there are many easy ways to market your vacation rental property.
Am I responsive? You have to grab opportunities right away.
Potential renters will more than likely inquire about more than one property,
and in order to be the owner who closes the deal, you have to act like any great
entrepreneur and be the first to return the call.
Am I personable? Building trust is a huge factor in the
vacation rental industry. Making people comfortable when they are renting your
home is a must.
Am I a good people manager? If you’re a long-distance
vacation rental owner, you must be prepared to hire and manage a productive
“staff”—which means housekeepers, lawn care people, plumbers, and so forth.
Building a great staff and making sure they understand what you want to achieve
with each guest will ease your anxiety and make your renting experience truly
enjoyable.
Am I okay with managing from a distance? For many people,
their vacation property is hours (and many miles) away from their primary
residence. As long as you have the right on-site staff in place, it is easy to
manage your vacation property from far away.
“Being a vacation rental property owner isn’t for everyone,” says Karpinski.
“However, for many people, it’s a fantastic way to invest money, earn extra
income, make new friends, and truly experience different parts of the country.”
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Increasingly, Americans are entering the age of retirement without enough
savings to do so comfortably. However, it is never too late to focus on life
stage retirement planning to make the golden years glisten much more.
Here are some tips to help from retiremenplanning.net:
1.
Saving should be a top priority. Some people may have procrastinated
while others hit some bumps in the road. Either way, the closer a person gets to
retiring, the less working years they have and less time to save. One should
look at finances, consider needs and wants, and reprioritize.
2.
Delay retiring, especially if you started saving late in life. This is
beneficially for Social Security and health insurance purposes. Social Security
income is adjusted for inflation, tax efficient and guaranteed by the federal
government. Every month a worker is able to put money toward this benefit, up to
the age of 70, the more savings will accumulate. If an employer-sponsored health
care plan is superior, depending on their situation, one can save a great deal.
When retirement planning, people often forget that Medicare does not cover every
needed item, which can be very expensive.
3. Reconsider
investments. Whether to invest aggressively or conservatively is a
tough decision at any age, but especially for someone who is creating a
financial plan later in life. One may invest aggressively to make up for lost
time while another may shy away from risk because they don't want to lose what
little they have saved. Risky speculation and eroding inflation are heavy
considerations. The sound advice from a professional in the retirement planning
field should be considered to make the right calls.
4. Take
advantage of tax-efficient plans. Taxes can quickly chip away at
savings. People entering an age to retire should especially consider as many tax
efficient plans as possible, such as a 401k, Roth IRA and traditional IRAs.
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According to a recent survey by TripAdvisor, one of the world's largest travel
sites, some 40 percent of respondents said they are planning a vacation rental
stay in 2011, indicating that rental homes are poised for a busy year ahead.
Thirty-three percent of travelers said they stayed in a vacation rental in
2010. Here are some stats and tips that you can use to maximize
the use of that vacation rental home: Grab Your Beach
Umbrellas Summer projects to be the most popular season for
vacation rental stays in 2011, with 52 percent of U.S. travelers planning a
rental home stay during the warmer months. In addition, 47 percent of
respondents are planning to stay in beachfront villas, making them the most
popular vacation rental type for 2011. The most popular U.S. region for rental
stays in 2011 is the Southeast (31 percent) according to the survey. This was
followed by the Southwest and the Northwest, which came in second and third,
respectively. There's No Place Like (a Rental) Home
When asked what travelers liked the most about vacation rentals as
a lodging option: • 28 percent cited more space • 23 percent of travelers
enjoyed having access to a full kitchen • 13 percent liked that rentals were
often less expensive than hotels In addition, 41 percent of respondents
said vacation rentals were the best option for a trip when staying in a
destination for a week or more, while 33 percent thought they were the best
option when staying with a large group.
Early Bird Catches the
Worm Twenty-nine percent of travelers either always or often stay
in the same rental year after year. Of the travelers who stayed in a vacation
rental in the past: • 22 percent booked their rental home more than six
months prior to the trip • 34 percent of travelers booked their rentals
between three and six months out • 22 percent booked between one and three
months out • 2 percent of travelers booked their vacation rental less than
one month out Let's Make a Deal (Over a Hotel Stay)
Eighty-seven percent of respondents said they would choose to stay
in a vacation rental over a hotel if it were significantly less expensive. In
addition, 80 percent of travelers would book a last- minute vacation rental stay
if they found a great deal. Living the Life If
travelers had their pick of luxury vacation rental features: • 51 percent
would choose a rental home with a private beach • 12 percent would choose a
rental home with maid service • 9 percent would choose a rental home with a
hot tub • 8 percent would choose a rental home with a personal
chef Fight For Your Vacation Rental Rights With New
York City poised to impose a ban on short-term vacation rental stays in 2011,
the topic is sure to be top of mind for travelers visiting the city this year.
According to the survey, 92 percent of respondents don't think cities should
limit travelers' access to short-term vacation rental stays. Know
Before You Go When deciding between different rental properties,
the key influences cited by respondents are: • Photos of the home (42
percent) • Traveler reviews (27 percent) • Cost of staying at the
properties (13 percent) Over the Internet and Through the
Grapevine Most travelers find out about vacation rental properties
on the Web, both on vacation rental property websites (70 percent) and online
travel websites (55 percent). In addition, 25 percent of respondents find out
about particular homes by word of mouth from friends and
family. Still Room to Grow When travelers who hadn't
stayed at a vacation rental in the past were asked why not: • 22 percent said
they simply had not thought of staying at a rental home for a trip • 14
percent said they had a better idea of what they were getting when staying at a
hotel • 12 percent thought hotels had better amenities than vacation
rentals When asked what would make them consider staying at a rental home
in the future, most respondents (30 percent) went with their wallets and cited
lower prices than hotels
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It's that time again: you're thinking about building fires in the fireplace,
bundling up in your warmest sweater, sipping hot cocoa while you watch the snow,
and fretting over that unrented vacation home. While T.S. Eliot may think that
April is the cruelest month, for many vacation property owners, any month
between now and Memorial Day would qualify. That cabin or condo that renters
clamor over all summer tends to sit depressingly (and expensively) empty all
winter. However, Christine Karpinski, director of Owner Community for
HomeAway.com and author of How to Rent Vacation Properties by Owner, 2nd
Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and
Advertise Your Vacation Rental Investment, believes that it’s often the
little touches that draw winter renters, delight them, and keep them coming back
for more. Here are some of Karpinski’s tips for making your vacation
property appealing to winter renters: Winterize your
marketing. It won’t matter how perfect your place is for a mid-winter
getaway if people don’t know about it. If you’re like many vacation property
owners, you’re already listed on at least one “rent by owner” website, so make
the most of your exposure. Play up features like hot tubs and fireplaces.
Sprinkle copy with words like warm, cozy, cocoon, snuggle, and cuddle. Finally,
add a few “off-season” photos of your property to your website. Photos of the
home framed in brilliant autumn leaves or dusted with snow will speak louder
than a thousand poetic words. Consider off-season
specials. Everyone loves a bargain, and in the winter, they expect one.
“My favorite off-season booking magnet is ‘rent three nights and get one free,’”
says Karpinski. “Or, when you get a call from someone looking to book for next
spring or summer, offer them a winter special—say, half-price off a weekend
stay—so they can come check out the place early. That would be tough to
resist.” Add warm, cozy touches. Put thick, warm
comforters on the bed and fleece throws on the sofa. Place a few spice-scented
candles on tables or countertops. Leave savory winter treats in the kitchen:
cocoa mix and marshmallows, spiced apple cider, ginger cookies, chili fixings,
and a crock pot. You might even consider leaving an extra coat or two in the
closet, along with toboggans, gloves, and scarves—chances are they won’t be
used, but guests will appreciate the hospitality. Plan for
snow. If guests should happen to get snowed in at your home, you want
to make the experience as pleasant as possible. Make sure to have a snow shovel,
ice melt, and a windshield ice scraper on the premises. The possibility of
inclement weather is a good reason to have a selection of nonperishable foods on
hand, as well as movies and books. You certainly don’t want a houseful of
hungry, stir-crazy, cranky renters who are cursing their vacation experience
(and by association, you). Consider adding a hot tub, sauna, or
ventless gas fireplace. If your vacation property is a “summer home”
with no winter appeal, such additions can make a world of difference. You may be
thinking that these are pricey upgrades, but you’ll be amazed at how fast they
pay for themselves via increased off-season bookings. If you install a ventless
gas fireplace, be sure to get a carbon monoxide detector as
well. Make your home baby- and toddler-friendly. You’ve
probably noticed that people with very young children are more likely to travel
off-season. (After all, they’re not constrained by school schedules). Appeal to
these people by including baby and toddler paraphernalia. A high chair and a
porta crib should cost less than $150 combined, and can drastically increase
your off-season bookings. Accept pets. Vacation
properties that accept pets increase their occupancy by 10-50%. When you accept
pets, it’s okay to take an additional $20-$25/night or $140 to $175/week. This
extra (which pet owners would have to spend anyway on boarding fees) is enough
to pay for any carpet cleaning that needs to be done. Offer a
“customized” special to repeat guests. If you’ve tried everything and
you still have lots of weeks unbooked, it’s time to get creative. Consider
calling or e-mailing prior “VIP” guests and offering them discounted off-season
stays. You might even link the stay to a special event in their lives. For
instance, if you know that John and Jane Smith have an anniversary in
March—thanks to the detailed file you keep on them—call them and offer a special
celebratory weekend at a reduced rate. When they accept, have a champagne gift
basket waiting for them in the bedroom along with a handwritten “Happy
Anniversary” note.
Not sold on winter renting? Consider
it “damage insurance.” All of that said, some people actually prefer to lock up
their place for the winter. Maybe they don’t think renting is worth the effort,
or maybe they make enough money during peak season to pay their mortgage for the
year. If this is your mindset, Karpinski suggests you reconsider—winter renting
can ward off property damage.
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Portfolio.com, a national business news site for small and mid-sized business
(SMB) executives revealed its latest “U.S. Uncovered” study, ranking the most
popular and desired cities for retirement. The study, which used a six-part
formula to rank 157 metropolitan and micropolitan markets with at least 40,000
seniors, named Bradenton-Sarasota, Florida as the number one choice for seniors’
post-retirement plans. “Beginning next year, an unprecedented three
million Americans will turn 65. While most of these seniors are expected to stay
in their current homes, a significant number will decide to seek new places to
live in other parts of the country,” said J. Jennings Moss, editor of
Portfolio.com. “In addition to warm cities, we’ve also noticed that seniors are
attracted to communities that already have a significant population of retirees.
This demonstrates that seniors will go to places that already have a comfortable
infrastructure in place.” Already thought to be the classic retirement
destination, the state of Florida is home to eight of the top 10 cities in the
survey, with Bradenton-Sarasota taking the top spot. Senior citizens represent
26.81% of the city’s population, which is more than double the national average
of 12.9%. With a population of 688,126, Bradenton-Sarasota is the largest city
among the top 10, while Homosassa Springs, Fla. (#7) is the smallest with a
population of 140,357. More than 95% of seniors residing in Bradenton-Sarasota
were born out of state compared to only 53% of the elderly residents of a
typical U.S. market who were born out of state. The 10 most popular
retirement cities: 1. Bradenton-Sarasota, Fla. 2. Prescott, Ariz. 3.
Lake Havasu City, Ariz. 4. Cape Coral-Fort Myers, Fla. 5. Naples,
Fla. 6. Palm Bay-Melbourne, Fla. 7. Homosassa Springs, Fla. 8. Ocala,
Fla. 9. Punta Gorda, Fla. 10. Port St. Lucie, Fla. Two cities from
Arizona earned a place in the top 10. Prescott, Ariz. ranked #2 in the study
with 23.6% of its population comprised of seniors. Lake Havasu City, Ariz.
followed directly behind taking the #3 spot. The rest of the top 10 are occupied
by Florida cities including Cape Carol-Fort Myers, Naples, Palm Bay-Melbourne,
Homosassa Springs, Ocala, Punta Gorda and Port St. Lucie. “The study
explores a wide variety of markets, both in terms of size and geography. The
markets that ranked the highest in the study were areas where the population of
seniors is already substantial and growing rapidly,” said G. Scott Thomas, a
nationally-recognized demographer who created the analysis for Portfolio.com.
“While not surprising that many cities in the top 30 were from the southeast and
southwest, there are several cities that have broken the stereotype of beach
retirement communities including Seaford, Del. (#13), Barnstable, Mass. (#14)
and Eugene, Ore. (#29) from the north.”
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With winter months ahead, renters should make certain they have a contents
insurance policy that covers fire damage. According to the U.S. Fire
Administration, residential fires are more prevalent in winter months than in
spring or summer months. A residential fire can completely destroy a home and
all of its contents. RentersInsurance.net discusses the importance of having a
comprehensive policy. Residential fires are more common in winter months
partly because of the increased number of cooking and heating fires. As the cost
of heating homes increases with the colder temperatures, people will turn to
using fireplaces, wood stoves, space heaters and other cheaper alternatives to
expensive utilities. Although these are valuable options, they do come with
major risks that are preventable. Safety precautions should always be taken to
avoid residential fires. Fires are detrimental to a home. If the entire
complex and contents are not destroyed by the flames, they likely will be by
smoke or water damage. Many people who rent think their personal belongings are
covered by their landlord's insurance policy; however, this is generally not
true. Unless a landlord has a specific rider in their policy that covers their
tenant's contents and belongings, the responsibility of replacing the items is
that of the renter. This is why a contents insurance policy is
necessary. Replacing all the items inside a home is expensive. A renter
should consider the cost of their computers, televisions, DVD players,
electronics, furniture, kitchen appliances and supplies, clothing, jewelry, and
other items that would need to be replaced. Most people cannot afford to do so
without assistance from a contents insurance policy. Standard renters
insurance policies cover 16 types of perils, one of which is fire. A general
policy covers the following: fire or lightning, windstorm or hail, explosion,
riot or civil commotion, damage caused by aircraft, damage caused by vehicles,
smoke, vandalism or malicious mischief, theft, volcanic eruption, falling
objects, and weight of ice or snow or sleet. They also cover specific water
damage, plumbing damage, and electrical current damage. These items all are
covered on a standard policy for the average of $10 to $20 a month.
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