subject: The Impending Decline of the Vacation Rental Industry [print this page] The Impending Decline of the Vacation Rental Industry
I never thought I would see the day where the vacation rental industry is actually in danger of becoming obsolete. For the last 5 years, the vacation rental industry has been growing exponentially, with an increasing number of listing websites and advertising services geared towards owners of vacation rentals, property managers, and vacation rental sales services. And while it seemed that at the time the sky was the limit, the latest economic downturn proved that perhaps this growing market behemoth was starting to show cracks.
The problem, you see, is that homeowners are now so desperate to rent out their homes that they are doing just about everything they can to get renters into their units. Craigslist advertisements state ridiculous prices of $100, $75, even $50 a night rental rates for entire homes! Why in the world would a home owner even want to open their private residence up to complete strangers for such rates? The wear and tear alone on their unit makes this a complete waste of time and in fact a terrible decision.
Why are these types of price points dangerous? The danger lies in the fact that because this is such a deregulated industry with no formal watchdog overseeing vacation rental transactions, the legitimacy of the industry is being increasing undermined and distorted. True value-added businesses suffer at the hands of these unsavvy home owners, who are only destroying the ultimate long-term value of their home by offering these types of rates. Where does it stop? If home owners are willing to rent out their home for $50/night, then obviously a case of beer or Pizza Hut coupons would also suffice. Your bemusement at that example is exactly how I feel when I hear about a 2 bedroom/2 bathroom unit in the Gaslamp Quarter of San Diego rent for $75/night, with no required damage deposit.
But that's not the only factor which is problematic with these types of rates and declining quality of the vacation rental industry. What type of quality control is being done by these owners at such rates, advertising on Craigslist? Will the unit be clean, have all of the advertised amenities, or even be in the advertised location? As consumers, vacation rental customers must be extremely wary about finding the lowest price rather than the best value for money. "Value for money" indicates not only that the pricing is fair, but also that the entire experience is done in a professional manner, ensuring the safety of both your vacation experience and your family.
Renting from a property manager or a vacation rental reservation service is still the safest way to vacation. The reason being is that you have some actual recourse if the property or transaction is not handled to your liking. With most private home owners who operate on a cash/Pay Pal basis, this security is non-existent. Be sure to ask how long the business has been operating and how transactions are processed. A good rental agency will have every answer to every question and can provide the sense of security upon renting that you want and deserve.
The bottom line is this - the vacation rental industry is in danger of falling apart. Without cohesive interaction on all level of the industry, from owners, managers, to an authoritative body, renting a vacation rental from anyone other than a vacation rental agency is a very bad and potentially dangerous proposition.
