Vacation Properties Phoenix AZ
Layaway Plans Lure Vacation Rental Guests
Vacation Properties Come With Extra Expenses
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Layaway Plans Lure Vacation Rental Guests
by Broderick Perkins
Vacation rental owners pinched by this summer's travel season squeeze, may want to consider a new option for attracting guests -- the Layaway Vacation Plan.
Retailers are doing it, so why not vacation rental owners?
Get guests to opt for an installment payment plan now so they can secure their vacation later.
Not only will stretching out the payments be easier on guests' travel budgets, it'll also keep vacation property owners from guessing about occupancy next year.
This summer past, thanks to the lingering soft economy, many vacation rental owners were besieged by vacation and daycation bargain hunters. And that force some property owners -- who didn't plan ahead -- to succumb to accepting lower rates than preferred.
"Obviously, the best way to avoid last-minute hagglers who want your place for a song is to make sure you're booked up well in advance," says Christine Karpinski , director of Owner Community for HomeAway.com , a vacation rental portal for property owners and travelers.
"And one way to set yourself up for success is to make it as easy as possible for budget-conscious travelers to choose your property," added Karpinski, author of "How to Rent Vacation Properties by Owner" (Kinney Pollack Press, $26.00).
Vacation travelers typically have more discretionary cash than those who don't travel, but coming up with a lump sum that amounts to a few thousand dollars is daunting even for them in today's economy.
Karpinski suggests the following approach:
• Instead of asking for the traditional 50 percent down, get 20 percent down and divvy up the rest in monthly installments. Charge a small administration fee of, say, $25 for the installment plan effort.
"Today, if you require 50 percent down, you could alienate potential renters who might have booked with you if you had offered a payment plan. You never know how many great guests might be passing you up because of your inflexible payment policy," Karpinski says.
• Use a solid contract. Vacation rental owners should already have a solid rental agreement. Update it with a new payment plan option that includes the down payment amount, amount and date due of monthly installments and a cancellation policy. Include a contractual provision for your right to cancel the reservation and to recoup a portion of what's paid, should the guest miss a payment.
Karpinski says you can decide to be flexible and allow slow-paying guests to catch up, or you can decide to refund money already paid -- but the contract locks down the terms.
"The contract just lets everyone know up front what to expect, so there are no misunderstandings and no surprises," she says.
• Suggest travel insurance. Some guests do face emergencies and must cancel their vacations. Vacation property owners should be informative and make a strong travel insurance pitch along with any payment plan. The guest buys the insurance, but the property owner can include travel insurance information in early co...
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Vacation Properties Come With Extra Expenses
by M. Anthony Carr There's nothing like a short jaunt to the beach (or mountains) to release your stress, get your first seasonal sunburn and start thinking about buying a piece of vacation rental property. Come on, we've all done it. Just when the sand is about completely shaken out of all the towels and swimsuits, you start drooling over the prospects of owning your own home on or near the water. How difficult could it be? If it's a rather affordable area, then it's going to take care of itself as far as monthly payments are concerned, right? Twelve prime rental weeks from Memorial Day to Labor Day is just the right amount of time and income to cover the 12 months of the year, right? Keep in mind that a vacation rental property has some unique expenses that you'll not face in your primary residence. Your cost of housing isn't just the purchase of the land and lot, but also everything that's in it. If you want repeat renters, then it's got to be nice -- every time. At least check out auctions/sales from used hotel furniture before heading to the new furnishings store. Some investment sales include all the furnishings so you don't have to go shopping. But remember that you're renting out a property as a place for people to relax and think about nothing -- especially about the frayed couch coverings, bad springs in the master bedroom and leaky faucet in the bath or kitchen. Your house has to compete with the likes of at least a nicely furnished and operated local hotel. In between each rental, you're going to have to have the dwelling cleaned out. Through the summer, unless you've had 12 groups of very conscientious vacationers, you're going to have to have the place shoveled out at least a dozen times. The cleaning is more than just what you would do to prepare for dinner guests. These guests are paying you $150 to $300 per day for a week of vacationing – it better be as clean as a brand new home. This means a gleaming kitchen and bath, fuzz-free carpeting, crystal clear windows and a fresh smell throughout. After these folks have paid you to live on a weekly basis in your home, then you've got to come in and repair what they have broken. What you're used to seeing at your home now, may not cut it in your vacation property. They expect to see near-new carpeting or flooring, meaning that if it's getting worn, it's time to replace it. Peeling paint? Repaint it. Mildew in the bath? Re-caulk it. Sun-burned or algae-covered decking? Blast and stain it. These are not necessarily inexpensive repairs, but this property is now a commodity. A commodity that you want your customers to be banging on the door each year to rent. Just like your house at home, you are going to have to keep up the property. Hopefully, you've charged enough weekly rent to carry, not only your mortgage payment, but also the costs of carrying association dues, water, trash, ele... |
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