Vacation Homes In High Demand

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The owners of this property share their vacation home with paying guests when not using it themselves. It has been a win – win scenareo for over ten years and the rental income helped to offset a total remodel of the property in 2014..

Today I’m sharing an artical that recently appeared in The Journal Gazette with some interesting facts and statistics.  I often receive calls from prospective owner-clients, asking for insights into our local vacation rental market; some prior to buying a property and some who are thinking of renting out the property they already own.  It is absolutely amazing how rapidly the vacation rental market has exploded over the past few years … and is still growing … both as a personal and a financial investment, as Michele Lerner explains below.

Vacation Homes In High Demand

MICHELE LERNER | Washington Post

October 18, 2015 1:01 AM 

If you’re thinking about buying a vacation home, you aren’t alone.

Vacation home sales across the country are soaring, mainly for two reasons: Declining prices mean deals can be had, and empty nesters are flooding into the market.

Baby boomers looking ahead to their days of leisure are snapping up vacation homes at a faster pace than ever, particularly in beach resorts in the South and the West.

Vacation home sales rose 57.4 percent in 2014 compared with 2013 and reached a record high, according to the National Association of Realtors.

In fact, vacation homes now represent 21 percent of all home sales, the highest share since NAR began tracking the market in 2003. An estimated 1.13 million vacation homes were bought last year, up from 717,000 in 2013.

“There are several factors driving vacation home sales, but one of the main ones is pure demographics, with baby boomers nearing retirement age or already retired who plan to downsize,” says Jessica Lautz, director of surveys and communications for NAR in Washington, D.C.

“One in five of vacation home buyers say they plan to live in the home full time in the future.”

Baby boomers aren’t the only ones getting into the game. Some younger families with investment income or home equity from appreciating home values are opting to buy vacation homes to serve as a place to generate memories with their families, invest for the future and generate income from short-term rentals to offset their own vacation costs.

One-third of vacation home buyers plan to use their property as a family retreat, and 13 percent bought for future price appreciation, according to NAR’s research.

“The rise in the stock market last year contributed to the spike in vacation home sales,” Lautz says. “Thirty percent of all vacation home sales were all-cash purchases, and even among those who financed their homes, 48 percent made a down payment of 30 percent or more.”

Lautz says these cash sales were a little easier to make because of the lower median cost of vacation homes, which fell 11.1?percent from $168,700 in 2013 to $150,000 in 2014 in spite of increased demand. She says 45 percent of vacation homes bought in 2014 were distressed sales, meaning they were a foreclosure or short sale.

“People are also buying relatively small homes, with a median size of 1,500 square feet,” Lautz says. “Some choose to buy condos and townhouses, which are 46 percent of the market, compared to 54 percent of single-family homes.”

Buyers of vacation homes traditionally prefer to buy a place close to their primary residence so they can get there on weekends with ease. But according to research by HomeAway, a vacation rental website, that pattern is changing.

The average vacation home bought in 2013 was 322 miles from a primary residence, compared with 49?miles away in 2003.

Beach resort properties are the most popular, attracting 40 percent of buyers, compared with 19 percent in the country and 17 percent in the mountains, according to NAR’s survey.

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T.O.T. – ALL Vacation Rental Owners Need to Know

335ed1_d276eede1f154ae4ba391f6d2511658bThis week the property owners and management companies who have vacation rental permits in the city of Rancho Mirage were sent an email regarding T.O.T. (transient occupancy tax).  Besides the deadlines for tax submission, the email also reminded owners of the consequences of tax fraud which some owners may not realize they are doing right now.

Long term vacation rentals are generally understood to be rentals of one month or longer.  There may be variances in each city’s definition of the length of these rentals; for some cities it is twenty-eight nights, some thirty and others thirty-one.  You should know that booking a reservation for a one month stay to avoid T.O.T. or to satisfy your HOA (home owners association) rules on length of renter stays, is consider fraud and a felony.  In other words, if you receive an inquiry for a week, three nights, or even one night short of the minimum nights required by your city as a long term rental, and you are audited, you could be charged with fraud.  Depending on the views of your city’s officials on vacation rentals, there could be fines or more serious consequences.

This is widely practiced, but in owner’s defense … it is usually not aimed at saving the tenants the cost of tax, but more to accommodate the owner’s need or desire to only take long term, or monthly rentals.  Most cities do not require a vacation rental permit for properties that solely take long term rentals, but all should know, whether permitted or not … renting your property for one month to tenants staying less than what the city considers a long term stay, could come back to haunt you.

Cities have full rights to the names and contact information on each and every one of your tenants.  If you are audited, as more and more cities are now doing, you could be charged with fraud and a felony.  Likewise, a tenant could be charged with the same if they book your property as a long term with the intent of avoiding T.O.T.

Picture:  http://www.thetamarine.net/#!audits/c1n2c

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How Vacation Rental Owners and Tenants Relate

Bad-Hotel-Sundance-Vacations-300x189 (1)Finding topics for this blog each week can sometimes be challenging.  My goal has always been to inform, educate and sometime entertain vacation property owners and vacation renters.  Of course the content is often commentary and almost always is swayed by my personal experiences and opinions.  I attempt to put my readers into my shoes and hopefully give them a basis to form their own opinions surrounding their individual circumstances.  The fundamentals of owning or renting a vacation home are the same worldwide with the standard expectations of owners providing a clean, well maintained, honestly represented property at a fair price, and who are caring, easy to contact and take responsibility for issues that may arise; and in turn, owners expect well behaved, clean tenants who will also be respectful of their property and considerate of neighbors.  Sounds very simple, but with vacation rentals, and pointedly … vacation rentals managed by owners, you are working in an environment without any set rules or standards.   A hotel has industry and company standards that a paying guest can pretty much count on.  Now, in the sharing economy, you have individual property owners making up their own standards … and rules.  Taking into account how very different an owner may see their property, as I mentioned in last week’s post, where a property was advertised as “totally updated,” when in reality the last updates were made twenty years ago.  Many owners live a distance from their vacation home and rely on cleaning services which may at times be questionable, especially on a property where they know that it will not be inspected.  On the other hand, an owner may find more fault with the unhappy tenants than the cleaners, when cleaning deficiencies are reported.  I am not saying that all vacation homes that you find on VRBO or owner listing sites are bad … in fact the vast majority are excellent … I merely attempt to point out the variation in people, personality and their individual standards … and with the lack of oversight, the fact is …. there are some “bad actors” out there.

Today this blog is filled with commentary and personal opinion … but the commentary is based on facts that I have noted over the past twenty years and in this post, experiences of this past week.  Early in the week we received a call and then a visit, from a couple from England.  Their story was one we have heard countless times.  They arrived at a condo that they had booked through a listing on VRBO.  They were disappointed upon their arrival to find that the condo that was dirty.  After sitting unoccupied for several months, which is typical during our hot summers, the condo was dusty, dirty and full of dead bugs and cobwebs … just in time for Halloween … but they weren’t in the holiday spirt and I can’t say that I would be either.  The entire condo had just one window and that window had a broken blind that they had to climb up on a chair to open.  The bed was so bad that the husband, with a bad back, slept in the living room chair.  The towels were old, stained and frayed.  The one TV was of the old fashioned variety and not only was their lines through the picture, but the screen was so distorted that it cut off the actors heads.  But the biggest problem was that the property was advertised to have a walk-in shower, and what they found was a standard bathtub/shower combination.  This was a huge issue since the husband, with the bad back, is not able to raise his legs high enough to get into a bathtub.  After calls to the owner with no help on cleaning, which they did themselves, towels, which they replaced themselves, broken blind, which they just left open, old bed, broken TV … the very last straw was when they walked into the condo after a trip to the store, to find that the owner had entered without their knowledge or approval, turned the air conditioning up to 78 degrees and left a very nasty note stating that they were not to touch the temperature on the thermostat or he would deduct an additional $200 from their security deposit to cover possible cooling charges.   After finding this note, they called our office.  We were able to find them a perfect condo, the Taj Mahal compared to their current rental, and finally after arriving in the U.S. a week ago, they were able to start enjoying what was left of their one month vacation.  They received no money back from the slum-lord they had rented from, but refused to let it ruin their vacation.

Now I am fully aware that there are two sides to a story … probably more aware than you.  I see this behavior all the time and find ourselves smack-dab between owners and renters and rarely do the two see eye to eye.  However in light of the details shared by our British couple, and the fact that I have met many, many “bad actors,” I tend to give the benefit of the doubt to the tenant.  The bed could possibly be a matter of personal preference, the TV could just have the wrong screen setting … but an owner refusing to clean prior to a tenant arrival, repair a broken blind, replace old towels … and illegally enter a property without twenty-four hour notice … these are unforgivable, and makes me angry as it reflects on the entire vacation rental industry.  If this story is in fact true then it’s my hope that the owner’s bad actions will someday catch up with him … “what goes around comes around,” fingers crossed.  This, in my option is despicable behavior … and I see it constantly!  Other than a bad review, there is very little that a tenant can do.

There are also many challenges for owners.  A tenant may over occupy or abuse a property costing owners in repairs, replacements and in some cases, having to turn away potential or booked tenants to make the repairs.  Tenants may break city noise ordinances and cost owners significant fines or in extreme cases, the loss of their right to rent their property.  Owners who live a distance away face the problem of finding reliable cleaners and maintenance people.  Many will look for a management company such as Vacation Rentals of the Desert, but for some, there will be the overriding desire to avoid professional management fees.  With the growth of the vacation rental industry, we are seeing start-up companies pop out of the woodwork … seems everyone has “the next best money-making idea.”  Yesterday I received a call from a local owner who had signed up with one of these “innovative” new companies.  I won’t name the company, but I’ll tell you enough to recognize them if they call.  This company is located out of state, but offers to represent and manage properties worldwide.  Their management fee is 35% and they find local individuals to check properties and arrange cleaning.  Sounds reasonable on paper … but again there is a lack of oversight, and that is precisely the issues this home owner discussed with me.  He had a handful of rentals over the summer months (surprisingly), but upon his recent visit to the house he found that there was significant damage to the property that had not been noted nor compensated for before tenant deposits were returned.  The air conditioner had not been shut off between a couple of the renters and with temps over 100 degrees, this is a big issue.  In addition, small things like burned out lights and regular maintenance repairs had not been dealt with.  But what really sent this owner over the top, justifiably,  was that his garage door remote was missing, the battery removed from the garage door key pad, the motion detectors outside the garage door disabled, and his golf cart entirely stripped, batteries, wiring, etc. and an expensive set of golf clubs had been taken from a locked closet in the garage.  None of this was found or reported by the local manager or cleaning staff.  The owner found this upon his visit.  The police believe it is an inside job.   So … looks like we are going to be managing a new property.

These are just a couple of examples of what happens all the time … and it goes back to last week’s post on the sharing economy … people are people are people.  You just don’t know who’s on the other end of that phone or email.  As I said at the beginning of this post, sometimes this blog is more commentary …. sometimes I just share my personal experiences …  and sometimes I vent … so here I go.

The above owner with the broken TV, blinds, etc.  … maybe he’s not a slum-lord.  Maybe he honestly thinks that the property is wonderful.  What if the tenant called to complain and was confrontational and disrespectful and the owner took offense and decided not to lift a finger to make his tenant happy?  It’s not right … but it’s very human and happens every day.  This week we called an owner letting her know that the vacuum was broken and we needed to replace it.  She was offended and upset (I know, we scratched our heads about how she could have taken offence), but she finally agreed to replace it.  Side story … she thought she would save money by ordering the $90 vacuum from Target … but in the long run she paid more since we had to charge her to go way out of the way to pick it up (she ordered it for picked up from a store outside our city), then we had to bring it to the office to assemble and finally deliver it to the property.  Had she let us do this we could have bought the same vacuum from Bed, Bath and Beyond, two blocks from our office, used a 20% off coupon and with that 20% savings, paid our office for the assembly and delivery!  Another owner, several years ago, visited her property and discovered that the tenants had burned up her favorite spaghetti pot.  She wanted to cancel her vacation rental listing entirely, despite the $20,000 gross rental that she had generated over the season, and the fact that accidents happen.  She stated that the tenants “did not respect her belongings.”   I immediately went out and purchased a new $25 spaghetti pot, delivered it and the property remained on our rental program for several years.  Sometimes it’s just that one “button,” that one “final straw” that set people off.   Same for tenants … people will vent.  Unfortunately I had to call a future tenant this week and report the sad news that the property they had booked, was going through some “issues.”  Seems that at this particular country club the golf course is not owned by the country club or home owners, but owned by another party.  The golf course was sold, and when the new owner was told by the city that they could not replace the golf course with senior housing, they decided to just close the club house and let the golf course die!  Unbelievable!  Of course the home owners are up in arms.  Their property values have plummeted and most owners purchased within the country club because of the golf course.  Every single property looks out on a fairway … so this affects 100% of the home owners and this high end country club is “not so much” anymore.  So I felt I had better contact our tenants to inform them of the situation since it would have definite effects on their extended vacation.  The fact that it is now in the hands of the legal system, the future of the club is unforeseeable.  With all our properties booked during their dates, my offer of a full refund or significant discount, was countered by ugly accusations and a very, very unhappy client.  Totally expected, but what was I to do in this case?  It is never known how people will act or how people will treat each other on any given occasion.   So back to the couple above, who now have to decide what to do about their vacation … look out onto a dead golf course or move?   The wife insisted that one of the primary reasons she chose this property was to be able to play golf at that particular course and to sit and look out on a beautiful fairway with a gorgeous waterfall (no longer functioning, of course).  Once I calmed her, I told her that she should check with other vacation rental companies … not owner listed properties which would be more time consuming.  Many owner’s do not keep up their property calendars and a renter could spend days waiting for a response only to discover that the property is not available.  I advised she do a google search for local vacation rental companies, and call a reservationist who would have possibly hundreds of potential properties to offer.  This close to season, chances are that most of the properties will already be booked … but they may still have a few.  This would be her quickest and safest way to go.

Vacation Rentals of the Desert is a pretty old fashion kind of company.  Certainly we have all the new bells and whistles … state of the art website and software, massive advertising budget, including VRBO and FlipKey, (can’t do Airbnb … one day I’ll explain the various reasons why this is a bad idea), fully trained and professional staff, checks, balances and standards of practice.  These are essential to running a successful vacation rental company … but the one thing that makes us stand out is the way we handle business … clients, tenants, owners and their properties.  This is where “old fashion” comes in, and we live by these rules every day …

                The customer is number one

                Do unto others as you would have them do unto you

                Treat everyone with respect

                Treat properties as if they were our own home

                Listen and give everyone the benefit of the doubt before making a decision

                It’s not always about the bottom line

                Honesty in all cases

For some owners and some companies … it is only about the bottom line.  We’re very fortunate … our properties are not investment properties …  they are second homes.  So if we feel the tenant would be a bad fit, we look for someone more fitting.  If we have a past history with a “questionable” tenant, we pass.  This is why we do not handle Coachella and Stagecoach Fests rentals.  Granted … the vast majority of fest goers will cause no problem, but about 10% will be a problem in one form or another … and we cannot gamble with our owner’s properties or our reputation.  Here’s a good example:  Last year we had a group of friends staying at a property during Coachella.  They informed us that they were in their 50s and had no intention of attending the fest.  The second night of the fest the tenants were on their back patio at 2 a.m. talking and the neighbors called the police.  Next day we received a $500 fine with a picture of the Coachella Fest bus in front of the house loading up our renters earlier in the day.  The age and profession does not matter … after partying all day, reason quickly flies out the window.  Now this property owner stands to suffer stiffer fines in the future and possibly lose his vacation rental permit because of tenant behavior … and it may not even be the tenant we screend.  It could be an unruly friend that gets out of hand or someone that they met at the fest who had no place to stay.  Bottom line is that even if the security deposit is raised to cover possible ordinance fines, my owner is one citation closer to losing the ability to accept vacation rentals.  Ultimately was the money worth the citation not to mention the extra oversight of future tenants?  Next fine is $1,000 … you better believe I’m hovering … and is this fair to our “good renters?”  I’ve been told by another management company owner that you just have to know how to screen properly!  How do you screen people today, for their behavior after partying a full day or two in the future?  There is no way.  I hate like heck to lose the rental money during these fests, but as I mentioned … the properties that we handle are second homes and my owner clients are wary of damage, fines and possible animosity from their neighbors making their own visits uncomfortable.  Sometimes the juice is just not worth the squeeze.

On my drive home from the office last night I was listening to a discussion on NPR Radio.  They were talking about Volkswagen and how they’ve lost the public’s trust.  One of the fellows in the discussion was from a large advertising firm and when asked his opinion on regaining public trust he said he thought the company was “screwed.”  He suggested an ad campaign showing the VW board members being fired and a big explosion.  Pretty drastic … but this is how important trust is to a company.  A trusted reputation is a necessity for survival in the business world … now look at how much it’s going to cost Volkswagen, and all the money they spend may not change the public’s mind.  Further in the conversation they talked about the Volkswagen Bug’s initial ad campaign … back in the 60s, I believe.  Back in those days all the cars were big, long boats.  In those days of cheap gas, bigger was better and these big cars represented success and prestige.  Then here comes the little VW Bug.  The advertising campaign was simple, but brilliant … and it worked!  In magazines they ran a blank white page and in the very bottom corner was a photo of a VW Bug with the caption, Think Small.

Simple but brilliant.  Reflecting on how our company of 130 properties competes in the big sea of VRBO, Airbnb, and large impersonal cookie cutter vacation rental companies … if we were a big national company … I think our ad might look like this:  A blank white page with our Vacation Rentals of the Desert logo in the bottom corner.  The caption would simply say … A small company, striving to be the Very Best.

Photo:  https://sundancevacationsblog.com

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Vacation Rentals and the Sharing Economy

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After taking a reservation from a wonderful gal that we’ve become acquainted with over the past few years, I received the below email, which inspired this article.  Our staff met her as an owner’s guest during a couple of her visits to one of the properties we manage.  She called yesterday looking for a property to rent for her family next month during the Thanksgiving holiday and luckily we found her a spectacular property that met all her needs.

I have to tell you:  before I called Vacation Rentals of the Desert, I looked on line at VRBO … and I just felt uneasy about accepting at face value what the owner was saying.  I also realized that I was checking out properties a little late in the game.   

That said — I have friends who have rented through VRBO and have had tremendous success. 

I think the fact that I had spoken in the past to your company (from a friend’s unit that you manage, regarding a maintenance issue and also in regards to a neighbor having fallen in the unit next door and reporting that to 911 and to your agency) made me feel very comfortable in trusting your company’s sense of what might be the right thing for me to rent this fall!

Many, many thanks to you and Kathy!  As recommended in your email, I’ll be in touch closer to arrival regarding keys, etc.

 

Of course I responded to this email with our thanks and further explained to her that I too had been in her position last year and had similar feelings about dealing with owners I did not know.  I wrote about this in a blog titled “Girlfriend Retreat,” dated June 8, 2014.  Today I’ll share some of my mixed feelings on what is now being called the “sharing economy.”

Watching HGTV, which my followers know is one of my biggest addictions, I love the shows that demonstrate how it is affordable to own a second home if you take in a certain amount of vacation renters.  These are great shows and do a lot to build the industry but my only caution to those who have interest in buying with an absolute need to rent the property … “due diligence” is a must.  These shows do not take into account things such as year round utility costs including Wi-Fi and TV cable, property maintenance such as pool service, gardening and home repairs or upkeep of supplies and cleaning.  Nor do they include the costs of advertising, HOA fees, commercial liability insurance, warranty programs or an emergency fund in the event of a major issue such as a broken hot water heater or HVAC that interrupts rentals for a period of time.

If I owned a vacation rental, which I don’t, I can say for certain that I would handle the property myself, doll it up and pamper my guests.  It can be fun if you do it correctly … but it’s what I do every day.  I know the rules and regulations; I know the cleaning requirements and know what makes tenants happy and how to avoid upsets.  BUT I would manage it myself only if I lived close to the vacation rental … otherwise I would definitely look for assistance from a professional vacation rental management company.  Trusting a cleaning service, friends or family, is just too big of a risk and a responsibility that I would not put on someone I cared about.  Vacation rentals can be fun … but they are also very demanding and dealing with rental clients, neighbors and city ordinance regulations these days, can have you jumping through hoops day and night.

Returning to our client’s email above and her hesitancy to work with someone she did not know … I will share with you some of my experiences with property owners.  This year alone I turned down about five properties.  Owners inviting me to their vacation homes, wishing to list with Vacation Rentals of the Desert, but having substandard properties.  I really, really hate turning down a property and always try my best to convince these owners to take the necessary steps to bring their properties up to speed.  Sometimes it works, but more often than not … I get excuses why the property is fine how it is.  Here’s just a few …

I walk into a property with carpet at least thirty years old; stained and worn.  Foil wall paper on the walls and in the bathrooms, it’s even on the ceilings.  The living room sofa is 1970s plaid with Early American furniture.  Anyone old enough to remember spindly-leg Early American furniture?  The flowered bedspread in the master matches the flowered curtains that are faded from the sun.  I could go on, but I won’t … I’m sure you get it.  This property was too far gone and I had to explain to a really nice lady that our customers are looking for a more updated property.  She offered to purchase throw rugs to cover the carpet stains, but insisted the living room furniture was fine and she loved the flowered bedspread and claimed that it had been very expensive … yes, thirty years ago!   She told me that all of her friends and family who had stayed there, loved it.  Of course they would …. who would want to upset this really sweet lady.  Ultimately I had to walk away from this property wishing the owner, sincerely, the best of luck.

Another property that I viewed; the owner lived full time at the property but would move in with a friend when it is rented.  He would need to lock one of the three bedrooms and the garage, for his personal possessions and insisted on doing all of the cleaning, before and after guests.  The place is very dirty but he insisted that he was an excellent cleaner.  I explained that maybe the locked garage would be okay but not the locked bedroom.  Tenants are spooked by a locked room … closet okay, room no.  Also I told him that we needed to use our cleaners due to sanitation requirements and guarantees.  When he would not agree to these requirements, we parted ways with a handshake.

On another occasion I received a call from an owner describing her property as totally updated and she was certain we could ask for top dollar.  Upon walking up to the property, I could see that the bedroom window coverings were mini-blinds … some bent … oh no!  But she’s was absolutely correct … it was completely updated … in the 80s!  Mauve carpet, mini-blinds, 1980’s pastel southwest furniture, 1980s appliances.  She explained that she has been renting it herself but was tired of getting complaints from tenants all the time.  I looked at her website listing and she had described her property as “completely updated throughout.”  It’s not a wonder that her tenants were unhappy.  It was clearly misrepresented.  I passed.

The dated property scenario happens over and over again, almost as much as the “completely updated” story.  Many owners do not realize how competitive the vacation rental market has become.  For every dated property, there are ten updated properties with all the new bells and whistles.  When vacation rental owners say that their friends and relatives love the property, and they all say this … I think, but can’t point out the obvious … how many friends tell you that your butt looks big in that dress or you walk funny? They don’t want to cause hurt feelings, or risk not being invited back.  People are very tolerant of shortcomings when they’re staying free or at the cost of a cleaning.

There is also the “eye of the beholder” to take into consideration.  I wrote about this in an earlier blog post titled “Hopelessly Stuck in the 80s!,” posted January 12, 2014.  Many owners who purchased and decorated their vacation homes years ago, view the property through very different eyes than you and I.  Their homes are filled with memories and they do not see any of the shortcomings, only the property that they love.

There was a time, when tenants were happy to find any home available for their vacation, but that was some years ago.  Now, with the vacation rental boom and the variety of properties readily available, an updated, well maintained property is extremely important.  As recently as a couple of years ago, I would take on dated properties, pricing them accordingly, with the thought that there is a price point for every tenant.  I have found since then that dated properties are a lose/lose situation.  Despite informing tenants before they book, that the rental rate is low because it is a bit of an “ugly duckling,” dated but well maintained and squeaky clean … we will still get complaints.  Often it doesn’t matter how much you clean … “old” just looks dirty.    On the other hand, the property owners will inevitably know a neighbor who is making more money on their property of the same size and not taking into consideration the dated condition of their property, ask us why they are listed at a lower rate.  So I no longer take dated properties.  Sometimes the juice is just not worth the squeeze!

If you are a vacation rental owner, and I have said this many, many times … drag a stranger, your friend’s acquaintance, a property manager, over to your vacation property and ask for an “honest assessment.”  DO NOT ask a friend.  DO NOT ask a relative.  A friend or relative will NOT give you an honest answer.  They will not risk hurting your feelings.  If your furniture, beds or décor are twenty years old … your prospective tenants will see this and your vacation rental business will suffer.  If they do rent … you will get complaints and the tenant reviews on your website will be bad and discourage future business.

There are very, very few properties that can pull off a dated look.  The properties that can are mid-century modern and maybe some vintage, antique filled Victorians.  1970s, 1980s and 1990’s era furniture are not desirable at all.  If you are doing mid-century modern you should be careful about how much original furnishings you are adding to the home.  A few vintage pieces here and there, some art, lamps, etc. are usually okay … but not the entire house.  I have seen it … it never works.  It looks old and shabby.  You will want your beds and living room furniture to be new.  Remember that the vintage pieces you buy are over fifty years old and may break.  One of the properties we manage has a very expensive Eames chair.  I have grown to hate this beautiful chair.  Twice it has broken.  Once with a tenant sitting in it.  The breaks were not due to misuse, it came from fifty to sixty years of butts in and butts out.  Excessive wear and tear.  A reproduction would have been equally attractive, less expensive and safer.

A clean property is THE number one priority.  It doesn’t matter how much you’ve spent on dolling your property up … if it’s dirty … that’s all the tenants will see.  One dead bug laying in the entry of an otherwise spotless home, can upset tenants to the point that they think the home is insect infested and want a full refund.  You must make sure that the home was been well cleaned and sanitized, and that someone checks the property just prior to your tenant’s arrival.  You will also want to make sure that you immediately address any cleaning issues that a tenant may report … I stress immediately!  Likewise for maintenance issues and repairs.  If your property is listed on a website than your tenants have “The Power of the Review,” another recent blog post for you to read, dated August 30. 2015.  With the review, tenants have the power to make or break your vacation rental’s success.

I have done many inspections after an owner has said that they would have the property cleaned for an upcoming vacation rental, only to find that the toilets were dirty and the sheets needed to be washed … hair on the pillows and the corners of the sheets popped off the mattress, don’t lie.  I have a computer file filled with these photos where I’ve documented the issues and then had to rush our cleaners in to do a proper job before the tenants arrived.

If you are a prospective renter and have read this far … you probably get the message.  Most people who list on VRBO are wonderful owners, I won’t get into Airbnb, but there are the few vacation rental owners who are only concerned about their bottom line.  I understand the appeal of the “sharing economy,” and applaud all the conscientious vacation rental owners, but seeing what happens from our view inside the professional industry … I’m waiting for the “other shoe to drop.”  I would not advertise that I make the best lasagna in town, which I do, and open my front door to paying clients nor would I cross into Mexico to get a less expensive facelift.  There are some situations where the risks are too high … I’m not a lucky gambler.  I often wonder how there can be so many people who are willing to risk their vacation money … but again, I’m not a gambler.  I’m very happy to pay a little more through a vacation management company for my peace of mind, knowing that I will have certain guarantees and that the company has a valuable reputation to protect as well as a full team of professionals with one main objective … to make me happy.

Photo:  http://whitehousecleaning4u.com/

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