Vacation rentals may seem like a hot “new” craze but it’s actually a global industry that’s been around for 100 years across America and Europe. And it’s growing.
In the midst of a market facing financial and employment instability, a second revenue stream can be the saving grace of many everyday consumers. Opening the doors to your second home can also open up new opportunities and options for successful financial planning, including an average annual income of $28,000 in rental revenue.
Vacation home rentals are increasingly being booked by families and groups as they look for accommodations offering more space and amenities beyond a traditional hotel room, coupled with the privacy of a home.
The Internet has played a huge factor in the increasing awareness and popularity of vacation rentals. Online marketplaces began by making it easier for owners to list their properties and for consumers to find rentals, but the pivotal moment of change came with the debut of companies like HomeAway – the world’s leading online vacation rental marketplace – that features one million vacation rental listings in 190 countries, representing nearly 99% of the world.
“HomeAway has truly transformed the industry and my rental business,” says Joel Rasmussen, multiple vacation rental owner and author of “Vacation Rental Success: From Zero to Profit.” “It has enabled me to convert my long-term rental properties into vacation rentals, earning what used to be an entire month’s rent by booking a family or group of travelers for just one week.”
In 2013, property managers and owners who list on HomeAway’s sites collectively generated approximately $11 billion in rental revenue on more than 50 million nights booked – a surprising number considering travel research firm, PhoCusWright says only 14 percent of U.S. travelers booked a private home, condo or apartment rental for at least one of their trips in 2013. However, that number is up from 8 percent in 2010.
Beyond the reward of additional income, home listing offers added benefits for owners.
- Renting Your Way to Retirement: The median age of a vacation home buyer in 2013 was only 43 years old, according to the National Association of Realtors, and the smarter buyers are discovering that you can buy your retirement home early and pay off the cost by renting to travelers – while also using the home personally as a vacation home.
- Paying Down the Cost of Your Second Home: When you are not using the home and it is sitting dormant, renting to travelers is an excellent way to put a dent in the home’s mortgage. 54 percent of HomeAway vacation rental owners are able to cover 75 percent or more of their mortgage with rental revenue.
- Diversifying Your Investment Portfolio: Not only does a vacation rental provide a steady stream of income throughout the year, but it also serves as a piggy bank – much like an IRA, you can’t spend the full value of your home.
- Making the Best of The Influx of Tourists to Your Town: Noticing an influx of travelers to your area especially for festivals or large sporting events? Take advantage of the over-booked hotels by offering up your second home for accommodations. Renting during events can also garner a high premium rental rate – or event lead to an investment in a full-time vacation rental.
In addition to the financial incentives, vacation home owners have the opportunity to create a home away from home in their favorite destination. But if you don’t have a place in mind, here’s a look at the locales that have been most popular among vacationers so far this year:
Destinations with the Largest Traveler Demand, YTD 2014
- South Beach, Miami, Fla.
- Las Vegas, Nev.
- Fort Lauderdale, Fla.
- Key West, Fla.
- Orlando, Fla.
- Gulf Shores, Ala.
- Fort Myers Beach, Fla.
- Austin, Texas
- South Padre Island, Texas
- Kissimmee, Fla.
Join the thousands of property owners who are enjoying the benefits of the vacation home rental industry and make your second home your first resource for comfortable living.
Get started now at HomeAway.com.
Million Ways to Stay Sweepstakes
Still not sold on the value of vacation rentals? Get your feet wet by staying in rental on your next vacation and experience first hand the hottest trend in travel – HomeAway is offering the opportunity to win $10,000 towards a stay in a vacation rental of your own with it’s Million Ways to Stay” sweepstakes.
To enter to win the $10,000 rental stay in the “Million Ways to Stay” sweepstakes, contestants can visit HomeAway’s Facebook page. After liking the HomeAway page, consumers enter the sweepstakes by searching for their dream vacation rental on HomeAway.com submitting the URL, along with where they would want to vacation and contact information through the Facebook entry form. Consumers receive up to three additional entries by referring friends to the contest. The entry period runs today through July 16, 2014 at 11:59 p.m. CT. The winner will be randomly selected and notified no later than July 31, 2014. Official contest rules are available at: http://www.homeaway.com/info/homeaway/traveler.marketing/million-ways-to-stay-sweepstakes.html.
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