Going on vacation is good for you. Some research suggests that your risk of a heart attack can decrease by half simply by taking a vacation. For home owners renting out their vacation homes, however, the process can be less than idyllic, which is why choosing a property management company that offers a complete service is vital. As demand for vacation rentals grows — and it is growing with 50% of Americans having stayed in a vacation rental last year compared to just 10% who had done the same in 2007 — the need to understand the ins and outs and pros and cons of vacation rentals as a property owner will also increase.
The first step is understanding your market and where potential rentals will come from. Leisure travellers are 47.5 years old on average, but mature travellers over 55 represent the largest travel volume at 36%, equally split between the 55 to 64 age group and the over 65s. Young adults (18 to 24) are the smallest group in terms of travel volume, representing just 8%, followed by 35 to 44 year olds at 17%, and those in the 45 to 54 and 25 to 34 age groups (19% and 20% respectively). More than 80% of wealthy leisure vacationers indicated that vacations are vital to their health and wellbeing. Interestingly just one quarter of those surveyed in a Harris Interactive poll of over 2,000 people took all their paid vacation leave in a year.
Demand for vacation home rentals is seasonal, with the most demand experienced in the summer. In a 2015 survey, June, July and August were equally popular in terms of demand for rental properties with 21% of those surveyed choosing those months. This was followed by September (18%) and October (17%).
Once you have determined that there is a demand for property in your area during periods when you will not be using the home, and you have a picture of the type of traveler who may be interested in renting, you can look for a full-service property management company that can handle the whole process for you. Vacation property management services companies typically charge between 20 and 50% of the rental income for their services.
