Category — vacation rental

According to a recent article in The Daily Advance, the general consensus on the Outer Banks seems to be that bookings are up from this time last year for vacation rental homes. 

There has been a strong influx of spring vacationers to the OBX, and summer reservations continue to rise.  Last year, visitors were requesting shorter stays that usual, but in 2010 the length of stays are increasing.  Guests are planning ahead and booking further in advance to ensure that their favorite vacation home is reserved and their family can rest at ease and countdown to their Outer Banks vacation. 

We have great vacation rental homes available, and we would love to help you plan your trip to the OBX.

The sale of vacation homes rose 7.9 percent to 553,000 from 513,000 in 2008.  The market share for vacation rental homes is 10%, which is a percent higher than last year. 

The typical vacation home buyer is making a lifestyle choice,” said National Association of Realtors Chief Economist Lawrence Yun in a statement.  He added that “nine out of 10 buyers say they intend to use the property for vacations or as a family retreat.” 

According to the National Association of Realtors, the number of first time home buyers was at a record high.  The median transaction for a vacation home was $169,000 in 2009, up almost $20 thousand over 2008. 

It is also reported that half of the vacation homes purchased were in the south, 21 percent in the west, 17 percent in the midwest and 12 percent in the northeast. 

On the Outer Banks is seeing increased activity for these types of sales as well.  With the tax credits that are in place, mortgage rates at an all time low, and high affordability, owning a vacation home on the Outer Banks is more feasible than ever.

"True Friends"

With low prices and affordable mortgage rates, there is no question that the current economic conditions have helped to create a tremendous opportunity for real estate investors.  This is especially true on the Outer Banks. 

With low prices and great selection, there has never been a better time to buy that second vacation home.  Investing in a second vacation home could eventually allow you to be able to pay for the home and use it as your permanent residence when you retire. 

“Buying and renting out a second home as a vacation rental property until you’re ready to move in upon retirement can significantly help offset the cost of ownership,” says Brian Sharples, CEO of HomeAway, the world’s leading online vacation rental marketplace. “The income stream, in addition to tax write-offs for maintenance and repairs, make this an attractive strategy for many people nearing retirement.”

According to HomeAway, on average $28,000 of rental income is pulled in from owning a second investment property.  With the  popularity of vacation homes increasing, it is hard to overlook this opportunity.  It is reported that about 87 percent of all travelers that have stayed in a vacation home in the past will stay in one again this year.

HomeAway suggested taking the following steps in preparation for investing in your second vacation home. 

• Consider the location and market potential – Carefully review the markets where you want to retire, and before you buy, consider the areas where consumer demand for vacation rentals is high, but inventory is low.
• Factor in tax write-offs – Talk to an accountant about the tax advantages of owning and renting out a second home. Expenses such as insurance, utilities, home maintenance and depreciation can be deducted, depending on how often you rent out the property and how many weeks you personally stay there each year.
• Advertise to attract renters – When you’re ready to rent out the property, be sure to market the availability of the vacation rental to travelers by listing it on sites like HomeAway.com or VRBO.com, which reach millions of travelers each month. A 12-month listing costs $329 – or less than $28 per month – on HomeAway.com, so the advertising pays for itself with your first booking – and the rest is pure rental income.
• Stay competitive and network with owners – Check out other similar vacation rentals in the area to determine what rates they’re charging travelers, and price your home at a competitive rate to help drive bookings. Also, be sure to talk with other owners to get their tips and advice for maximizing a second home investment.

For more information about owning a second vacation rental home, visit www.coldwellbankerobx.com or email sales@seasiderealty.com

"The Good Life"

The Outer Banks of North Carolina has become the prime east coast destination for vacationers to escape to the beach and relax. The OBX offers unique local appeal with historic relevence like the legends of Blackbeard the Pirate to the birth of aviation.  The east coast is covered with resort towns that have become heavily populated, and most beach towns on the east coast are covered with shopping, high rise developements, parks and  huge condo units.  The Outer Banks has preserved its quaint charm throughout the years, and its unique feel attracts hundreds of thousands of visitors each year. 

Starting at the Virginia Border, the Outer Banks spans three counties and runs south along the North Carolina coast for about 130 miles.  One reason for underdevelopment on the OBX is the thinness of the islands.  Most homes are either oceanfront or within short walking distance to the ocean.  Towns such as Duck and Corolla have become very popular for second home owners because these are popular rental markets.

In a recent USA Today article the Outer Banks was classified into three different areas.  They are as follows:

• Northern beaches: This area includes the towns of Duck, Corolla, Southern Shores, Kitty Hawk, Nags Head and Kill Devil Hills. “Favorites include Duck and Corolla, and it’s mostly single-family homes, though at the low end you can get a one-bedroom waterfront condo for under $200,000. Most homes are in the $400,000-$800,000 range, though Corolla is known for larger oceanfront homes up to $5 million,” a local Outer Banks realtor notes. North of Corolla, where Highway 12 ends, nearly 15 miles of dunes stretch to the Virginia border, dotted with vacation homes accessible only by four-wheel-drive vehicles: “That’s a whole different buyer seeking remote privacy.”

• Southern beaches: Hatteras Island is even less developed than the Northern beaches, and it is well-known for its excellent fishing, windsurfing, kiteboarding, and surfing. It is also at least another 30 minutes farther from the mainland bridges and includes more protected lands. Avon, Hatteras Village and Rodanthe, where the Richard Gere romance Nights in Rodanthe was set, are the most popular towns, and prices are lower than farther north. “Low-end one-bedroom condos start around $100,000, and the high end would be a seven-bedroom oceanfront home for about $2.5 million,” a local Outer Banks realtor notes.

• Mainland: The main bridge from the Outer Banks connects to a peninsula jutting into Albemarle Sound, including the town of Powell’s Point 4 miles from the bridge. “We consider it part of the Outer Banks even though it’s on the mainland,” notes a local Outer Banks realtor, who mentions that the Kilmarlic Club is popular with second-home owners. A master planned golf community with amenities like tennis and health club “started less than 10 years ago. All are single-family homes, from the mid-$300,000s to the $600,000s.”

Continually increasing in popularity, there is enormous opportunity in these rental markets.  If you are interested in owning a second home on the Outer Banks, contact sales@seasiderealty.com or visit www.coldwellbankerobx.com.

As I approach my 25^th year in Vacation Rental Management I reflect back over all the many changes that have taken place in the travel industry and the many specific ways vacation rentals have changed. I am also stuck, however, by all of the many things that have stayed the same. Unlike other sectors of the hospitality industry where is only two sides to the equation- management and guests, the vacation rentals sector has three- the owner, the owner’s manager and the guest. This is where some fundamental problems can occur. And, it is really a question of mindset.

How do you view your rental guests? It is amazing how many owners take their rental guests for granted. Most guests, who come to the Outer Banks year after year, would love to find a home that works for them and just keep coming back to that same house. However, it’s amazing how many owners fail to appreciate this loyalty and the monetary benefits of having a regular repeat following. By jacking up rental rates; failing to fix and replace items as needed; not providing the basics in your kitchen; not providing basic services like Wi-Fi; by not upgrading décor and electronics, owners send a signal that they just don’t care about the vacation experience of their guests. Guests, by and large, respond by taking their business elsewhere. Remember, that the things you may be willing to live with when you stay in your own vacation home, are unacceptable to most guests. They are paying good money and have the right to expect a good value and for things to be in good working order. You may not hear a complaint, but they will speak load and clear by not returning to your home. Remember, your home may be one of a kind, but it is not irreplaceable as a place to vacation. Make sure you are showing your gratitude by making your guest’s vacation as comfortable, fun and relaxing as possible. They will reward you with their loyalty.                               

Another mindset to explore is how you see your property manager. Do you see your property manager as your agent, partnering with you to care for your home and serve your guests?  Or, do you see your property manager as a separate outside entity with an agenda different than yours? If so, it may be time to sit down and have a heart to heart and make sure you and your property manager are on the same page. When an owner and his or her manager have the same mindset regarding guest service and property upkeep, it is a beautiful thing. Conversely, when mindsets are at odds, it can be extremely frustrating for both sides. There are many firms on the Outer Banks and they vary in their approaches- make sure you and your management team are a good fit.

This past season has shown us that the Outer Banks has extreme resiliency to economic downturn. While we got off to a slow start, the demand and desire for the Outer Banks remains high. Pre-reservations for 2010 are strong and the economic outlook continues to improve. However, the rental home inventory on the Outer Banks is aging and it is important that we all take the needed steps to work together to provide the vacationing public with clean, well keep homes and work hard to show them our passion for hospitality and our appreciation for their business.