Category Archives: Vacation rental

TripAdvisor Projects Big Year for Vacation Rentals in 2011

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"The Good Life"

"The Good Life"

Survey Shows Increased Interest in Vacation Rentals, With 40 Percent of Travelers Planning a Rental Stay in 2011

TripAdvisor®, the world’s largest travel site, recently announced the results of its second annual vacation rentals survey of more than 1,400 U.S. travelers.

Thirty-three percent of travelers said they stayed in a vacation rental in 2010, and forty percent of respondents said they are planning a vacation rental stay in 2011, indicating that rental homes are poised for a busy 2011.

From Hank Hudepohl, director of vacation rentals at TripAdvisor:  “With an increased interest in vacation rentals on TripAdvisor and a similar trend shown in our survey, it’s shaping up to be another strong year of growth for rentals.  For travelers staying with larger groups in 2011, a vacation rental is a great option to consider for its home-like amenities and affordable pricing compared to hotels.”

Here are some of the results from the survey:

Summer is the busiest vacation rental season…
Summer projects to be the most popular season for vacation rental stays in 2011, with 52 percent of U.S. travelers planning a rental home stay during the warmer months. In addition, 47 percent of respondents are planning to stay in beachfront villas, making them the most popular vacation rental type for 2011. The most popular U.S. region for rental stays in 2011 is the Southeast (31 percent) according to the survey. This was followed by the Southwest and the Northwest, which came in second and third, respectively.

Best part of a vacation rental…
When asked what travelers liked the most about vacation rentals as a lodging option:

  • 28 percent cited more space
  • 23 percent of travelers enjoyed having access to a full kitchen
  • 13 percent liked that rentals were often less expensive than hotels

In addition, 41 percent of respondents said vacation rentals were the best option for a trip when staying in a destination for a week or more, while 33 percent thought they were the best option when staying with a large group.

Booking early pays off…
Twenty-nine percent of travelers either always or often stay in the same rental year after year. Of the travelers who stayed in a vacation rental in the past:

  • 22 percent booked their rental home more than six months prior to the trip
  • 34 percent of travelers booked their rentals between three and six months out
  • 22 percent booked between one and three months out
  • 2 percent of travelers booked their vacation rental less than one month out

Vacation Rental vs. Hotel…
Eighty-seven percent of respondents said they would choose to stay in a vacation rental over a hotel if it were significantly less expensive. In addition, 80 percent of travelers would book a last minute vacation rental stay if they found a great deal.

Luxury vacation rental features…
If travelers had their pick of luxury vacation rental features:

  • 51 percent would choose a rental home with a private beach
  • 12 percent would choose a rental home with maid service
  • 9 percent would choose a rental home with a hot tub
  • 8 percent would choose a rental home with a personal chef

Vacation Rentals and life events…
According to the survey, 36 percent of travelers who have rented in the past have stayed in a vacation rental for a milestone life event, such as a wedding, birthday or reunion.

Know Before You Go…
When deciding between different rental properties, the key influences cited by respondents are:

  • Photos of the home (42 percent)
  • Traveler reviews (27 percent)
  • Cost of staying at the properties (13 percent)

Power of the internet and friends’ advice…
Most travelers find out about vacation rental properties on the Web, both on vacation rental property websites (70 percent) and online travel websites (55 percent). In addition, 25 percent of respondents find out about particular homes by word of mouth from friends and family.

The Outer Banks is the perfect beach vacation…a great combination of peaceful relaxation and fun local activities/attractions; gorgeous beaches, a wide variety of water sports, world-class fishing and surfing, great local art and shopping, delicious local food, history, nature, etc.

The OBX offers great vacation rental homes for all types of travelers; small beach bungalows to large beach front estates.

Please let us know if we can help you plan your next trip to the Outer Banks: www.OuterBanksVacations.com.

Travel Trends Look Positive for 2011…Especially Vacation Rentals

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Seaside Vacations - Sandy Oasis

Seaside Vacations - Sandy Oasis

Ypartnership is a global marketing communications agency specializing in the travel, leisure, and entertainment industries. Headquartered in Orlando, Florida, the agency is one of the most frequently quoted sources on emerging trends in travel and tourism.

Ypartnership chairman and CEO Peter Yesawich recently issued their detailed forecast for the travel industry in 2011, and they see good things for travel as a whole, and great things for vacation rentals specifically.

I won’t include all of the details of the report (you can find more here), but I’ll share a few highlights:

A. As of October of this year, fully 55 percent of all U.S. adults were planning at least one overnight trip primarily for leisure purposes during the first two calendar quarters of 2011, up slightly from the 53 percent who expressed this sentiment at the same point in time in 2009.

B. Although travel with one’s spouse or another adult will continue to represent the highest incidence of leisure travel (eight out of ten leisure travelers will take at least one such trip in the year ahead), family travel (adults who travel with children) will continue to grow because of the burgeoning popularity of multi-generational leisure travel: one third of all leisure travelers are now grandparents, and three out of ten took at least one vacation with their grandchildren last year. This incidence will continue to grow as the population continues to age.

C. Interest in condominium and vacation home rentals will demonstrate robust growth (almost half of all leisure travelers are now interested in a vacation home rental as an alternative to conventional lodging when on vacation), particularly among family travelers seeking more space and better value.

The travel industry plays a major role in the overall economy; it’s great to see positive forecasts for the upcoming year.

For an area that depends heavily on tourism, and has a preponderance of vacation rental homes, this is great news for the Outer Banks and the OBX real estate market.

Arthur Frommer Predicts Surge in Vacation Rentals in 2011

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Seaside Vacations - Sandy Oasis

Seaside Vacations - Sandy Oasis

In his most recent blog post on Frommers.com, Arthur Frommer gives some predictions for the 2011 year in travel, and a surge in vacation rentals is what he sees.

Arthur Frommer published his first travel book in 1957!  Since his first publication, the Frommer’s collection of travel products has grown to over 300 guidebooks, and a popular travel website, www.Frommers.com.

Based on 50+ years of travel guidance, Frommer is a very good analyst of the travel industry.

Coming in at #1, here’s what Frommer had to say about vacation rentals:

1) A Greatly Increased Use of Apartments and Vacation Homes in Place of Standard Hotels

It’s the most pronounced trend in travel…because of the skyrocketing popularity of such alternative accommodations. Large segments of the traveling public are today convinced (and they’re right, in my view) that apartment/home rentals cost much less than hotels and improve the quality of the stay.

A Great Time to Buy a Vacation Rental Home?

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No two ways about it; it’s a tough economy.  And real estate is moving headlong into the financial headwinds.  But there are bright spots to be had, and vacation rental homes twinkle with potential.

Overall, it’s a decent time to look into real estate investments; prices are low, financing is cheap, and inventories are growing by the day.  In essence, the definition of a buyer’s market.  Plus, real estate is a tangible asset.  If/when stocks sink your invested funds may disappear, but a house will be there tomorrow…perhaps worth a bit less, but it will be standing.

RealtyTimes.com recently ran an article highlighting the benefits of vacation rental investments in today’s frenzied real estate market.

  1. Prices are low: Property prices are as low as they’ve been in ten years. Procrastination won’t keep them low.
  2. Interest rates are as low as they are likely to go: Erate.com had the interest rate for 30-year, conforming fixed rate mortgages at 4.23 percent on Oct. 25 and says rates on non-owner occupied properties is about a half a percentage point higher — with a virtually mandated 20 to 30 percent down payment.
  3. Markets are flush with inventory: The slow economy and even slower housing market has left vacation markets brimming with buying opportunities, from sellers looking to move on or up, to foreclosures that warrant careful scrutiny.
  4. Good help is easy to find: The recession weeded out incompetent, fly-by-night real estate people who jumped on the booming market bandwagon. Those who survived have been around the block a few times and know the game.
  5. Renting a vacation property is easier than ever: Vacation rentals are more popular than ever, thanks to their home-away-from-home allure but also because the Internet has made them eminently more visible.
  6. Buy now, beat the 2011 peak season rush: The longer you wait to buy, the more likely mortgage rates and prices will rise and the good properties will be snatched up.

If you’re interested in real estate along the Outer Banks, we’d love to help you:  www.ColdwellBankerOBX.com

2010 Brings Strong Tourism to the Outer Banks

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Hurricane Earl may have chased some tourists away from the Outer Banks last week, but as a whole, this has been a very strong year for OBX tourism. 

The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks.  Occupancy tax collection from vacation rentals rose 15% in July.

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set  in July 2007, but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.   

For the January through July period, that revenue is up 5%.  On a month to month basis, January receipts were up, February was up, March was down, April was down, May was down, and June and July were up.  Though August figures are not yet available, indications are that they increased as well.

Outer Banks Occupancy Revenues Hit All Time High in July

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The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks. 

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set in July 2007 , but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.

Outer Banks Tourism Improving

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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.

Sale of Vacation Homes on the Rise

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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.

Great Time to Consider an Outer Banks Vacation Home

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"True Friends"

"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 Outer Banks is a Great Second Home Market

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"The Good Life"

"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.