6 Replies Latest reply: Apr 22, 2019 5:38 PM by psphoto RSS

    Rent at any Cost?

    psphoto Active Contributor

      I was checking pricing of properties in my area to see what range the largest vacation rental management in the country offered ( Vacasa ) and to say the least...I was surprised.

      One oceanfront home had a range of lowest to highest  rate of $114 to $1599 per night......another from $123-$1394 per night!

      That's a pretty incredible range of pricing....and makes me wonder if the owners have actually given much thought to wear and tear, not to mention other operating expenses.

      Of course, for Vacasa, they make $$ on every booking without incurring any of the actual ownership costs.

      Unfortunately we are seeing a trend in my area of lower nightly fees, especially off season, and I can't help but wonder if dynamic pricing without a reasonable "price floor" is driving this.

      There's a price level I'm just not willing to go below, both in terms of profitability, but also because of quality of guest.

      Just sayin'!

      Pete

        • Re: Rent at any Cost?
          susaninrehoboth Premier Contributor

          psphoto, was the date(s) for the lowest price available? Was it more than a day or two at this price. If only for a day and not available, listing will still show high in sort order when traveler searches price low to high.

          • Re: Rent at any Cost?
            u0999 Premier Contributor

            there are hands off investor/owners (or ppl who think they are) who accept vacasa's promises to generate $X a month at face value and let vacasas of the world run with it. So they technically don;t care if it is rented for $130 a night to $1300 .. that is until they discover wear , tear and damages and then honeymoon will be over. But then vacasa would have lured a new batch of "owners" with promises of hands-off easy money.

            • Re: Rent at any Cost?
              feibus CommunityAmbassador

              There are places like UP of Michigan where if you can find someone to rent your place for a cold winter's night, you're happy to rent it to them for a lot less than you'd rent it to them during the summer.  Could that be what you're seeing?

                • Re: Rent at any Cost?
                  psphoto Active Contributor

                  feibus wrote:

                   

                  There are places like UP of Michigan where if you can find someone to rent your place for a cold winter's night, you're happy to rent it to them for a lot less than you'd rent it to them during the summer.  Could that be what you're seeing?

                  I'm sure.....but at some point you have to wonder is it better to lose some customers who you might not want to rent to in the first place.

                  You really don't want to be the lead in a race to the bottom.

                  There's a reason real estate developers would rather give some "extras" away ( better appliances, better loan rates ) than move the pricing down on a multiple unit development. Once you set a new lower threshold, it's hard to go back up.

                  In our case, we are seeing more and more properties listed as short term rentals....many with Vacasa, and then placed on Vrbo as well.

                  Of course.....our rates vary low too high season. Just not this much!

                  Did I mention they vary the cleaning rate low to high season as well?