If you’re looking for properties in the Fort Morgan area, you might be thinking about enjoying it some of the year and renting it out when you’re not using it. Websites such as Airbnb and VRBO make it easy for owners to offer their homes to families and individuals who want to spend time at the beach. If you’re thinking of investing in Gulf Coast property for use as a vacation rental, here’s what you need to know.
Personality Attracts Guests
Some buyers fear that an attractive, upscale beach vacation home is out of their financial reach. However, guests who stay in vacation rentals are looking for an experience that’s unique.
Hotels provide luxury rooms, high-end surfaces, and premium amenities, but that’s not your target audience’s highest priority. Look for a home you fall in love with for what makes it unique, and your guests will do the same.
Guests Expect Instant Gratification
The millennial generation is starting to raise families, and they are becoming more interested in traditional family vacations. But they don’t book these vacations the same way their parents did. They don’t spend much time researching their options or waiting for replies when they ask questions. Before you count on rental income to make up part of your mortgage payment, ask yourself how much time you have to deal with inquiries and provide instant bookings.
You’ll Have Online Travel Agency Fees (OTA)
By 2018, an estimated 75 percent of all vacation bookings will come through online travel agencies (OTAs). Expedia acquired HomeAway and Priceline promotes its Booking.com. OTA channels have powerful marketing budgets and make it difficult for smaller agencies to compete. This is how travelers will book in the future, so it makes sense to offer your home on channels that receive the most traffic.
Some OTAs offer automated response tools that immediately respond when guests ask a question, so they help increase revenue. Hosts pay OTAs a fee for every booking. The amount you need to budget for guest acquisition varies according to the agency you choose.
Supply and Demand Are Both Growing
The alternative accommodation market is expected to grow to $37 billion in 2018, up from $23 billion in 2012. Hotel chains still report the same amount of traffic, which means growth is in other types of vacation rentals. Areas like the Gulf Coast are especially attractive to individuals and families.
Whether you’re seeking a family home or an income-producing rental, contact Kris Powell today to find your dream property.