Vacation rentals have witnessed exponential growth, transforming how people travel and experience new destinations. However, with this growth comes the need for advocacy. The vacation rental industry is one that many hesitate to use due to uncertainty and doubt, but they need to understand the many advantages. Renting out a property to customers opens an entirely new avenue for income and opens doors for a broader market. The ability to rent short-term or long-term properties has given people a remarkable opportunity to increase their income. In this blog post, we will advocate for vacation rental properties.
What is the Vacation Rental Market?
The vacation rental market is an industry that offers travelers the option to stay in private residences instead of traditional hotels. These rentals include furnished apartments, houses, condos, single rooms or complexes rented out to travelers as an alternative to other housing. These rentals have the basic amenities, and guest stays are usually thirty days at most. Over the years, this option has gained much traction and popularity because of the home-away-from-home experience.
Rise of Vacation Rentals
Over the past three years, vacation rental owners and managers have seen several changes that have impacted how they operate. When COVID-19 hit and the government-imposed travel restrictions, the resulting surge of demands for vacation rentals was incredible, causing a massive rise in vacation rental demand and activity. However, with every increase in an industry, there will be complaints from the community. Most of these complaints were concerning excess trash, incessant noise, too much traffic, too many cars, parking issues, and more. Therefore, due to all the complaints, there is an almost daily surge of people asking for a ban or severe regulation of vacation rentals. The rapid expansion of vacation rentals and their growth in popularity brought an outpouring of complaints.
National Organizations, such as the Vacation Rental Management Association (VRMA) and Rent Responsibility, have been crucial in fighting for vacation rental advocacy. So, over time, the most effective advocates for rental communities are those who have a close relationship with a public servant. Now, depending on the needs of the owner or manager of their rentals, the cost of hiring a professional advocate can vary. However, there is no harm in fighting for advocacy alone, just as long as you have done the required research and can effectively advocate for the industry’s interests.
Short-Term and Long-Term Rental Advantages
1. There are Tax Benefits.
This industry is a business venture with plenty of tax advantages. A vacation rental property would be considered a business and most of the expenses to do with the property are considered tax write-offs: maintenance, repair costs, insurance, marketing costs, mortgage interest, and property management fees.
2. There is a Real Rental Income.
More and more travelers are beginning to recognize the advantages of short-term rentals over hotels, which creates a steady, positive cash flow. Some travelers are willing to pay a premium for vacation rentals, making a higher rental income than traditional long-term leases and the flexibility to adjust rates based on demand. Research shows that vacation rentals are responsible for 130% more revenue on average than conventional long-term rentals.
3. The Ability for Dual Usage of Your Properties.
You can rent or use the property for your own time as an owner or manager. In other words, you can earn money off renting the property throughout the year as an investment and use it as a quick holiday whenever you want.
4. Real Estate Appreciation.
There is the possibility that the property you use to rent or as a second home will slowly appreciate over time. So, if you ever decide to sell the property, there is a good chance you can make a profit. The property offers short-term income in rent payments while appreciating over time. No matter the outcome, there is a strong possibility of a high return on the investment.
5. Easy Marketing Opportunities.
With the rise of platforms such as VRBO, Airbnb, HomeAway, and other booking platforms, thousands of guests can view and apply for vacation rentals. This market is an incredibly lucrative investment; for example, Airbnb has earned over $100 billion in rental income globally.
To continue advocating for the industry, getting involved with the local community leaders, volunteering in the community and paying taxes, will allow for you to have more of a voice in decision making. Advocacy will create an opportunity to keep the local governments from placing too many restrictions and allow for continued growth in the vacation rental industry.
InnStyle can Help Vacation Rentals
InnStyle works with many different hospitality properties, including vacation rentals. Those here at InnStyle are always available to help all customers find the best-fit linens and amenities for their properties. InnStyle offers a wide selection of products, including their InnStyle 300 Millennium Hospitality Sheets, Micro Chevron Sheet Sets, and the Green Natura Amenities. If you have any questions, please call InnStyle and speak with one of their account managers. They are always happy to help! InnStyle can be reached at 267-354-6020 or 800-877-4667. Their website is https://www.innstyle.com/.