Vacation Rentals Final Day of Reckoning
For nearly a year-and-a-half Vacayrx has been a proponent for individual property owners and professional property managers within the vacation rental space that are looking for a better way forward.
As the large listing platforms eliminated phone numbers, made guest screening all but impossible, increased fees, and whitewashed the experience in an overall money-grab, the industry has writhed at every turn.
While this has benefited the growth on vacayrx.com substantially and allowed us to balloon to more than 3,400 Live property listings worldwide, there will be one more announcement over the coming months that is expected to shake the industry to its core.
It is being predicted by some of the industry’s top thought leaders that the large listing platforms will move entirely away from guest fees and place the entire burden on the property owners and managers. While the specifics are unclear, it is projected that these fees may range well into the 15%-20% range, which will make the cost of listing properties on these platforms significantly more expensive.
For example, if a homeowner is listing their single property on one of the sites and averages $50,000 in total rental income per year, they may see listing fees as high as $7,500 to $10,000!
For professional property managers, this will be even more alarming. Assuming a portfolio with 50 properties, and the same average earnings, expect to pay upwards of $350,000 to $500,000 in listing fees!!
These astronomical figures will undoubtedly bankrupt a number of professional managers and make the unit economics of even a single home rental a distasteful option.
While homeowners have long since understood that vacation rentals can yield 20-30% more than a long-term lease, the numbers will no longer crunch, and given the significant added responsibility and efforts needed to maintain a vacation rental the juice will simply no longer be worth the squeeze.
While these uniform changes have swept the industry for several years now, with competing companies making similar policy changes within a short time span of each other (and somehow managed to face any serious repercussions of collusion) this change may finally get the attention it deserves.
In the meantime, it is imperative that property owners and managers continue to gear up for Direct Bookings and begin aggressively seeking alternative platforms such as Vacayrx.com which still offers flat-listing fees, predictable price points, and pre-booking communications between owners/managers and their guests.
For more information, please visit Vacayrx.com or begin building your property listing(s) or submitting your information for a quote by following the link below.