[It's Freezing]

Despite having nice people and places the tourist business world-wide including hotels, vacation rentals, air travel, cruise ships, etc. is down significantly. I know specifically hotels in prime tourist areas (Hawaii and Niagara Falls) are down 38%. I don't reside in your country but the news I get indicates Florida is hit very hard by this recession. My question is, will Florida have to reduce their high season rates to low season rates or special incentives in order to fill rentals for 2009-10 high season? There was a Canadian news story last week of a luxury $750,000 home on the north east coast of Florida being taken over by squatters. I was surprised how easy it was for them to move into such nice homes. I've noticed many vacation rentals are owned by out of state owners and it would appear prudent to at least keep their places occupied and have monies going to maintaining their investment. It seems Florida has had a building boom so there is no shortage of rentals but it appears there will be a shortage of renters due to the economy for 2009-10. What has happened to rates in previous recessions?

[On-da-Beach]

I have a property management company here on the panhandle gulf coast. Rentals are down. People still take their vacations, but are more cost motivated. They will shop and compare rates until they find the cheapest. Also, where folks would stay for a week, they now look for long weekends.

I missed that Canadian news story, but there are a couple of stories here of people gaining access to a property and "moving in". Local law enforcement ran them out with no problems except for damage to the home. My company would catch someone right away since we visit and inspect every property weekly, occupied or not. This is where those out of state owners can take advantage of our services.

Most of the homes here were built as vacation rental investments. Those investors thought that if it didn't pan out, they could just sell the property and make some profit that way. Then the market tanked. Homes were loosing value over night and investors were scrambling to get out of trouble. A huge number are for sale (and have been for a while) and many are in foreclosure.

Since rental income is down, some management companies are simply raising their commission rates to help make up the difference. That only hurts the owners/investors even more. It's a tough business some times, but honesty and integrity are two of the best tools to carry.

[It's Freezing]

Thank you for your excellent response. I agree there are some people that still take vacations and costs are a very significant factor. A term I have heard used this summer is, stay vacations, and we know the significance of that. I live in a ski/golf tourist area and so far this year the crowds have been sporadic. Sometimes you see a lot of people and other times the stores, streets and parking lots seem unusually deserted. There is competition amongst the businesses for the existing tourists that show up and those that are not sound financially will suffer badly. I noticed one place in Hawaii offering 25% discount on rates. My wife and I are retired seniors and non smokers/non drinkers/no pets and we have have started to look for a small winter vacation rental in Florida. Two factors that seem to be at the forefront is the economy and crime. I know there are very nice honest people and very safe communities in Florida but we've never been on the gulf coast and it's a daunting task to sort it out when we are so far away. Especially regarding deposit scams, inaccurate photos, foreclosure status, ownership, etc. We plan to make a quick visit in Oct. to inspect our prospects, make a selection for a safe affordable place, and return in the winter.

[On-da-Beach]

I'll be glad to help you sort things out if you like. Sounds like you have a better handle on it than most.

[It's Freezing]

Here is some positive things that will help Florida tourism. The Canadian dollar has moved up and you can buy $1,000US for $1,078 CAN as of Aug 4th. Tourists will be avoiding Mexico as countries have issued travel warnings on Mexico due to drug gangs and resulting crime.

[faithfulFrank]

I have a home in a 55+ gated golf community in Central Florida.

I do not use a rental manager, but have a VRBO webpage.

I rent it out to seniors who either want it for at least 3 months or more during the winter season, (snowbirds) or to folks who are looking to buy in the area, and use my home as a homebase for finding their own piece of heaven.

The snowbird season is always booked about a year or so ahead of time, and I easily turn away over 100 couples who call me or e-mail me.......and those are the ones who did not check the availability calendar.

I have had more folks want to "negotiate" the price, but I only even consider that on rentals 5 months or more, or if I have an open month that is coming up soon. I feel my prices are reasonable....indeed, during those peak snowbird months based on the volume I turn away I could conceivably raise my prices.......but I will keep them what they are for now. I include many nice amenities and feel it is worth every penny. It will be my retirement home in a few years, so I put the best of everything in the place...it is much more then just a rental for me.

I think more folks want to wheel and deal on the price because of all those priceline commercials.......(I'm not a hotel)..or because their retirement accounts took a big hit. I cannot compensate for that.

The place is always rented during those peak months, and I've never had an unhappy guest, so I will keep everything as it is for now..........

Frank

[It's Freezing]

It sounds like you have an established clientele and built a solid reputation for value. The only thing you have to be concerned about is replacing clients who, even though they love your 55+ homes, they can no longer come for the winter due to aging, health or money reasons. The vulnerable businesses are those that have just been in it the past 5 or 6 years and with bigger financial obligations and can't take a downturn in business.

[GreggT]

We have a vacation rental in the Panhandle area. We have discounted our rates a maximum of 20% through VRBO. The net result has been positive over 2008 as we are remaining booked the majority of the time. I think the key is maintaining our property, keeping it clean and updated, and promptly getting getting back to any requests, questions, etc. I feel our rates are fair so don't see any need in further discounting just to put a "head in the bed".
We constantly get requests to where folks are just making their decision on where to book on price alone. We will let other folks fight over that business as we have found those types generally treat our property like a "motel room" and we would rather not deal with the disregard of our property that historically these people have shown.

[hiknapster]

And Disney, in its infinite wisdom, jacked up their ticket prices.

Glad to see your making some money off your place, Frank. It's a retirement mecca, and that demographic likes to go to the same place year after year. It's like "Old Home Week" when they return and see all their friends.

My great aunt and uncle did that for years in the 60s and 70s, following the Boston Red Sox to Winter Haven. They had a lot of fun and I'm glad they had the memories.

[It's Freezing]

The numbers for tourists will be down. In a Florida jurisdiction I noticed a bed tax in June was down over 9%. Don't you think Disney hopes to offset some of the loss by increasing prices. I think it is disrespectful if a renter walks in with heavy shoes demanding a discount. The way I look at is I look for what I can afford and I expect the owner to list the price they need. If it's a match, great, otherwise I don't want to be on holiday with a conflict in the background between the owner and myself. It's not worth it. We are looking for the first time in Florida this year because our dollar is rising a bit and we may find a place. We'll make our decision in late October.