USA Today reports more Americans are renting out their vacation homes, because they can’t sell them or are unwilling to sell for a loss. The rental income allows them to stay afloat while waiting for the vacation home market to pick back up again.
While the overall housing market remains in a deep slump, the vacation market is in even worse shape. Sales of vacation properties have been cut in half from their peak in 2006, before the financial crisis hit. Just last year, median sales prices of vacation properties dropped 26.5 percent to a record low of $150,000.
The result is that the vacation rental market has become flooded with new listings, keeping rental rates unchanged this season and creating even more options for those seeking a vacation rental.
While it may sound tempting to rent out your furnished vacation property to other travelers, try listing your property as a corporate rental on Corporate Housing By Owner instead. You’ll avoid entering the over-saturated vacation rental market, and instead be exposed to corporate travelers, where there is high demand for furnished properties.