Shutterstock: Panama City, Florida Ranks Number 1 On Rented.com's Best Places To Buy List
Andrew McConnell, Rented.com’s CEO talks about the surprises and changes in this year’s third annual report. “The biggest change year on year are urban destinations climbing up in the rankings. Airbnb and VRBO have created this demand with vacation and business travelers.” McConnell observes. Take Chicago for example a newcomer to the top 5 ranking at number 2 this year.
Rented.com, founded in 2013 is a unique operation in the vacation rental industry, valued in 2016 at $100 billion and expected to reach $167.9 billion by 2019 according to the Vacation Rental Management Association . It’s no surprise, Millennials are fueling this explosive market growth.
Shutterstock: Chicago Ranks Number 2 In 2018
Rented.com has vacation rentals on six continents and more than 500,000 rental weeks listed. Rented.com connects vacation rental owners with its 1000-member professional vacation rental managers who manage and rent the properties. Everything is seamlessly handled through Rented.com.
Thanks to a $125 million capital fund, Rented.com guarantees owners an above market long-term income through 12-month contracts with Rented.com. The vacation rental managers rent these properties through VRBO and Airbnb. “I tell people if you value your time, don’t really enjoy managing your property then let a professional do it,” said McConnell who has law degrees from both Harvard and University of Cambridge.
Do keep in mind with Congress passing last December’s federal tax bill possible changes to state tax laws may impact vacation property ownership. If you are considering purchasing a vacation rental property this year listen to William Hardin, Professor of Finance and Real Estate and Director of the Hollo School of Real Estate at Florida International University. “The real question you have to ask is are you buying for vacation enjoyment or as an investment. The expectations are very different for each. If you plan on using it yourself and wanting to rent it to offset costs you must do your homework,” explains Hardin who owns two vacation properties. “Look at the net income carefully after total expenses, look at the type of vacation rental market it is from year-round to seasonal. If you want to use it yourself in season then you’ll be giving up prime rental income,” Hardin adds.
Biggest caveat—Don’t go on vacation, fall in love with a destination and buy a property on the spot. You very well may have buyer’s regret.