Vacation rentals by owners in Minnesota(VRBO)

  • VRBO Minnesota has been know as vacation rentals by owners. This term has been used a lot in the last 10 years for people searching for home rentals for the purpose of a vacation. In fact the growth for private home rentals has brought a lot of cities to put laws into their books to regulate them.

    Those interested in cashing in on what Vacation Rentals by Owner has to offer need to keep many factors in mind. First, it is vital to have a high quality product that people want. Part of having a high quality vacation rental is to make sure that your vacation rental is top notch.

    Renting a vacation home doesn't have to be stressful. Thorough and advanced planning can make your holiday more enjoyable and help ensure that you'll be able to book the home you desire at a price you can afford.
    Minnesota vrbo
    If you're looking to rent a vacation home but don't know where to start, you're not alone. Finding the perfect beach house or vacation villa isn't easy, but there are ways to set yourself apart from the herd and guarantee you get the vacation you want without breaking your budget. As with most endeavors, planning ahead and being organized are the keys. 

    Avoid some of the stress and excessive costs that can go with trying to secure a vacation home, particularly during peak season and on short notice, by thinking, researching and planning at least six months (but preferably a year) in advance. While this may seem excessive, keep in mind that vacation rentals - at least, the good ones - usually book up fast.

    If you're not sure where to start, your first goal should be to nail down your destination and the approximate timing of your trip. Once you've made these decisions, a real estate agent who specializes in your destination can be helpful in finding a vacation home rental. Consider contacting popular brokerages that have a large presence or looking for individual agents that are known and respected in the area you are visiting.

    Also, online local newspapers can be a great resource (some rentals don't go through a real estate agent), and so can websites that specialize in vacation rentals. For example, VacationRentals.com provides details on rentals in all 50 states and numerous countries throughout the world. VacationRealty.com is another site that can help you secure a vacation home near the amenities you desire. Craigslist also advertises vacation rentals.


     

    The home that pays for itself

     

    The most consistent statistic observed throughout the life of HomeAway’s Vacation Rental Report is the ability for homeowners to cover the cost of ownership through renting to travelers.  Again in 2016, nearly three-quarters (70 percent) of vacation rental owners are able to cover more than half of their mortgage through renting, and more than half (54 percent) cover three-quarters or more of their mortgage.

     

    According to the National Association of Realtors*, of the 920,000 vacation homes purchased in 2015 in the U.S., the average purchase price was $192,000 and 61% of buyers used a mortgage to finance and will count on the income from renting to pay down the newly acquired cost of ownership.

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    The salary of a vacation rental owner

     

    Survey responses show that vacation rental income comprises about a quarter (24 percent) of the average owner’s income, from investing just fewer than 10 hours per week in the management and marketing of their vacation rental. 

     

    From that relatively small amount of time spent advertising, fielding traveler inquiries and coordinating the cleaning and maintenance of their property, owners use the money to pay off the mortgage (38 percent), upgrade and renovate the property (70 percent), fund their everyday living expenses (23 percent) and save for retirement (11 percent).

     

    The flexibility of vacation rental ownership is certainly beneficial to vacation rental owners as HomeAway has observed the average owner grosses $28,000 in annual income** from renting to families and groups.  From an investment of 10 hours per week, an owner is essentially making an “hourly salary” of $54 per hour spent working towards the booking of his/her property.

     

    “The clear benefits of vacation rental ownership start with the personal enjoyment a family can experience with their own vacation home,” said Brian Sharples, HomeAway co-founder and CEO. “But the simple mathematics of renting that home to travelers and making a significant dent in your mortgage, and even increasing your family’s annual income, is an excellent bargain in a world where vacation rentals are growing more and more popular.”

     

    Sharing the cost of ownership

     

    A notable trend the Vacation Rental Report has uncovered is the shared ownership of vacation rentals.  The same 29 percent of properties for the survey’s last two years are owned by more than one person, most often with a family member or friend.  Co-ownership is another method to ease the financial burden of taking on an additional property.

     

    The concern of return-on-investment, according to the survey, is not a concern for most, as the average vacation rental has been owned for 6.5 years and has appreciated $184,066 over that period of time.  With pooled resources from a family member or friend, equity growth, a continuing stream of travelers paying to rent and the opportunity for personal and family use, vacation rental investment can be a healthy one.

     

    Translating concern into a successful business

     

    Most vacation rental owners wait for 1.4 years before renting their home to travelers, citing various reasons for the delay.  The vast majority (84 percent) of those who held reservations prior to the rental of their home were most concerned about property damage. 

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    Debunking the concern over property damage, HomeAway insurance partner CBIZ Insurance Services, creator of the HomeAway Assure home insurance policy, notes less than one percent of claims filed are attributed to damage committed by a short-term renter.  The types of claims are nearly all accidental damage committed and the average payout is less than one thousand dollars each.

     

    “Many people entering the vacation rental market do so with a sliver of reservation, and for good measure,” added Sharples. “But time has proven that vacation rental travelers, by-and-large, treat the vacation homes with respect, preferring a personal and unique stay over a cramped hotel room.”

     

    Another reason noted for owners not turning over the keys sooner is the worry that they would not be able to use the home personally as much as they would like to (23 percent).  The most common reason (33 percent) for purchasing a vacation rental is indeed for personal use, but surprisingly, owners only spent seven days in their rental over the course of the year. 

     

    From separate research done with HomeAway vacation rental owners, the average vacation rental books about 18 weeks each year**, leaving a large amount of time for personal use, or the use of family and friends.

     

    Of those who would like to spend more time in their vacation rental, 24 percent of owners wish to have more vacation days to use throughout the year, 41 percent would prefer fewer work or family commitments in order to utilize their vacation rental personally.

     

    Additional key findings in the Vacation Rental Report

    • The average age when owners began renting their home is 49.5 years old, 6.5 years younger than last year’s respondents
    • 21 percent use or plan to the use the income he/she received from the rental of their property to pay for their child’s education. 
    • Of those who’ve rented their homes for large events (31 percent), the rental rates are $89 higher per night – translating into a 40 percent revenue increase for the timeframe (based on the U.S. average rate of $220 per night2)
    • 8 percent of vacation rental owners claim to have purchased their vacation home before their primary home

     


     

     

     

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MINNESOTA CABIN AVAILABILITY

Weekly Stays Between June 10 and Aug. 19 Except for Cabin # 9-10-18 we allow 2 night stays

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Contact White Birch Resort for Your Next Minnesota Vacation Experience
218-835-4552

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WHITE BIRCH RESORT

Bemidji Region - Minnesota
18882 North Blackduck Lake RD NE Hines, MN 56630 Office 218-835-4552 Cell 218-553-0210
Email - vacation@whitebirchresort.net