Category: Vacation Rentals

We welcomed so many fabulous additions to our vacation rental program last year. In case you missed them, all of these new properties offer a variety of options from 1 bedroom condos to a 6 bedroom house. Many of these are oceanfront or have ocean views, and are on Isle of Palms, Folly Beach, and in the Wild Dunes Resort.

3302 Cameron Blvd., “Marsh Madness”

44 Intracoastal Court, “Coral Relief”

1693 East Ashley Avenue, “Aydlhaus”

807 West Ashley Avenue “Cabana Blue Seascape”

807 West Ashley Avenue “Cabana Blue Oasis”

9 Sandcrab Court, “Island Cottage”

114 Grand Pavilion “Boardwalk Bliss”

203G Port O’ Call, “Time and Tides”

Book your 2015 vacation rental today!

South Carolina legislators are pushing a new law through that will allow home owners the availability to rent their primary residences as vacation rentals for up to 72 days from the current 14, without effecting their primary status. This means that home owners may elect to have their properties work more efficiently for them and earn their keep in offsetting ownership costs without having to worry about losing their 4% ratio and additional tax breaks.

A similar law was proposed several years ago, but was not successful getting passed. Now the law is coasting through with unanimous approval for vacation homes.

The County Assessor estimates that just under 500 homes will benefit from this plan and that about $1 million a year will be lost in tax revenue, according to the Post and Courier. However, what is not being stated is how this incentive will boost home sales in vacation areas around the Lowcountry, which will, in turn, provide a return in tax revenue to the state.

So, who wins with this program? Just about everybody. Homeowners will be able to better offset expenses, while home sales will boost the economy, aiding restaurants, retail, construction, and every other facet that benefits from a strong home market.

Good job S.C. Lawmakers!

-Brian Caldwell  843.224.7948  bcaldwell@dunesproperties.com

Not only did the vacation-home market have its largest gain since the National Association of REALTORS® started tracking home sales in 2003, but the market also accounted for 13% of home sales in the U.S. last year. Additionally, nearly half of vacation sales last year were in the South.

In their 2014 Investment and Vacation Home Buyers Survey, the NAR shows vacation-home sales jumped 29.7% to an estimated 717,000 last year from 553,000 in 2012. This boost in vacation-home sales can be attributed to last year’s stock market gains and rising home values, which brought buyer’s more wealth and confidence in the housing market, according to the Wall Street Journal.

Vacation property sales

The combination of buyer’s confidence and rising wealth of high-income households is what The Wall Street Journal calls the “wealth affect,” where people are willing to spend more money because they feel more wealthy. Many households last year earned more income, with the top 60% of earners seeing a 2.3% rise in income, according the U.S. Census Bureau.

So, why were buyers purchasing vacation homes? The majority of buyers want to use the property for vacations or a family retreat, while a small percentage may use it as a primary residence in the future or plan to rent it to others. These are all great reasons to invest in a vacation home, and there isn’t a better place to look than Charleston. With gorgeous beach communities like Isle of Palms, Wild Dunes, Folly Beach, or Kiawah Island, there are plenty of great options for a vacation rental. Come stop by one of our offices and chat with our experienced real estate agents or vacation rental management team!

Some of us cherish our vacation time and use our paid time off up to the last second. Others may be too busy at work to use all of their paid time off, or simply don’t have the desire to go on vacation. For those of you that leave a few hours on the table each year, you’re not alone. It turns out that over 40% of Americans who receive PTO don’t take advantage of it, according to a new study conducted by Oxford Economics for the U.S. Travel Association.

Did you know that among some of the benefits of taking your vacation time include higher productivity, stronger workplace moral, greater employee retention, and significant health benefits? Taking your vacation time is good for you!  Get away for a little while and unwind with your families, relax on the beach, read a book, and stimulate the economy while you’re at it. In fact, take a look at the amount you would be contributing to the economy if you took time off work, or how significantly you could be harming the economy by squandering a portion of the paid time off:

• Americans left a total of $429 million in unused days last year, at an average of 3.2 PTO days
• The economy would benefit from more than $160 billion in total business sales if workers used all of their available PTO
• Spending the $160 billion available from this PTO would support 1.2 million jobs in industries ranging from retail to transportation
• Taking one additional day of PTO off each year would have a $73 billion impact on the economy

If you’re not already booking your flight and renting your vacation home, then you should consider it. Not only is it good for the economy, but it is of great value to you personally.  Besides, what better way to gather your thoughts for your next big sales meeting or conference than by spending a few days sipping a delicious beverage on the beach?  Call us 888.843.2322 to book a vacation rental today.

Watch Out For “Location, Location, Location” Tunnel Vision

When designing a vacation rental strategy, success is found with five (or more) main amenity points. It is common to hear, “location, location, location,” in the business, but the perception of view and location often improperly shadows the importance of offering other supporting & unique amenities.

Focus On 5 (or more) Main Points of Amenities & Features

We have found offering five (or more) main and unique amenities will provide most vacation home owners with a healthy calendar and a robust rental rate… no matter the location and size of the property. Real estate pricing often leads buyers, and even some inexperienced agents, to believe a large oceanfront home is the best bet for producing rental income. This is often incorrect.

Unexpected Results

One of my most prized vacation rental accounts was a small, but beautiful, 2 bedroom beach house. The property was in demand nearly year round as it had little competition due to the unique size. This allowed for a solid 10 month rental season and for a very attractive rental rate for the home owner… in some cases much higher production than a 3 or 4 bedroom property. The home featured special amenities such as a Netflix movie device, a decked out & comfortable porch, wireless internet, flat screen TVs, pet friendly access, and totally remodeled baths & kitchen. A free book exchange added a great touch and a cabinet of board, dice, and card games provided the extra details guests seek while searching for the next vacation.

Not Just Rental Price

This is what is often misunderstood by managers and even some home owners; guests desire more than a low price and a place near the beach. Guests wish for relaxation, ample options, and value added features… even if they will not use them. Marketing these features properly captures a guest during the search and validates value when considering an above average price.

Guiding our clients with affordable and powerful marketing ideas which transform a property into a vacation experience is another service we offer at dunes properties. We invite you to explore more about our program!

by Wes Walker
Vice President of Rentals
Dunes Properties of Charleston
(843) 513-1604

Related Reading for Vacation Rental Home Owners…

• View all tips for vacation rental owners

What Are “In-House” Services in Vacation Property Management?

I’m often asked by potential clients, “What ‘in-house’ services does your company provide?” This is a great indication a sales pitch has been provided by another vacation property management company. ‘In-house’ refers to services provided by staff or employees of the vacation management company such as cleaning, HVAC repair, handyman work, and many others. It is specific work completed by the staff of the company… and billed by the company to the home owner. These services are not provided by 3rd party, independent providers like outside cleaning companies and HVAC repair companies. The services operate and originate within the management company.

How “In-House” Services Could Be Problematic

When a home owner selects a property management company, the relationship shares the same responsibilities as that of a real estate agent. Those legal responsibilities are Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care as written in SC Real Estate License laws. We, as licensed professionals, have a fiduciary responsibility to represent our client’s best interest first.

How can management companies represent a client’s best interest if the company decides how much a service, provided within their company, should cost for their client, the home owner? It seems like an obvious conflict of interest and a lack of transparency and the fiduciary responsibility previously mentioned.

Remember, your vacation management company should be working for you… and not vice versa. You are hiring someone to represent your best interest as the client and home owner. At dunes properties, we do not staff maintenance personnel, HVAC repairmen, or cleaners. We coordinate 3rd party providers so prices can be negotiated lower for our clients. It is the correct way to offer vacation property management and offers transparency to clients.

Similarly Troubling…

Unfortunately, it has become commonplace for legacy management companies to charge their clients a percentage of invoices. In my opinion, it is a terrible practice and also seems to be a conflict of interest. How can a company represent a home owner’s best interest if the company orders service and then receives a percentage of “mark up” on the work performed? It is arguably a legal kick back. Always check your management agreement for counter-intuitive inclusions like invoice mark ups.

by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513-1604

Related Reading for Vacation Rental Home Owners…

• View all tips for vacation rental owners

Why Guests Vacation

What guides a guest to book a vacation rental? Most believe it is price or location or amenities. Yes, these are very important, but it is important to remember the vacation is not about a house or condo or even the bells and whistles. It is about an experience. It’s somewhere to spend time with friends and family… and most importantly, to enjoy some rest & relaxation.

Rest & Relaxation

It appears obvious when stated, but R&R is the #1 reason guests vacation… and it is often over looked by many in the vacation rental business. Even guests tend to forget this during the lengthy research. Everyone is focused on pools and taxes and all the minor details… so it’s important to never forget why guests vacation. It’s all about the R&R. Guests want the confirmation and the reminder of why they began the quest in the first place. Great photography capturing the look and feel finishes the picture.

Sleeping Arrangements

We are often asked by new vacation home owners, “What sleeping arrangements should we use in our vacation rental?” I think it’s one of the most important questions we’re asked.  Keeping a mix of larger beds (queens and kings) with a few single sleeping arrangements will provide the best rental interest across all seasons. Often, we will suggest using a double / twin hybrid bed set for a 3rd or 4th bedroom… or a queen with a single trundle hidden below. It works well for singles travelings or young adults/kids. It’s important to resist the urge to decorate a room for kids. This limits your options.

Big, Beautiful Bedding

Fluffy and inviting bedding is also a great investment. It solidifies the guest’s interest for a relaxing vacation. Bedding will need replacement frequently as it is expected to be well enjoyed, so plan to replace these items often. It’s better to continue taking high value reservations than to worry about the relatively minimal cost of bedding.

Furniture and Furnishing

Furniture is also a big selling point from a guest’s perspective. Properties decorated with a thrift store approach are quickly skipped by potential guests researching online. Investing in affordable, replaceable, and inviting furniture is another extremely important step to owning a successful vacation rental.

by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513-1604

Related Reading for Vacation Rental Home Owners…

• View all tips for vacation rental owners

The Most Costly Vacation Rental Furnishings

In the past, homeowners would fill their rental homes with low price furnishings. It was a great way to save a few bucks, right? Grab a few tables, dressers, bed sets, and wall pieces from a thrift store and voila… a full furnished vacation rental!

This is no longer a good idea. In fact, the thrift store approach is a very, very poor one and extremely costly for vacation home owners.

Today’s guests have an endless list of vacation options thanks to the web and growing vacation rental marketplace. While online, guests quickly compare properties’s furnishing. Poorly furnished properties are skipped… and quickly skipped.

Owners still using the “thrift store” approach often forget why people are thinking of vacationing. Guest want to rest and relax. Yes, the beach and water are a big part of the interest, but rest & relaxation are the keys to great vacations. Without a good presentation of a comfortably furnished property, “thrift store” properties are doomed to a wildly poor rental schedule.

What To Avoid – The Big Three

• Light Tan Woods – looks like it was just in a dorm room
• Everything Wicker –  color doesn’t matter but white is the worst
• Gold & Brass – this is more about hardware but gold/brass takes 20 years off your property

How costly is the “thrift store approach” in vacation rentals?

A strong example can be made for two side-by-side condominiums we managed years ago. The first condo was comfortable, colorful, and updated. The second was decorated by an owner with a thrift store preference. The first condo owner generated $30,000 more in a year than the second condo owner. The investment of a few thousand in good furniture generated 10x the return. Other hidden loss also includes the maintenance to repair and patch old furniture.

It is important to mention that furniture price is not the key. Affordable, comfortable, and replaceable is the best approach. Pricey and custom furniture is the same mistake as buying thrift.

by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513-1604

Related Reading for Vacation Rental Home Owners…

• View all tips for vacation rental owners

The Importance of Professional Photography

Although this may seem like common sense, it is surprising how many legacy property management programs overlook this #1 in marketing a vacation rental home or condominium. The web has changed how customers absorb information. The importance of visual has not changed, but the speed in which a customers needs to experience the vacation home through photograph has changed dramatically.

Are Vacation Home Warranties Good For Vacation Rental Owners?

The short answer is no. Home warranties are famous for delayed responses and low price (value) technicians. Still, I can consider the argument of home warranties are good values… but for primary residences only. Even then, I find they are frustrating and typically without complete resolution.

For vacation rentals, large and important purchases / repairs are mostly likely needed during a busy season of high use. Think refrigerators and air conditioning systems. These season are often filled with vacation guests paying thousands in rental rates for a few nights of relaxing vacation time.

When a system needs repair, the guest often expects an immediate result… regardless of what they would expect at home. Warranties add lots of delays, and more delays create potential liability for the home owner. The longer a guest waits, the more likely a credit or refund is expected.

My advice… ignore the home warranty unless it’s January or February. Otherwise, it is likely the perceived savings of a warranty plan will turn into an unseen expense with the move or refund issued to a understandably hot and frustrated vacation guest.

by Wes Walker
Vice President of Vacation Rentals
Dunes Properties of Charleston
(843) 513 1604

Related Reading for Vacation Rental Home Owners…

• View all tips for vacation rental owners