Should 30-A rental rates increase?

[dunelover]

Would significantly higher rental rates in high season keep renting visitors away?

As one who has vacationed in the destin and SoWal area for over 20 years, it would have an impact on my choice. Yes, we comparison shop online, and would choose a location for our budget. Nothing compares w/ SoWal, but at some point people may consider other locations like Hawaii, cozumel, etc. Not the same I understand, but some of us that come from the Midwest, can choose either coast or gulf. And, to us since the real estate market is declining, and home prices lower, it would seem a little like gouging.

Just a little fyi, but for me, I hunt for places that have lower rates (fall rates) first week in August, lower crowds, and better rates in the full summer sun.

 

[Destiny]

I vacationed in PCB for most of my 50+ years and loved it. The properties in PCB now are too big, too many, and taking away from the bech. It is difficult to see the beach when riding down Front Beach Road. We discovered 30-A about 20 years ago and love the area. It has built up too but does not have the "skyscrapers" and vast number of rooms that attract so many people. The rates in PCB have also continued to rise. I prefer to pay more for the ability to actually see the beach with ease and know the community really cares about what happens along 30-A. To me, the minimally higher rates would be well worth the rental cost of the condos in PCB are skyrocketing.

I understand Shelly's info on the tighter budgets but also recognize that many make sacrifices daily and will continue to do so to be able to relax in the area you most love and feel comfortable.

Decisions like this are not easily made by the owners. I wish the best for those of you that have to make decisions.

 

[spinDrAtl]

The market that comes from the South - Texas to Florida and North as far as Tenn/Kentucky, pretty much always drive down. Every time I am at High Pointe, those are the license plates that fill the lots. For a family of 4 or more, that means significant savings over those who fly in from the midwest or further out. We get repeat renters, neighbors, and friends who do not like the high rises, want a little more quiet, want an uncrowded beach and so on. I do think that the off beach properties will have to work harder and be careful on price points more than the beachside as those who want beachside will be happy to pay for it. Having said that, our rates have been pretty stable for the last few years.

 

[JeanLafitte]

Well, my immediate question is what does the market dictate? Are 30-A properties completely booked and are owners having to turn people away? From my experience checking availability calendars for vacation rentals in SoWal, I'm not seeing evidence that the demand is out of control.

On the other hand, I wonder about the wisdom of raising rental rates. If you would rather your property sit empty more often in order to get the right sort of renter, you have to ask yourself what that is going to do to your favorite local restaurant/coffee shop/retailer. If the number of summer visitors declines, it's going to hurt those local businesses.

 

[beachmouse]

Demand for vacation rentals is definitely up in recent years. But there's also been a ton of new construction that seems to have not only kept pace with that demand, but it may have gotten a wee bit ahead of it. It's not too long ago all of Watercolor was pine trees and scrub, and now it totally dwarfs Seaside.

It's that supply/demand curve that controls rental prices, and I see said curve as being more or less in equilibrium right now.

In that kind of market, an increase in homeowner carrying costs doesn't do anything to fundamentally change the demand curve. A higher rental price just shifts you to a point on the curve where there's less demand for your product. You only really get to shift those increased carrying costs to renters when the supply/demand equilibrium goes out of whack and allows for readjustment, and right now there are no signs that it has.

 

[PTWizard]

In my opinion, rental demand for beach front properties as well as properties within easy walking distance to the beach is very high. I have raised my rates 8-10 percent each of the past 2 years and have more bookings earlier this year than ever. However, I also made a significant investment (more than 80K) in refurbishing an already nice property 2 years ago.

The only resistance I am seeing is during the peak season. Most beach rental properties are already priced 40-50% higher in June & July than in late August or September and 100-125% higher than in November through February. Next year I'm contemplating raising my rates only about 2% during the peak season and 6-8% during the rest of the year. This year March, April, May, August and September booked up very fast but I've still got a couple of open weeks in July. For what it's worth.

 

[Pirate]

I increased my rates on gulf front by 10 percent this January and am booked over 30 weeks already in 2 properties out of the next 52 weeks. The property I have off the beach cannot be increased because it rents very poorly in comparison.

 

[SHELLY]

I increased my rates on gulf front by 10 percent this January and am booked over 30 weeks already in 2 properties out of the next 52 weeks. The property I have off the beach cannot be increased because it rents very poorly in comparison.

Pirate,

How long ago did you purchase your gulf front properties?


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[Pirate]

2001, 2002 and October 2006.

 

[SHELLY]

2001, 2002 and October 2006.

Would the 2001 & 2002 properties (with the 10% increases in rent) be the "two" that are booked for the 30 weeks out of 52?


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