Low summer 2006 bookings, TDC to increase advertising

[DBOldford]

Our house is as booked as in any previous year, which we are thankful for and attribute to two things. First, many people come back year after year and I think they think of Conch Out as their own place at Grayton. Second, however, we have purposely not increased our rental rate by a large amount. We figure the loss of even one rental week during the prime season does not translate into the difference in the larger scheme of things.

I also notice we have a few brand new bookings for late August and September as of late, so maybe people are exhaling and looking forward to a wonderful time on the beaches of South Walton!
Chicken Little was not right!

 

[Sheila]

Our house is as booked as in any previous year, which we are thankful for and attribute to two things. First, many people come back year after year and I think they think of Conch Out as their own place at Grayton. Second, however, we have purposely not increased our rental rate by a large amount. We figure the loss of even one rental week during the prime season does not translate into the difference in the larger scheme of things.

I also notice we have a few brand new bookings for late August and September as of late, so maybe people are exhaling and looking forward to a wonderful time on the beaches of South Walton!
Chicken Little was not right!

Amen Donna, to all of the above!

 

[SGB]

Our house is as booked as in any previous year, which we are thankful for and attribute to two things. First, many people come back year after year and I think they think of Conch Out as their own place at Grayton. Second, however, we have purposely not increased our rental rate by a large amount. We figure the loss of even one rental week during the prime season does not translate into the difference in the larger scheme of things.

I also notice we have a few brand new bookings for late August and September as of late, so maybe people are exhaling and looking forward to a wonderful time on the beaches of South Walton!
Chicken Little was not right!

Our experience is similar to Donna's for this year. Our bookings are actually up a bit over last year. In fact, if a hurricane doesn't show up, I think this will be our best year ever. We've changed a number of things this year, so I'm not sure what to attribute our good fortune to. We changed our management company to a much smaller one and they've brought in about half our rentals. So far, we think they are fabulous. We added free high speed internet for all those that have to access SoWal.com while on vacation. We stayed on VRBO, but also now advertise on vacationrentals.com. (Of course, we have a VT by Kurt and we're listed on all his web sites, and have been since we started renting out our house. In my opinion, with today's market, you have to have that VT!) As Donna did, we kept our final price to the guest about the same as last year. We wanted to keep our house accessible to past guests, who we love to keep happy, and we were worried about the affect the hurricanes and more rental competition in the area might have. Like many people, we've noticed that people are booking later, so we were nervous for a while, but it's all working out. We're also experiencing a recent flurry of activity with August/September bookings. Based on our small experience, we're hoping that we have lots of visitors, and all the businesses along 30A will have a great year and flourish.

 

[SHELLY]

As Donna did, we kept our final price to the guest about the same as last year. We wanted to keep our house accessible to past guests, who we love to keep happy, and we were worried about the affect the hurricanes and more rental competition in the area might have.

You and Donna know you are successful because you know how important it is to your bottom line to keep your return customers happy even if you have to tighten up your profit margins a smidge. I'm also assuming that these properties were not purchased in the last 2 years.

Rentals purchased at last year's prices, and whose owners are attempting to make them cashflow positive, are going to sit empty most of the season and beyond.

 

[joho]

Resort Quest have signs running along 30A in front of Gulf Place
"Walk in's Welcome"
Does that tell anyone anything?

 

[Kurt]

Resort Quest have signs running along 30A in front of Gulf Place
"Walk in's Welcome"
Does that tell anyone anything?

That they are breaking the law?

 

[Kurt]

You and Donna know you are successful because you know how important it is to your bottom line to keep your return customers happy even if you have to tighten up your profit margins a smidge. I'm also assuming that these properties were not purchased in the last 2 years.

Rentals purchased at last year's prices, and whose owners are attempting to make them cashflow positive, are going to sit empty most of the season and beyond.

I thought almost all rentals bought in the last couple of years are nowhere near positive, at normal financing.

 

[DBOldford]

I would be surprised if any home purchased in the last four years was showing even a small net profit if financed conventionally. We bought a larger house (appreciably higher rent in these houses), put 20% down and financed the remainder in a tool that allows an option for paying the interest only. All this at an all-time low fixed interest rate of 6.25% on a jumbo, too. We wouldn't touch an interest only loan with the proverbial 10-ft. pole on our primary residence, but property value has appreciated enough that it isn't an issue at SoWal. The ability to show a break-even situation with itsey-bitsey profit allows us to take the tax advantage now, as opposed to waiting until we sell the house in the future.

But my point is that even with the right purchase date, an excellent rental history and many repeat renters, and a rock bottom financing option, it is almost impossible to achieve this. People who expect their homes to pay for themselves on the basis of rentals are in bad need of a reality check.

 

[Lady D]

No need to be sarcastic people! A woman I work with left today with her husband to come to Sandestin Resort. Last year her vacation was delayed because of the damage from the hurricane. She and her husband did not get to get in their rental place at the Villages at Baytown until a week and a half after they were supposed to be there because of damage. And there were pictures of refrigerators on the beach, driftwood, and other things and these pics were last year. Stuff scattered all through Sandestin Resort. I am sure maybe the beaches now are ok where you guys are but where we stay the beach was half gone and the water was not clear the first 2 or 3 days we were there last year. And I am sure half the beach still is gone! The hurricanes probably turned people off to vacationing there in anticipation of the same thing occurring this year.

 

[Mermaid]

No need to be sarcastic people! A woman I work with left today with her husband to come to Sandestin Resort. Last year her vacation was delayed because of the damage from the hurricane. She and her husband did not get to get in their rental place at the Villages at Baytown until a week and a half after they were supposed to be there because of damage. And there were pictures of refrigerators on the beach, driftwood, and other things and these pics were last year. Stuff scattered all through Sandestin Resort. I am sure maybe the beaches now are ok where you guys are but where we stay the beach was half gone and the water was not clear the first 2 or 3 days we were there last year. And I am sure half the beach still is gone! The hurricanes probably turned people off to vacationing there in anticipation of the same thing occurring this year.

yeah, things like hurricanes are what separate the mice from the men. ;-)