By Rachel Kyler
People are changing the way they vacation and it?s evident in Walton County?s summer reservations.
According to the Walton County Tourist Development Council, bookings are down for the 2006 summer season.
This not necessarily due to lack of interest in South Walton beaches; April?s bed taxes were up more than 15 percent for this year. However, people are approaching vacation planning differently, said TDC Executive Director Kriss Titus.
?So much has changed,? she said.
As the XY generation and ?echo boomers? are entering the rental market, there are more people registering for vacations ?on the spot,? Titus said.
Busier schedules, uncertainty of vacation time and the advent of the Internet are causing people to schedule their vacations later.
?In today?s society, we?re more, ?What are we going to do tomorrow??? Titus said. ?It?s a lot more difficult for some people to schedule a year out.?
In addition, Titus said increased availability of rental properties allow people to wait longer because they are not as concerned with securing a place. Cost is no longer the predominate factor. Renters have become increasingly concerned with ?added value,? like bike rentals, fitness centers, etc., Titus said.
?It?s a very competitive market,? Titus said. ?It?s a lot easier (for consumers) to make decisions.?
Reports are also indicating that visitors are concerned about the shape of the beaches and the upcoming hurricane season.
In an effort to encourage earlier bookings, the TDC moved $500,000 in contingence funds for a summer ad campaign to improve collections in the upcoming season.
The new summer ad campaign, ?Our beaches are beautiful with great summer rates,? will focus on value and the beaches desirability.
Regional ads will be placed in the Wall Street Journal targeting the South Atlanta District, which includes a large portion of the South East, and the Texas District, which covers Texas, Louisiana, Arkansas, Oklahoma Kansas and part of New Mexico.
A strategic online campaign will target ?female family travel planners,? 35 to 54, with a household income in excess of $75,000 within South Walton?s top ten markets ? Atlanta, Nashville, Birmingham, Mobile, New Orleans, Memphis, Dallas, Huntsville, Montgomery and Tallahassee.
SallySallyBeach Fanatic654 postsJoined View profileMessageBeach Fanatic
SallyBeach Fanatic654 postsJoined View profileMessageBeach Fanatic10,012 views
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SheilaSheilaSoWal InsiderSnellville, GA., Seacrest/Seagrove as often as we 5,781 postsJoined View profileMessageSoWal Insider
SheilaSoWal InsiderSnellville, GA., Seacrest/Seagrove as often as we 5,781 postsJoined View profileMessageSoWal Insider:blink: We were going to go somewhere else and vacation instead of the beach but after cancelling decided after all that we still wanted to come to the beach no matter how it looked. We regretted cancelling! We decided we would not be happy vacationing anywhere else, despite the beach conditions. Granted we had a good time that one year in the Cajun part of Louisiana, and even though I wouldn't mind going back there, we cannot get past coming to the Panhandle to want to go anywhere else. I've heard some places will not give refunds to people who have to leave because of mandatory evacuation due to hurricanes. Is that true?
Depends on the place. If you are going someplace with a a website they normally have that information readily available on line. If not ask up front before you sign on the dotted line.
SGBSGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach Fanatic
SGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach FanaticYou 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 agree with what Donna had to say above. In addition, the only way to price a rental is to do it at a price that the market can bear and that will result in happy customers. You really can't come up with a price based on your expenses. Is our rental a profit making proposition? Not most of the time. The money we get in rental income covers our expenses, but we usually put in some type of major improvement each year which usually eats up any profit we might make. Some years there isn't a lot of maintenance, others there are. I know painting your house, such as Donna just did, and we did last year, can sure take a chunk of change. However, on paper, we have made a tidy profit in the appreciation of the house. (Location, location, location!) This appreciation is WAY more than any profit we could make. And, yes, SHELLY, we did buy before the big run up! Recent buyers certainly won't be able to cover their costs, but they can certainly offset a good part of it. Even with the recent downturn, the return on our money is much larger than it would have been if we had invested it in other ways. Also, I think in the long term our values will do very well. And as Paula is so eloquent in pointing out, we have a piece of paradise that we don't intend on ever selling. We're hoping to be able to hand down our little part of Old Seagrove to our children some day.
SGBSGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach Fanatic
SGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach Fanatic:blink: We were going to go somewhere else and vacation instead of the beach but after cancelling decided after all that we still wanted to come to the beach no matter how it looked. We regretted cancelling! We decided we would not be happy vacationing anywhere else, despite the beach conditions. Granted we had a good time that one year in the Cajun part of Louisiana, and even though I wouldn't mind going back there, we cannot get past coming to the Panhandle to want to go anywhere else. I've heard some places will not give refunds to people who have to leave because of mandatory evacuations, say because of hurricanes. Is that true?
We've been enjoying the beach all week and I have to say, hurricanes have never entered my mind. The beaches really look great and where we've been we haven't seen debris, just beautiful white sand.
All the rental companies that I know of will refund money if a mandatory evacuation order goes out. Nothing else should be acceptable. Ask the owner or company you're renting from what the policy is. The policy of what happens with the rentals in the weeks after a storm, if the storm has done damage, is probably the one that is harder to find out. I know that last year we had to discount many of our rentals after the storm due to the missing beach accesses. We also allowed a couple of cancellations.
Come on down! We need you to pick up the economy and you need to see our gorgeous beaches.
UnpluggedUnpluggedBeach Fanatic519 postsJoined View profileMessageBeach Fanatic
UnpluggedBeach Fanatic519 postsJoined View profileMessageBeach FanaticWe've been enjoying the beach all week and I have to say, hurricanes have never entered my mind. The beaches really look great and where we've been we haven't seen debris, just beautiful white sand.We offer our guests 100% full refund no questions asked. Do the right thing, and your guests will reward you with future visits and referrals. This should be obvious. Keep it simple and fair and good karma will come back to you.
All the rental companies that I know of will refund money if a mandatory evacuation order goes out. Nothing else should be acceptable. Ask the owner or company you're renting from what the policy is. The policy of what happens with the rentals in the weeks after a storm, if the storm has done damage, is probably the one that is harder to find out. I know that last year we had to discount many of our rentals after the storm due to the missing beach accesses. We also allowed a couple of cancellations.
Come on down! We need you to pick up the economy and you need to see our gorgeous beaches.
Lady DLady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal Insider
Lady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal InsiderSGB, we stay in Walton County at Inlet Beach. Not much beach on the lower part along the water to set your beach chairs out on. Probably not too bad though. I have pictures posted under the Members photo gallery of the area where we stay. Just have to go to my user id to view them. All of my pictures are titled Inlet Beach. Stairs to the walkover are gone. Man says he cannot rebuild it until the dunes are back but that is not the case entirely because the two beach houses down to the left of where we stay have new walkovers built without the dunes being present. I put several pictures on the photo gallery of near where we stay including the little love shack on the beach.
MangoMangoSoWal InsiderNew York/ Santa Rosa Beach9,699 postsJoined View profileMessageSoWal Insider
MangoSoWal InsiderNew York/ Santa Rosa Beach9,699 postsJoined View profileMessageSoWal Insider[QUOTE=Donna]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. _________________________________________________________________
I bought 2 townhomes 2 years ago, and I broke even on the 4 bedroom and almost broke even on the 2 bedroom. Put 20% down on each and have low 5% or so 30 year fixed on both of them. (Ok, I cheated and handled my own mortgages)
I gave away the 4 bedroom last year because we had transitions in our association, and had personal things to attend to, so I booked it fully early in the season. I did raise my rate this year , and I am on the Board and we spent money on exterior renovations as well and grounds, so I guess it did get eaten up, Unfortunately I did not get repeaters this year due to the problems we had last year. But this year, I have had everyone happy 😀 , and a few rolled over deposits for next year. I made a point to call each family when they arrive, my housekeeper leaves fresh Mangos :wub: on the table, and now they call or e-mail me when they get home thanking me for sharing the house. If I had to sell them now, I would be able to to make a profit. Not a huge one, but I wouldn't take a loss.
Oh, and my husband and I re-newed our vows on the beach for our 10 year wedding anniversary about 3 weeks after Hurricane Ivan. There was no place we would have rather been, or would have been more appropriate.
Even with the hurricanes, people seemed to get right back on the beach and on with their lives right afterward when it was safe to go back on beach.
A friend took pictures of the beach replenishment completed in SanDestin from one of the high rise condos- before and after shots, and there is a huge difference now. I think word will get out, and people will be less skittish and book earlier next year.
I bought 2 townhomes 2 years ago, and I broke even on the 4 bedroom and almost broke even on the 2 bedroom. Put 20% down on each and have low 5% or so 30 year fixed on both of them. (Ok, I cheated and handled my own mortgages)
I gave away the 4 bedroom last year because we had transitions in our association, and had personal things to attend to, so I booked it fully early in the season. I did raise my rate this year , and I am on the Board and we spent money on exterior renovations as well and grounds, so I guess it did get eaten up, Unfortunately I did not get repeaters this year due to the problems we had last year. But this year, I have had everyone happy 😀 , and a few rolled over deposits for next year. I made a point to call each family when they arrive, my housekeeper leaves fresh Mangos :wub: on the table, and now they call or e-mail me when they get home thanking me for sharing the house. If I had to sell them now, I would be able to to make a profit. Not a huge one, but I wouldn't take a loss.
Oh, and my husband and I re-newed our vows on the beach for our 10 year wedding anniversary about 3 weeks after Hurricane Ivan. There was no place we would have rather been, or would have been more appropriate.
Even with the hurricanes, people seemed to get right back on the beach and on with their lives right afterward when it was safe to go back on beach.
A friend took pictures of the beach replenishment completed in SanDestin from one of the high rise condos- before and after shots, and there is a huge difference now. I think word will get out, and people will be less skittish and book earlier next year.
SGBSGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach Fanatic
SGBBeach FanaticSouth Walton1,034 postsJoined View profileMessageBeach FanaticSGB, we stay in Walton County at Inlet Beach. Not much beach on the lower part along the water to set your beach chairs out on. Probably not too bad though. I have pictures posted under the Members photo gallery of the area where we stay. Just have to go to my user id to view them. All of my pictures are titled Inlet Beach. Stairs to the walkover are gone. Man says he cannot rebuild it until the dunes are back but that is not the case entirely because the two beach houses down to the left of where we stay have new walkovers built without the dunes being present. I put several pictures on the photo gallery of near where we stay including the little love shack on the beach.
I took a look at your photos and the beach does look a little thin there, but perhaps it has gotten better since those were taken. I have to admit I never make it that far east on the beach, so I can't give you any info there. Is the walkover near where you stay a public access? If so then the TDC should be able to tell you when it will be repaired. My impression is that almost all the public accesses have been repaired. Ours was repaired just in time for our summer season, thank goodness. If it's a private walkover, which it sounds like it is, then it's up to the owner to decide when/whether to replace it.
Also, tell your friend that goes to Sandestin that the beaches there are wider than they've been for years due to beach renourishment in that area. They are looking particularly good.
Lady DLady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal Insider
Lady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal InsiderYes, it is thin there. And it is a privately owned place and he keeps thinking the county is going to provide the sand and rebuild the dunes there and then he said he could redo the walkover. But since that is private there, he will be waiting until doomsday. We just walk right next door and use that walkover. He has ok'd it with the owner. If you are familiar with Walton Lakeshore Drive and Walton Magnolia Ln. across from the Spicy Noodle, that is where his place is and it is beachfront. I would tell my friend but she is already in Mobile tonight and will be there sometime tomorrow morning. It is amazing how wide the beach is around the Dan Russell Pier in PC Beach. I know some beach renourishment was done in PC Beach last year.
lindatatlindatatquirtyToo far from the beach (Chicago 'Burbs)2,813 postsJoined View profileMessagequirty
lindatatquirtyToo far from the beach (Chicago 'Burbs)2,813 postsJoined View profileMessagequirtyWhat's that phrase again, something like "a bad day at the beach is better than a good day"......anywhere else? I did a lot of walking up and down the beach last week and I could definitely see that some areas had been hit worse than others. But there's nowhere I'd have rather been - and can't wait to get back.
PaulaPaulaBeach FanaticMichigan but someday in SoWal as well3,747 postsJoined View profileMessageBeach Fanatic
PaulaBeach FanaticMichigan but someday in SoWal as well3,747 postsJoined View profileMessageBeach Fanatic"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 one of our cottages in 2003 and the other in 2004 (with conventional financing) and we are able to almost cover the cost of mortgage, taxes, insurance with rentals. The rentals don't cover the other monthly expenses or the initial investments we made in furnishings and equipment, though. However, the cottages have increased in value enough (even with the slow-down because we bought about 6 months before the prices peaked, so we're doing OK.) The hope and expectation, of course, is that we'll get more renters in the fall and winter to cover the rest of the expenses and the value of the properties will start going up again. We plan to hold onto these places anyway for the long-term (So, we're not desperate for values to go up again) because we love them :wub: and see them as places to spend many future years/decades with friends and family.
We bought one of our cottages in 2003 and the other in 2004 (with conventional financing) and we are able to almost cover the cost of mortgage, taxes, insurance with rentals. The rentals don't cover the other monthly expenses or the initial investments we made in furnishings and equipment, though. However, the cottages have increased in value enough (even with the slow-down because we bought about 6 months before the prices peaked, so we're doing OK.) The hope and expectation, of course, is that we'll get more renters in the fall and winter to cover the rest of the expenses and the value of the properties will start going up again. We plan to hold onto these places anyway for the long-term (So, we're not desperate for values to go up again) because we love them :wub: and see them as places to spend many future years/decades with friends and family.
SHELLYSHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal Insider
SHELLYSoWal Insider5,763 postsJoined View profileMessageSoWal InsiderThe hope and expectation, of course, is that we'll get more renters in the fall and winter to cover the rest of the expenses and the value of the properties will start going up again. We plan to hold onto these places anyway for the long-term (So, we're not desperate for values to go up again) because we love them :wub: and see them as places to spend many future years/decades with friends and family.
If the dollar continues to weaken against the Canadian "loonie" you may want to think about focusing your advertisements to folks in the "Great White North" for the upcoming fall/winter season. By that time of year, tapped-out American consumers from up North will be chosing between spending what they've got to either buy fuel oil to keep warm; put gas in the car; make the mortgage/HELOC payment; or buy the kids Christmas gifts.
spinDrAtlspinDrAtlBeach Fanatic367 postsJoined View profileMessageBeach Fanatic
The snowbirds that rent in our complex are retirees looking to get out of the cold, not pay a heating bill. Many of them have been coming for years and now have their own little 'community' in the winter.
Lady DLady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal Insider
Lady DSoWal InsiderMemphis, Tennessee, United States6,131 postsJoined View profileMessageSoWal Insider😀 I've talked to the man we rent from back several months ago but failed to ask him how that area of beach looks now. He did mention he still has no walkover though. I am hoping some sand has washed back up on that stretch helping it out some. Can't wait until the end of August.
KurtKurtAdminSoWal2,470 postsJoined View profileMessageAdmin
KurtAdminSoWal2,470 postsJoined View profileMessageAdminIn light of the recent discussion about 2007 Summer rentals I thought some might like looking back at this thread.
PaulaPaulaBeach FanaticMichigan but someday in SoWal as well3,747 postsJoined View profileMessageBeach Fanatic
PaulaBeach FanaticMichigan but someday in SoWal as well3,747 postsJoined View profileMessageBeach Fanatic"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 one of our cottages in 2003 and the other in 2004 (with conventional financing) and we are able to almost cover the cost of mortgage, taxes, insurance with rentals. The rentals don't cover the other monthly expenses or the initial investments we made in furnishings and equipment, though. However, the cottages have increased in value enough (even with the slow-down because we bought about 6 months before the prices peaked, so we're doing OK.) The hope and expectation, of course, is that we'll get more renters in the fall and winter to cover the rest of the expenses and the value of the properties will start going up again. We plan to hold onto these places anyway for the long-term (So, we're not desperate for values to go up again) because we love them :wub: and see them as places to spend many future years/decades with friends and family.
Good idea to revisit this Kurt. I saw my own post from a year ago and here's what happened since: We still love our cottages and SoWal and have made more memories :wub:; the cottages in our community are starting to sell again and have found a price that works (and made money for people who bought initially and early on, but those who bought more recently will have to wait a while); we had one winter renter in one cottage for 3 months last year and have both cottages booked with winter renters this year (they're getting it for a song but it pays the bills and pays some of the bills - and I'm glad the winter renters will be happy with the good deal they got); we had about the same number of renters for spring/summer, with fewer so far booked for fall; we haven't raised our rental rates in 3 years; I do spend quite a bit of time managing the cottages together with the management company -- e.g., marketing, cleaning, staying up on repairs, etc.; Not having hurricanes for a few years has been a big help - beach is nice and sandy now (though the sand comes and goes and I don't worry about it any more and just trust in Mother Nature); my accountant said the cottages increased in value about 8% per year - which isn't bad if one has a balanced portfolio; The second cottage wasn't as great an investment as the first cottage, but it sure has been great to have for parties with friends and family (I hope to just pass the cottages on to the kids someday anyway and hope that having fun in them now will keep bringing them back to the cottages with their own families over the years); I still have no regrets and am thankful daily for having a little piece of sunshine and lots of friends in SoWal (I'm especially thankful every winter when I think "Someday winters will be spent in South Walton...)"
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