Renting a Cabin for Profit
Individual Cabin Owner Vs. Vacation Rental Companies
Cabin owners are looking for increased earnings now more than ever. Vacation rental companies are jousting for the same revenue. There is a virtual tug of war between the standard 60/40 rental split that’s shared between cabin owners and vacation rental managers.
This phenomenon is driving more and more owners to rent their cabins themselves on third party websites. But in a surprising twist, those third party websites are forcing themselves into what is only a two party tug of war. War costs money, and all parties are having to pay up.
These predatory websites like Expedia, VRBO, TripAdvisor and more are succeeding in cornering the vacation rental market and dictating further increases of fees. They continue to gobble up vacation websites with what appears to be an endless supply of cash. Travel websites owned by Expedia has allowed them to create a near monopoly in the online travel industry. You can still do something about it, especially if you’re a traveler and want to actually save money!
Vacationers are not immune to the new controversial fees.
“Travelers looking for a place to stay will pay up to $499 a week more now that the sites have instituted a 4% to 9% service fee on all vacation rentals.” USAToday.com
These fees are in addition to the forced increase in fees to both Vacation Rental Companies, and the individual cabin owners.
Yes, even after paying the increased fees to list each of the rentals, the third party sites are now charging a large fee to individuals as well.
Cabin owners in Gatlinburg, Pigeon Forge and the Smoky Mountains area are turning towards marketing and renting their own properties, even if they have only one or two.
This split from the norm is also forcing some vacation rental companies to offer greater incentives to their rental programs, including guaranteed income programs.
A guaranteed income will come with risks and rewards.
The rental manager has to pay out a monthly fee to cabin owners that are on their guaranteed rental program. Manager’s have to pay up-even if rental sales hit rock bottom. A downside for a cabin owner is if the cabin is a good renter, the cabin owner cannot collect the extra revenues above their monthly agreement with the cabin company.
If cabin owners and rental management companies do not come together soon and find a suitable compromise, Expedia and other online vacation websites, will completely take over and dictate even greater fees.
Piddlin.com offers a service that will help knock down or offset some of these costs. The more cabin owners and management companies that join, the more they will not have to rely on these third party websites.
Vacationers will save hundreds of dollars by simply bypassing these greedy sites and purchasing directly from the local vacation rental company in the Gatlinburg, Pigeon Forge and surrounding areas.