Renting a Cabin for Increased Profits
Individual Cabin Owner Vs. Rental Management Companies
Cabin owners are looking for increased earnings now more than ever. Rental management companies are jousting for those same banknotes. There is a virtual tug of war between the standard 60/40 rental split between owners and managers.
This phenomenon is driving more and more owners to list 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 are succeeding in cornering the 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. Expedia now has a near monopoly on the online travel industry. You can still do soemthing about it.
Vacationers are not immune to the new controversial fees.
“Travelers looking for a place to stay will pay up to $499 a week extra 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 Rental Management Companies, and 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 mountain 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 management 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, Expedia and other connected 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 bypassing these greedy sites and purchasing directly from the locals in the Gatlinburg, Pigeon Forge and surrounding areas.