According to the Travel Industry of America’s (TIA) latest Travelers’ Use of the Internet study in 2003, over 42 million – or 2/3 of all online travel planners – booked travel using the Internet. Besides booking their flights through sites such as Expedia.com or Travelocity.com, many travelers also consider where they are going to stay.

While these sites cater to hotels and resort properties, many travelers prefer to stay in a home, especially on the beach or in the mountains. Conversely, many vacation rental owners don't know how to tap into the lucrative travel market.

What does this have to do with Realtors? Plenty. Realtors are likely to be the first ones asked by vacation property buyers about getting in front of renters, rental cash flows, and the largest expenses associated with vacation rentals - variable expenses associated with property management such as advertising and maintenance.

The National Association of Realtors found in 2003 that 37 percent of people shopping nationally for a second home planned to rent it, which is about double the percentage with rental aspirations just three years earlier. The problem for many is they don't want to manage their own vacation rentals, but if they turn those properties over to property managers, they can give up as much as 50 percent of the rental income in management fees.

"The U.S. is home to about 6.3 million vacation dwellings with the stock projected to grow by an average of 125,000 new units per year in the next decade," says Pat Lauer, cofounder of Vacation Property Services, LLC. "The U.S. vacation-home purchases hit a record 445,000 in 2003 and accounted for more than five percent of all home sales. Across the country, vacation home prices are rising faster than overall housing prices and they are up 6.5 percent from 2003."

Lauer's company consults with people who own second homes to stage their homes for photographs, and get them showcased on vacation rental Websites.

"We do specific geographic searches, and we go the top five search engines to see which vacation rental services are best for their property and narrow it down to the top 10," says Lauer, "and we drill down and look at specifics of the clients property like how many properties are competing with three bedrooms and three baths. On one Website there might be 10 homes like that, and on other sites, there may be 50."

The company also offers rental plans and organizers to help owners manage their own property.

"A lot of people who buy second homes aren't wealthy," points out Lauer. "They have a household income of about $85,900 and they are about 47 years old. They are looking for other means to round out their retirement portfolio, and they can pay for the home using cash from rental income. With what's happened on vacation rental Websites, it has become easy for owners to manage and advertise properties online."

Yet, many who would like to buy second homes are intimated about renting their property themselves.

"Where Realtors come into play is this offers them another option to suggest an investment," says Lauer. "As soon as they hear that a property management firm is taking up to 50 percent, they balk. And then there are a lot of add-ons when you use a property management company. They charge extra for sheetsand towels, and if they take a credit card, they have to split the charge and throw half the charge back to the owner. This gives the Realtor another option to suggest."

Lauer admits this new concept may be a tough sell for some Realtors. "My challenge is letting Realtors know there is an alternative."

Published: September 1, 2004

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.