Competition for USA vacation rental home bookings will increase as investment property owners realize the value of asset utilization, and more vacation rental homes become available. Those looking to sell that second home may consider rent by owner revenue options rather than sell a home at a loss or minimal profit. As one example of the real estate market, Florida average property value depreciated 5% in 2007 and another 6% depreciation is expected by the end of 2008.

The market for USA vacation rental homes in 2008 has weakened with the economy. As reported before, the trend for USA tourists is last minute decisions to go on vacation, or just stay home. That will change as the economy improves. Vacation rental home property owners represent 25% of investment property owners offering their private second home for rent by owner. The 75% who do not rent use those homes a few weeks per year, or perhaps more if they allow friends or relatives to use the property for vacation. The asset utilization is extremely low at 20% when the home is occupied only 10 weeks annually.

Home owners from that 75% with investment property who do not rent may be looking to improve asset utilization and make the decision to generate vacation rental revenue sooner than later. The rent by owner vacation rental market can expect an increase in competition as more owners choose rent by owner as a means to offset costs.

Vacation rental home owners need to reevaluate market conditions and adjust how they promote their rent by owner property to remain competitive. One option is a free 6 month vacation rental listing on the RBO Vacation Ads website.

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