Considering marketing current home as VRBO - Opinions?

[Kevin C.]

Anyone have any experience marketing a VRBO (Vacation Rental By Owner) property?

We're considering marketing our current home as a VRBO.
We really enjoy the place, don't want to sell it, but really don't need it either.

All our kids are gone and it would make sense financially to downsize to something smaller and less expensive than where we are now.

But.... hate to give this place up because it's a one of a kind property in a very desirable area and I'm thinking it could do well as a VRBO.

In a nutshell, it's a 4 Bed, 3 Bath home on a little over 2 acres with:
Indoor Pool and Spa with Retractable Roof.
Separate but connected Diner / Malt Shop with Fridge, TV and Stereo.
Huge Game Room off said Diner.
The Game Room is actually a oversize 4 car garage, but it's fully finished, fully insulated, has it's own central heat and air and a full bathroom.

Prior owner used this portion of the garages as a showroom for his car collection, we use it as a huge Gameroom.

This gameroom has a 65" HD TV, Stereo system, Regulation Pool Table, Professional Quality Fooseball Table, Professional Quality Ping Pong Table and a low end Air Hockey table in it.

House also has a 3 car attached garage and 4 more garage bays in addition to the 4 bay garage area we use as a gameroom.

There is also a horse barn on the property, but we use that just for storage.

Home is near major highways, major shopping, dining, entertainment etc. in the city of Lucas which is North of Dallas.

I've seen VRBO homes in Allen that are in the mid to upper 100's per night that look like they are doing fine - I'm basing that on pulling up their calendar and seeing the days they have booked into the future. We're just east of Allen, so basically the same area.

My initial guess would be we could get get mid to upper 200's per night, possibly into the 300's per night for this place. If we could in fact get those numbers, and get say 60%+ utilization, the place would throw off some nice cash.

Wife and I would manage it ourselves.
When it was not booked, we'd probably stay there.

Those of you that have experience with VRBO, what do you think? Are we crazy, or do you think we'd have a good shot at making it work?

Here's a link to some pics from when we bought the property. Pics are fairly small, but big enough to give you an idea of the property. These pictures don't really do it justice, but they're all I have handy.

http://s1187.photobucket.com/albums/z396/TXCav/Home%20on%20Acreage/

[Scott Hubbard]

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VRBO can be a great way to bring in some income, but my experience says the results are usually mixed.

First, you need to consider who is your target market. The best way to zero in on a specific target group is to look at demographics relative to your specific location. Sounds like to me, your property wuld be best suited for a family. Does your home and surrounding area attract vacationer's? Is there a destination or specific attraction like a lake, amusement park, college, or some other reason people will come to your town or city?

Perhaps you have an large employer like Boeing or Raytheon which sometimes hires temporary contractors that need a place to live.

Anyway, you need to decide if your property (product) has a market. If not, then you may instead find more value as a long-term rental.

Second, what are the rates of comparable properties on VRBO? Price is as important these as anything else. All of the great amenities you have in your house may set you apart from your competition, but you will find people are more price conscious these days.

Also, too much competition may drive down prices and up vacancy.

Third, VRBO is a great site, but you need to spend a lot of time promoting your property properly. Your competion will be your floor, so do not be afraid to go the extra mile with details, photos, etc. Create something catchy like, "Great Family retreat equipped with a game room to keep the kids distracted while mom and dad can enjoy the serene surroundings" something cheezy like that.

You may also consider creating a separate website about your property. This might drive people not familiar with VRBO. Talk to agents as well. They can be a great help when they are dealing with a family relocation.

Lastly, test market your property. Do not commit too much time or money without first testing the waters. I have seen too many people buy property with the goal of renting to short-term tenants. Low expectations can be a blessing.

Good Luck!