What do you look for when renting?

[sarahjk]

I agree Chrissy I do think that the villas in Orlando are good value and I am not saying that some are priced to high, John, all I was saying was that Blott shouldn't tar all cheaper villas with the same brush I have priced up some places other than Orlando such as California and others and can safely say that from the ones I priced up Orlando is CHEAP compared to them I think that some villas are priced up higher than others but that is why it is best too look around because there is something for every taste and we are not looking for a playstation in each room and games room just a good selection of TV channels heated pool in the winter and DVD player. We get a TV in each room as well but to tell you the truth we never use them far too much for us to do


Didn't mean to offend[msnembarrased]

Sarah

[floridadreamvilla.co.uk]

You did not offend - don't worry. I was just trying to point out that most owners do not make any money out of owning a villa and the ones that are priced higher are like that for a reason and not because the owner is making massive profits off the extra money they charge.

<blockquote id="quote" class="ffs">quote:Originally posted by sarahjk
I agree Chrissy I do think that the villas in Orlando are good value and I am not saying that some are priced to high, John, all I was saying was that Blott shouldn't tar all cheaper villas with the same brush I have priced up some places other than Orlando such as California and others and can safely say that from the ones I priced up Orlando is CHEAP compared to them I think that some villas are priced up higher than others but that is why it is best too look around because there is something for every taste and we are not looking for a playstation in each room and games room just a good selection of TV channels heated pool in the winter and DVD player. We get a TV in each room as well but to tell you the truth we never use them far too much for us to do


Didn't mean to offend

Sarah[msnembarrased]
[/quote]

[george]

Blott. If an owner has no mortgage then the only expences would be the rates,water, electric etc. They could then charge a lot less than people with a morgage and still offer the same product and invest on improvements. They may only want to cover there lower outgoings.<blockquote id="quote" class="ffs">quote:Originally posted by blott
Sorry, gotta disagree! Cheap usually does mean poor quality as the owners won't be receiving enough income to keep the place well maintained, buying replacements and improving the home.
[/quote]

[huckleberry house]

<blockquote id="quote" class="ffs">quote:Originally posted by george
Blott. If an owner has no morgage then the only expences would be the rates,water, electric etc. They could then charge a lot less than people with a morgage and still offer the same product and invest on improvements. They may only want to cover there lower outgoings.<blockquote id="quote" class="ffs">quote:Originally posted by blott
Sorry, gotta disagree! Cheap usually does mean poor quality as the owners won't be receiving enough income to keep the place well maintained, buying replacements and improving the home.
[/quote]
[/quote]


Having a mortgage or not having one shouldnt make any difference to the asking price for the home though. That would just be leaving money on the table if the rates achieved could be higher and the home is rented at less than market price.Most products made in business sell for much more than the costs, a CD could be sold for 50p but it doesnt becuase people will pay more. If an owner is foolish enough to rent for less than the cost that could be achieved then not only are they hurting their own pocket but they also serve to devalue the market and attract a different sort of guest than homes which charge a decent rent and can afford to maintain higher standards.

Lesley

[george]

Foolish or not (and I agree with you) there will be people who charge less but still offer a great product. We are all guilty of presumption.

[chrizzy100]

<blockquote id="quote" class="ffs">quote:Originally posted by george
Folish or not (and I agree with you) there will be people who charge less but still offer a great product. We are all guilty of presumption.
[/quote]

I would of gone ahead and rented cheaper because I have a very small home loan.....but mostly I think thats because new owners know no better when they first start....and make big booboos.....its not because they don't have a good product.....when you think about it....why should you rent cheaper because you have no loan.....rent for the same as everyone else and spend the extra money on making your house very rentable.....with all those extras people with a large home loan may not have....thats how I feel now after reading post from long time owners here......maybe I got it wrong again....but rental prices are very cheap as it it in Orlando.....its in no-ones interest to make them any lower.....just my 2 cents....

[blott]

<blockquote id="quote" class="ffs">quote:Originally posted by george
Blott. If an owner has no morgage then the only expences would be the rates,water, electric etc. They could then charge a lot less than people with a morgage and still offer the same product and invest on improvements. They may only want to cover there lower outgoings.<blockquote id="quote" class="ffs">quote:Originally posted by blott
Sorry, gotta disagree! Cheap usually does mean poor quality as the owners won't be receiving enough income to keep the place well maintained, buying replacements and improving the home.
[/quote]
[/quote]Sorry, I don't agree with that either! You have to take into account the capital investment so, if a home owner has no mortgage, then their capital investment is enormous (particularly with today's purchase prices). If the owners are just charging a rental that covers their utility bills, then they're not getting any return on their capital (I bet all of our guests have at least a savings account and get interest on their capital) and have nothing over to cover maintenance, repairs or improvements.

For instance, in a simple example, our pool timer has packed up. It's costing $875 to get a new one. If I were charging rental that just covered our utility bills, where would the money come from to pay for a new pool timer? In your scenario, I can't take it out of the rental money as that just covers the utilities. So, my only alternative is to pay it out of my pocket. So, not only would I not be receiving a return on my capital investment, I would also be paying out my own money. That would be financial disaster as I would then be paying for other people to have holidays in my home.

Every penny/cent (and more) is ploughed/plowed back into our home to keep it looking how we would wish it to be for our guests, to keep it well maintained, effect any repairs that are required (ie the pool timer at the moment) and make an ongoing round of replacements that we think are required or necessary. Our rental rates are currently very competitive (but they're not 'cheap' but neither are they 'dear') and we manage our home on this level without skimping on anything but, at the same time, not making a 'profit'. When I think what a similar home would rent for in other places like Spain, I sometimes think we must be mad!

[george]

Blott
I did say 'etc etc' in my original posting. No one in their wright mind would estimate there rental down to the last penny without having some fat on the bone to undertake improvements and repairs. Profit does not have to come out of the rentals what about the increasing value of the property? that is where true 'profit' is to be found.

[blott]

Er, any increasing value of the property doesn't arrive in your pocket until you sell it George! And what would this be if the property prices slumped as they did here in 1990s? [msnwink]

[george]

Most will sell at some time to either take the profits of re invest in other property. Some may use the added value in their property to by another without selling the original. It is the same the world over. No secret just the facts of property ownership.