Should you rent a vacation home or stay in a hotel?
Dollars & Sense
Are you planning a trip in the coming months? If so, youre among the 59 percent of Americans who expect to go on a summer vacation, according to an American Express survey. But your time away wont come cheap: The survey found that people were expecting to spend just less than $1,200 per person for their holidays.
One of the highest costs youll pay will likely be your hotel room rate. There are other options available, but be aware of the pitfalls associated with some of them.
Renting a Vacation Home
Instead of going with a hotel, nearly half of all respondents to a recent TripAdvisor survey have stayed, or plan to stay, in a vacation home. If youre trying to avoid staying at a hotel, you have a wide range of choices from a vacation house you might rent by the week through a realtor to a home or apartment you rent directly from the owner through an online site. Whats the downside? If you find a rental through a site that essentially functions as a message board allowing owners to post information that is not verified you run the risk of finding accommodations that dont meet expectations. Thats why its important to check disclaimers on any site you use, as well as information about whether whats posted has been verified and what kind of recourse you may have if the rental doesnt meet your expectations or is actually part of a scam. If reviews are not available on the site you are looking at to book the vacation home, ask the owner for recommendations from those who have stayed there in the past. Always check any contract carefully to ensure you are comfortable and that the terms of the deal meet your expectations. Finally, remember that if there is a problem and you end up wanting a full or partial refund, it will be easier to get it if you pay with a credit card rather than cash or a check.
Doing a House Swap
Another alternative is to trade a weeks stay at your home with a family who lives in another location that you want to visit. If youre interested, there are online sites where you can list your own home and look for available places in areas you want to visit. Again, youll want to ask the other homeowner for referrals from previous exchanges and have both sides sign a written agreement that sets forth the expectations and limitations, covering both your stay in their house and their stay in yours. Issues to cover in the agreement might include things like use of the homeowners car, expectations regarding pets and their care, and cleaning responsibilities. By taking advantage of a house swap, your expense for a place to stay should be no more than the relatively low-cost of a membership to a site that specializes in these exchanges, which could save you a significant amount.
Moving Right In
Many people are familiar with bed and breakfasts, but its also possible to find less formal arrangements in which people rent out spare rooms in their homes. Questions to ask in advance include whether you will have a private bath or kitchen privileges and whether there are pets or children in the home. Its generally best to book through a website that offers the chance for a refund if you find the room is not what you were promised. Its also important to make sure you thoroughly investigate potential hosts before committing and, ideally, find a place that offers online reviews or references so that you can be sure you are not compromising your comfort or safety. Additionally, confirm that the renters are acting within legal parameters for their city/state.
Dollars & Sense is a monthly column provided by the Oregon Society of CPAs