Cape Cod has ranked among the top five places nationwide to rent a vacation home this summer.
Based on traveler inquiries made on HomeAway.com between February and April, the top five most popular summer travel destinations include Orlando, Fla.; New York, N.Y.; Cape Cod; Miami; and Myrtle Beach, S.C.
Second homeowners who rent their homes to travelers, on average, generate more than $35,000 in rental income each year, according to HomeAway Inc., an online vacation rental company.
On average, second homeowners are renting their properties to travelers 20 weeks a year, and the rental income generated is helping many owners offset mortgage and upkeep costs, according to a new report called the "HomeAway Vacation Rental Marketplace Report."
The HomeAway report found 38 percent of owners generate enough rental income to cover 75 percent to 100 percent of their mortgage. Nearly two-thirds (63 percent) of owners earn enough to cover at least 50 percent of their mortgage.
The report also ranked the top 10 destinations with the largest percent increase in traveler interest from Q1 2009 to Q1 2010. South Yarmouth ranked 7th after Telluride, Colo.; Marina del Rey, Calif.; New Orleans; West Hollywood, Calif.; Boca Raton, Fla.; and Cambridge, Md.
"Owning a vacation property is not just for older Americans or the affluent. Many owners are discovering they can offset the costs of the home by renting to travelers when they’re not using it themselves, and they’re having good success lining up renters by marketing their homes online," said Tom Kelly, real estate expert and author of "How a Second Home Can Be Your Best Investment." "The rental income they earn can go toward paying the mortgage, home insurance, utilities and general maintenance."
Despite the sluggish economy, second homeowners in these markets and throughout the country find that travelers are continuing to book stays, due in large part to the value afforded by a vacation home compared with a traditional hotel. Approximately 62 percent of second home owners report their bookings for this summer are about the same or higher than last summer.
This summer, fewer vacation homeowners are offering deals or discounts this summer (55 percent) compared with last summer (66 percent), the report found.
Given the success second homeowners have renting their homes to travelers, some are considering buying additional properties. Of the owners who cover 50 percent or more of their second home’s mortgage with rental income, 38 percent of them say they had considered buying an additional vacation home within the past year.
According to the HomeAway report, several markets around the country have seen significant increases in new vacation rental listings. For the fourth consecutive quarter, both New Orleans and Austin, Texas, appear in the top 10 destinations with the largest increase in new listings. Sunset Beach, N.C., retains its top position from the last quarter, and Telluride, Colo., drops a spot from second to third.
