In the rental market of holiday homes VRBO is an abbreviation for the term rental of accommodation by the owner. Nowadays, travel agencies are no longer the only source of booking a quality vacation. Most holiday apartments are privately owned, which means that all doors to the beach resort are owned by a separate natural or legal person. Before the advent of the internet, property owners relied on travel agencies or real estate companies to fill these rental properties with resorts. Property owners and travelers needed a direct medium for doing business. The Internet now allows property owners to be contacted directly by a prospective property user, eliminating the “middle man” and resulting in a good profit for both parties. However, this way of booking a vacation or business accommodation does not come without risk; but if someone is willing to take the risk, it could pay off with big savings.
Two decades ago, if you wanted to book a nice 2-bedroom holiday apartment on the beach, you would need to get out of the yellow pages and call a travel agency, which in turn would contact you or link you to a real estate company that managed just that type of property. The package is booked and paid for through a travel agent, who would receive a pre-determined percentage of the package price. The resort management firm, which is almost always a real estate company, would also receive a large percentage of revenue. This partnership has allowed these companies to keep control of the vacation rental market for years and to see exactly how the big management companies you find today could grow into mega corporations as they are.
As the internet became more readily available, websites began to pop up that allowed property owners to advertise their property for weekly rentals. These websites are very popular among regular tourist resorts and are getting bigger every year. Most property owners who use these listed websites have decided to terminate their contracts with property managers to save on management fees. This is a very important factor to consider when booking a property from the VRBO site. By the time you arrive, all negotiations are over; and if the property is not what you expected, there will be no reception or administrative number to call for correction. Your only source of contact will probably be a property owner who can live hundreds or thousands of miles from the actual apartment you booked. This is a cube that must be considered when booking an unmanaged property from the VRBO site.
Trust is key between both parties. The owner believes that his property will be taken care of properly, and the landlord believes that there will actually be a nice property there upon arrival. Assuming the property is exactly what is described in the ad and that all amenities and utilities are working properly, this arrangement could be a great opportunity for both parties. Cutting off the “middle man” will usually result in lower rental rates, while bringing the property owner a higher profit.