The seemingly unstoppable growth that the vacation rental industry has shown during the decade of the 21st century has begun to show signs of slowing. Since at least 2004, the growth rate of the vacation rental industry has been increasing in leaps and bounds. An increasing number of vacation rental listing sites began to emerge, and owners began to empower themselves by marketing and managing their units on their own. News articles were constantly being written, extolling the growth of vacation rentals as a business as seemingly never-ending. But as this last economic recession has shown, there are some serious issues looming for the vacation rental industry on the whole.

The problem, you see, is that homeowners are now so desperate to rent out their homes that they are doing just about everything they can to get renters into their units. Craigslist advertisements state ridiculous prices of $100, $75, even $50 a night rental rates for entire homes! Why in the world would a home owner even want to open their private residence up to complete strangers for such rates? The wear and tear alone on their unit makes this a complete waste of time and in fact a terrible decision.

By dramatically reducing the price points on their vacation rentals, homeowners are eliminating the long-term value of their home as a short-term income producing property. Additionally, it makes it much harder to turn a profit in the future once the US economy turns the corner. This is a dangerous practice, especially within a deregulated emerging market such as vacation rentals. With no authority to actively oversee the dealings and transactions that take place between homeowners and clients, the industry on a whole is in serious danger of losing the legitimacy that it precariously holds.

Travelers today are getting spoiled. Because they can rent out a decent hotel for $50/night, they expect the same type of service when staying at a vacation rental. But why should they even receive this, and what is guaranteeing this result? The answer is absolutely nothing. In fact, the adage "you get what you pay for" is probably the most accurate. "Cheap" doesn't necessarily mean "value", although an increasing number of Americans simply do not understand this. Bottom line - the consumer is getting ridiculous in their demands and individual homeowners are only perpetuating the problem by their uneducated price points.

Feel like paying cash? Ever try and get money back from a Pay Pal transaction? This is what you risk when dealing with an individual owner directly from vacation rental listing sites. When researching vacation rental companies, be sure to ask how long they have been in business, their payment terms and policies, as well as how secure their payment transactions are. Most can offer you virtually any type of payment method that you desire, so the ball is in your court and you are in control. A professional vacation rental service is just that - professional. Most are licensed real estate brokers, have insurance, and have been in business for quite a while.

Without the open interaction between all of parties, renting a vacation rental from anyone other than a reputable online company or a property manger is risky business. Until the formalization of the industry re-occurs and the wild west attitudes of the individual homeowners cease, the vacation rental industry is in danger of losing value.