Should You Rent a Vacation Home or Stay in a Hotel?

Jun 15, 2016

MoneyLife100 Are you planning a trip in the coming months? If so, you’re among the 80 percent of Americans who expect to go on a summer vacation, according to an American Express survey. But your time away won’t come cheap. The survey found that people were expecting to spend just under $950 per person for their holidays. One of the highest costs you’ll pay will be your hotel room rate. There are other options available, according to the Pennsylvania Institute of Certified Public Accountants (PICPA), 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 you’re trying to avoid staying at a hotel, you have a wide range of choices – from a vacation house rented through a realtor to a home or apartment rented directly from the owner through an online site. It is important to be careful. 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 don’t meet expectations. Always check the disclaimers on any site you use, as well as information about whether posts have been verified and what kind of recourse you have if the rental doesn’t meet expectations. If reviews are not available on the site you’re 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 week’s stay at your home with a family who lives in another location that you want to visit. If you’re interested, there are online sites where you can list your own home and look for available places in areas you want to visit. Again, you’ll want to ask the other homeowner for referrals from previous exchanges, and both sides should 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 an agreement might include things like use of the homeowner’s 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 of money. 

Moving Right In

Many people are familiar with bed and breakfasts, but it’s 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. It’s 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. It’s 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 the legal parameters of their city and state.

Consult Your CPA

Looking for alternatives to a hotel stay while you’re on vacation is just one idea for lowering your expenses. For more great advice on all your financial questions, be sure to contact your local CPA. To find a CPA in Pennsylvania by location or area of expertise, ask family and friends for recommendations or use the PICPA CPA Locator

Original publication date: July 1, 2013

The Pennsylvania Institute of Certified Public Accountants (PICPA) is a premiere statewide association of more than 22,000 members working in public accounting, industry, government, and education. Founded in 1897, the PICPA is the second-oldest state CPA organization in the United States.

Money & Life Tips are a joint effort of the AICPA and the Pennsylvania Institute of Certified Public Accountants (PICPA), as part of the profession’s nationwide 360 Degrees of Financial Literacy program.

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