thedesertsun.com | Property rentals gain ground online

thedesertsun.com

By Elia Powers
The Desert Sun
November 3, 2004

--------------------------------------------------------------------------------
COACHELLA VALLEY -- Whether you’re a local property owner, a budding entrepreneur or a desert vacationer in the market to rent, it’s likely your informational searches start with the Web.

In the tourism-rich Coachella Valley, where peak season translates to high volumes of housing supply and demand, rental industry experts agree: Online transactionsreign supreme.

And the cycle of business has forever changed, to the delight of consumers like Peter Tomashevski.

For the past 10 years, the 44-year-old architect from Los Angeles has arranged a Thanksgiving family vacation in the desert.

As he’s made a tradition of doing, Tomashevski put off booking this year’s house until the last minute.

In past years, that would result in a hurried, two-hour road trip to the desert to scout property.

But with the current technology, that isn’t necessary.

Less than 24 hours after beginning his online property search earlier this month, Tomashevski had taken a photo tour of a house, found the dates of availability and finalized the deal.

"Doing this online is the only way to go," he said.

From static to real-time

Many desert-area renters have joined Tomashevski in conducting the majority of their business online. Nationwide, a swelling interest in online property rentals is evident in the explosion of Internet marketplace companies such as San Francisco-based Craigslist, which is free for users to browse.

For rental companies, the major catalyst has been the switch from "static" Web pages to "real-time" interactive sites.

What began as a place to display exterior property photos and frequently asked questions now is a sophisticated system where online users can guide themselves through the booking process.

Online options include virtual tours, price-range listings and up-to-the-minute availability information.

McLean Company Rentals owner Michael McLean said real-time booking began appearing on rental Web sites about five years ago. He said it’s an invaluable tool for his industry, because properties are rarely uniform and consumers crave visual details.

By the numbers

McLean said his company’s business is up more than 25 percent this year, a figure he largely attributes to increasing online presence -- the company recently revamped its Web site. McLean said more than 90 percent of his business is generated from the Internet.

It’s a model that has gained acceptance throughout the Valley.

"If you have a great Web presence, you’ll do well in this industry," said Daniel Watson, general manager of the Palm Springs Rental Agency. "It’s an incredible market."

Watson said renting a short- or long-term property, a process that used to involve multiple mailings, responses and conversations over a two-week period, now can take as little as 10 minutes to complete.

Everyone in the pool

Jim Dowler, general manager of Palm Spring’s The Rental Connection, said he has used a company Web site since 1997.

Dowler said the increasing online presence has made the industry more competitive.

"Because of the Internet, both the supply of homes and the demand for vacation rentals have increased," said Rob Kincaid, partner of Vacation Palm Springs, a company that sees more than 50 percent of business originate from its Web site.

McLean said he has noticed an increase in small operations he calls "For Rent By Owner," which are part-time businesses usually run by individuals who are trying to rent their own properties online.

It’s a viable option for desert property owners who have Web management skills and need to conduct business from afar.

But both McLean and Dowler said they have seen many of these Web sites struggle, mainly because consumers don’t feel they’re getting a product guarantee.

A consumers’ market

Although Tomashevski said evaluating properties online is sometimes difficult, he said it is still an asset for desert visitors who cannot see the property in person.

And according to Gary Sherwin, vice president of marketing for the Palm Springs Desert Convention and Visitors Authority, the Internet has created a culture of "rate transparency" where renters can easily spot bad deals.

"It’s put more control of purchasing in consumers," Sherwin said. "People are checking multiple sources now."

Too much information?

Dowler said information posted on property Web sites is a positive trend for the consumer. But he warns of potential problems.

"The Web is a double-edged sword," Dowler said. "I’ve seen people use it in ways that gives too much information."

He said that in an attempt to attract customers, owners list furnishings such as flat-screen televisions, which makes vandalism a potential problem.

But for an expanding industry that quickly reacts to changes in technology, it’s all part of growing pains.