Short-term Vacation Rentals:modeling rental incom

Comments

3 comments

  • Avatar
    IMPLAN Forum
    Hello, Since you are working with gross rental values you will want to put these values through a standard Industry Sector in IMPLAN. This is because there are costs of operating and maintaining the vacation homes as well as profits. 517 is actually associated to private Household services, so this would be looking at the impacts of services such as home cleaning services, cooks etc. that are not working as part of services company but employed directly by a household. Although 500 does includes a variety of other service descriptions, it is likely the best match. If you do have concerns or information about how your spending pattern or Output per Worker, and Labor Income per worker values differ you can certainly make these adjustments in the software. You can see what expenditures are associated to the spending pattern via the Activity Options>Import> Industry Spending Pattern or via the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab. You could also classify it with apartment rentals under 440. Another alternative, if you have the data to split the income from the expenditures outside the data set would be to use the spending pattern for home-ownership along with a Labor Income Change. If you want to explore any of these latter options, please let us know and we can certainly provide you with more guidance. Hopefully this helps --Implan Support Staff
    0
    Comment actions Permalink
  • Avatar
    Alex Lantsberg
    don't forget to subtract. while i don't think it's a 1:1 relationship I think its fair to say that there MAY be reduced hotel revenues and the such.
    0
    Comment actions Permalink
  • Avatar
    IMPLAN Forum
    Alex does bring up a valid point. There will likely be some ratio of competition for which you may want to consider a net analysis. A couple of options exist for attempting to examine this. You could reduce the value applied to the hotel Sector (if you using it for both) and just apply a smaller value of impact here. You can do this a series of ranges depending on how much pent up demand vs. how much competition you may estimate. So you could run a couple of analysis looking at 10% competition, 25% and 50% or ratios that seem appropriate for you. Ideally you would want to come up with the exact value, but we aren't aware of anywhere you can get that data. At the very least, if you do not want to do the net analysis or don't feel you have sufficient data, it should be noted in your report that there will be some level of competition with other related industries that was not examined in your report, but should be considered as a possible source for reducing the impact value estimate by this study.
    0
    Comment actions Permalink

Please sign in to leave a comment.