Typically, repeat renters of the homes and cabins on the islands of Maine rush to re-up for another summer by January or February-knowing well that the best places get snapped up quickly.
However, in these days of deep recession, as of early May, Maine’s summer rental business has been slammed by the same economic waves pounding the rest of the nation. This year, says Stephen Miller, owner of Vinalhaven Island Rentals, his business to date is down 50 percent-“right across the board, from cheapest to most expensive.”
Miller saw a steady rise in profits over the past eight years he’s owned this business. Over time, his rental list has grown to include 30 properties, renting weekly from $750 to $2,500; every year his 20-percent fee tallied higher and higher. And then came the recession. “Typically by the first of May, 90 percent of my bookings are done, but this year I only have 45-to-50-percent rented,” says Miller.
On Peaks Island, Kirk Goodhue, owner of Port Island Realty, says that while a high percentage of last year’s vacationers are coming back, more owners are putting their home on the rental market. “The demand is the same, but my supply has increased by 18 percent,” says Goodhue.
In business 28 years, Goodhue represents 80 properties, ranging in weekly rental rates from $600 to $3,300. Of his repeat clientele, 67-to-70 percent have signed contracts. And while some owners are “adamant” about keeping rates static, notes Goodhue, he’s also noticing a new trend: an increasing number of owners are finding it hard to justify letting their homes sit empty, making them more willing to negotiate prices this summer.
The current recession has motivated homeowners to reap more tax deductions and home-improvement funds. “More people are renting to supplement their incomes and justify having a second home,” says Goodhue. “More people need to rent their homes for financial reasons.”
Meanwhile, for many island homeowners who rent during the summer months, this income traditionally has been a dependable way to offset increasing property tax bills. On Vinalhaven, observes Miller, “A lot of people rent to pay taxes and this year they’re going to get whacked.”
Miller paints a picture of the family anguishing over this summer’s vacation. His routine, common throughout the islands: After arrangements have been agreed upon, Miller sends renters a contract that needs to be returned within two weeks, signed and sent with a half-down deposit. “In the past if these contracts were four-or-five days late, I’d call and the renter would apologize, explaining that they just forgot,” says Walker. “But this year I’ve have had seven or so people saying they’re sorry but they just can’t come-the job’s just too shaky.
“And that never happens,” says Miller.