Inflation In the Vacation Rental Industry

As we move into 2026, inflation continues to influence nearly every sector of the U.S. economy, and the vacation rental industry is no exception. While we work hard to keep costs down and protect your bottom line, several nationwide and regional economic pressures are reshaping the actual cost of operating and maintaining a rental property along the Alabama Gulf Coast. We want to keep you informed about what is driving these changes and why you may see increases in certain expenses.

Rising Labor Costs

Labor remains one of the most significant cost drivers in our industry. Wages for cleaners, maintenance professionals, contractors, and hospitality support staff have risen steadily due to a tight labor market, increased competition, and higher cost of living across the region. Because vacation rentals depend on reliable, high-quality service teams, these wage increases directly affect turnover fees, maintenance costs, and project labor.

Higher Prices for Supplies and Cleaning Products

From linens and paper goods to disinfectants and restocking items, supply costs continue to trend upward. Many of the products used in vacation rentals, both back-of-house and guest-facing, have increased noticeably over the past year due to manufacturing costs, shipping delays, and fuel-price fluctuations. Even small increases add up quickly across hundreds of cleans and guest stays.

Insurance Premiums at an All-Time High

Insurance has been one of the most challenging categories nationwide, especially in coastal communities. Property insurance and liability premiums have surged due to rising construction costs, severe-weather claim trends, and tightening underwriting standards among carriers. As a result, owners may see higher renewal rates, and certain vendors may pass along increases in general liability or workers’ comp costs.

Vendor & Contractor Pricing

Local vendors, from HVAC technicians to pool companies, are operating under the same inflationary pressures. Their materials, fuel, and labor have all gone up, resulting in higher service call fees, parts pricing, and annual maintenance contract costs. We remain committed to negotiating fair rates and advocating for your best interests, but these increases are industry-wide.

Why We’re Sharing This

Our goal is transparency. We want you to understand why you may see certain line items increase over the next year and what is driving these changes. None of this is arbitrary—these shifts reflect broader economic conditions that are affecting every property management and hospitality company in the country.

Despite these challenges, our focus remains the same: protecting your investment, maximizing your revenue, and managing your property with the highest level of care and professionalism. We will continue to:

• Monitor expenses closely

• Seek cost-saving opportunities wherever possible

• Vet vendors for quality and value

• Maintain open communication so you’re never surprised

As always, thank you for trusting us to care for your property. We’re here to answer any questions and help you navigate these changes with confidence.