Vacation rentals can help you save in big cities

If you think that a vacation rental means a condo on Maui, a cottage in Wisconsin, a villa in the Caribbean, or a farmhouse in Tuscany, think again. A short-term apartment rental can be a very attractive alternative to a hotel when you want to stay in the center of a big city such as Boston, Chicago, London, New York, or San Francisco.

City or country, a rental almost always enjoys some distinct advantages over a conventional hotel:

• Extra space and comfort: In a one-bedroom apartment, a couple can spread out much more comfortably than in a hotel, and a two-bedroom apartment can comfortably accommodate two couples with plenty of living space. A comfortably furnished living area, separate from the sleeping area, is a big plus if you plan to spend a significant amount of the day lounging in your accommodation.
• Lower per-person cost: A couple can cut hotel costs in half by sharing a one-bedroom unit with another couple provided one couple sleeps in the sofa-bed usually found in the living area, or they can knock 33 percent off by sharing a two-bedroom apartment among three couples. Even without sleeping in the living area, two couples can usually share a two-bedroom apartment for less than they'd pay for two separate hotel rooms.
• Lower meal costs: You can cut quite a bit out of your travel budget by fixing your own breakfasts and by fixing at least some of your lunches and dinners in the apartment's kitchen. These days, a good breakfast in midtown Manhattan can easily set you back $10 a person or more.

Of course, vacation rentals have some drawbacks, too. Usually, they provide no daily housekeeping, although you can sometimes arrange it by paying extra. You often have to rent for a full week, although a sizable minority allows daily rentals. You usually have to prepay, in full, and cancellation penalties can be substantial. You have to clean up before you leave, or, again, pay extra to have it done. You usually get no front-desk hotel service. And although they may be far more comfortable, rentals are most competitive when the alternative is a first-class or deluxe hotel. They're seldom less expensive than the cheapest budget hotel accommodations.

Nevertheless, a rental can be a good deal, especially in cities such as New York and London where first-class and deluxe hotels have become obscenely expensive. In New York, for example, Metro-Home is featuring summer rentals through Labor Day with rates starting at $179 a night—about half of what you pay for a superior first-class hotel these days. This New York specialist agency also offers "concierge service" to help rental clients arrange theater tickets, restaurant reservations and such. Another New York specialist, Gamut Realty lists rentals starting at around $125 a night for a studio.

In London, Coach House Vacation Rentals lists a bunch of studios and one-bedroom units for under $200 per night; two-bedroom units at around $250 per night. Another London specialist rental agency, Home From Home, posts similar deals.

My "favorites" file includes a bunch of online agencies that specialize in Paris, including Chez Vous, Home-Rental-Finder, France for Rent, Locaflat, Panache, and Paris Sejour Reservation.

You can find attractive short-term rentals in just about any city you'd care to visit. The big worldwide specialist sites such as Vacation Rentals by Owner and the WVR Group of nine separate sites list rentals throughout the world, and dozens of smaller sites specialize in all or part of the U.S. and Europe. In addition, some airlines and tour operators offer "self catering" apartment accommodations as an alternative to hotels in their packages.

Disclaimer: In this and other reports, I discuss websites that post what appear to be attractive listings. Although I'm happy to identify them, I can't personally vouch for them. Whenever you deal with an online agency you don't know, take the usual precautions, including buying with a credit card.