'My House Is Your House'

House swapping, or trading homes with someone else for an agreed-upon period of time (usually at the same time), is gaining more visibility and popularity.
By: L.A. WINOKUR: WSJ.com
With the cost of travel skyrocketing, home exchanges are attracting more vacationers. Here's how they work.

Against the backdrop of a tough economy, one of the smartest and most affordable ways to start your next trip is to open the doors of your home to a stranger.

House swapping, or trading homes with someone else for an agreed-upon period of time (usually at the same time), is gaining more visibility and popularity. There's the economic appeal. (What's not to like about accommodations that are, for all intents and purposes, free?) But such exchanges also appeal to a growing number of travelers who enjoy the comforts of home and want to try their hand at living the way the locals do.

To learn more about the advantages - and possible pitfalls - in house swaps, we turned to Lois Sealey, who since 1985 has run Home Base Holidays, a membership-based swap service in London. A Canadian by birth, the 62-year-old Ms. Sealey became intrigued with house swaps years ago on a trip to Canada to visit family. At the time, she and her husband and children, as well as her parents, were given the chance to stay in someone else's house - an "idyllic" lakefront cottage, she recalls - for free.

That experience, Ms. Sealey says, helped convince her that "many people would like to enjoy a home-away-from-home holiday at no cost by swapping" properties.

We recently caught up with Ms. Sealey in London, via an email exchange. Here are edited excerpts from that electronic conversation:

Easy Now
THE WALL STREET JOURNAL: Why has house swapping become more popular? What's the appeal?

MS. SEALEY: There was a major leap in popularity, especially in the U.S., that coincided with the growth of the Internet. Before this time, home exchangers received two or three print directories a year and sent exchange offers by mail - making arranging an exchange a laborious and time-consuming process. Now, being able to join an agency, have an exchange listing published online instantly, and send exchange offers by email has increased the popularity of home swapping enormously.

Although the methods for arranging exchanges have changed radically in the past 10-plus years, the reasons for wanting to swap homes haven't changed all that much. Home exchange appeals to independent travelers. The most commonly cited reason for taking part is the desire to get away from resorts and other tourists and get to know a real neighborhood and local people.

WSJ: You note that travelers age 50-plus are a good fit for swaps. Why is that?

MS. SEALEY: Many over-50s are empty nesters, no longer tied to taking time off only during school holidays. Many are also retired or semi-retired, making it easier to be flexible on dates and [the] length of exchange. They are able to consider exchanges at off-peak times when air fares are more reasonable, sometimes arranging both longer swaps and short breaks.

Many in the 50-plus age group still live in family-size homes. What a resource this is to use for swaps in their own countries and abroad. And, as location is usually the most important aspect of home swapping, those who have downsized, perhaps to a small apartment by the sea, will also find no shortage of offers to exchange.

Going Swapping: A Step-by-Step Guide
Lois Sealey offers these pointers for getting started on a home exchange.

First, join a suitable home agency. Look for a well-established private-membership site that charges a modest annual fee rather than "open" and "free" sites, so that you know all members are genuinely committed to arranging exchanges.

· Give careful thought to the information you include in your listing. Describe your home and local attractions and facilities, and give distances to the nearest large city, well-known locations and airports. Try to be as open as you possibly can on destinations, dates and the length of exchange. Add photos to your listing as soon as possible.

· Take the initiative and contact all members whose exchange offers look like good matches. Address each member by name, give your location and dates you can consider an exchange and whether you can be flexible. Personalize each message by mentioning what attracted you to the member's home. Respond to all offers you receive, and any questions members you contact ask, promptly. Offer to provide references.

Once you have found a match, keep in touch regularly, asking and responding to questions. Let any other members you are in contact with know as soon as you agree to an offer so that they aren't delayed in looking for other swap partners. It is never acceptable to agree to an exchange and cancel a firm commitment if you receive an offer you think is more attractive later on. Suggest an exchange at a later date.

· Check that your household insurance will remain valid while you have non-paying guests in your home. Check auto insurance if swapping cars.

· If your exchange involves air or train travel, agree to buy tickets at the same time, and exchange proof that tickets have been purchased. This is a reassurance to both parties since (barring an emergency) members are unlikely to cancel an exchange agreement after buying tickets.

· Keep in regular contact in the run-up to the exchange. Once you both feel that everything has been agreed to, compile a simple contract to share. Taking this step avoids the possibility of misunderstandings later on.

Ensure that you each know how to get from the airport to your homes; arrange where to pick up - or send in advance - house and car keys (if you have agreed to swap cars) and your local agent's contact details.

· Clean and tidy your home, leaving space in wardrobes and cupboards for guests to store their belongings. Clear out your refrigerator and leave some basic foodstuffs for your guests' use on arrival.

· Leave a folder with information on using appliances; house security procedures; local restaurant menus; train/bus timetables; brochures for attractions nearby; and useful local contact numbers and emergency numbers. The folder can be started several weeks before your first exchange and added to as you think of useful information. This can be kept and updated for future exchanges.

WSJ: Can you quantify this trend? How many people are doing it? Is it only for international travel?

MS. SEALEY: It's difficult to give more than a rough idea of how many people are swapping homes overall. A guesstimate would be 500,000 world-wide.

International exchanges are still the most popular choice. But there have been noticeable changes in the way members have used the service in the last year or two. More are interested in exchanges within their own countries. Also, there seems to be a trend toward having multiple shorter exchanges, including weekend breaks, rather than one lengthy exchange per year.

Likely Candidates
WSJ: Is there an ideal candidate for something like this?

MS. SEALEY: Probably the most important characteristics of "ideal" home-exchange candidates are that they are open to new experiences and independent travelers willing to take the time to make their own exchange and travel arrangements. They aren't overly "precious" about their home and belongings, welcoming the opportunities home swapping enables to experience different lifestyles and cultures. Conversely, someone who is overly house proud, wants their vacations completely arranged for them, hates change and would worry the whole time about their own home shouldn't consider home exchange.

WSJ: What do you say to people who can't get past the fear of dealing with strangers on a fairly intimate level? After all, you're going to be staying in their homes and they'll be in yours.

MS. SEALEY: It is only through regular correspondence and targeting members who appear most compatible that trust gradually develops on both sides.

Most people will correspond over several weeks - even months - asking as many questions as they want and sometimes exchanging references...with usually a phone call or two during the final preparations when exchange dates are getting close. Some members arrange an overlap in one of the homes - if there is space to do so - or meet briefly at the airport. This can be reassuring. But if meeting isn't practical before an exchange, the majority of exchangers will ask a friend who lives nearby, or a willing neighbor, to act as their agent by handing over keys and being available to answer any questions exchange guests may have while in the home.

WSJ: For many people, vacation is about getting away from it all. Can you truly get away from it all if you're living in someone else's home and, say, watering someone else's plants? And what about well-intentioned neighbors stopping by?

MS. SEALEY: When you are living in an exchange home, it is really no different from renting a house or apartment -- except that you will nearly always have many more facilities and comforts in a "real" home than in a vacation rental property. You don't need to worry about plant care if you really don't want the responsibility. Although many exchangers enjoy the opportunities to meet neighbors and friends of the family, if this would be intrusive, you can make this clear to your exchange partners in advance so they can warn overly friendly neighbors to respect your privacy.

WSJ: How much time does it typically take, from start to finish, to find an acceptable match?

MS. SEALEY: Much depends on how open you are on destinations you will consider; how flexible you can be on dates and length of exchange, and how popular your location is for exchanges. Experienced exchangers allow plenty of time - sometimes up to a year or more, depending on the destination - before the dates they want to exchange. Although some members do arrange exchanges very quickly -- and some have been known to agree to an offer within hours of joining - it can take a few weeks to find a suitable swap and then get to the point when both parties are ready to agree to go ahead with the exchange.

WSJ: What is the average length of time for a vacation swap?

MS. SEALEY: Swaps vary in length from two days to over a year. The average length for an international exchange is around two to three weeks. But this can vary a lot, depending on individual circumstances and average vacation periods in different countries.

Wrong Ideas
WSJ: What are some of the biggest misconceptions about house swapping?

MS. SEALEY: That you won't get to know the people you are swapping with; that you need to have a large, luxurious home to take part; that you have to arrange storage for all your clothes and other personal belongings; that no one will be interested in swapping to a remote or little-known location; and that you must swap "like" with "like."

WSJ: What causes swaps to fail?

MS. SEALEY: The vast majority of exchanges work out very well, and we receive few complaints. Those we do receive generally involve misunderstandings rather than negligence or maliciousness. Of these, the most common mismatch involves housekeeping standards. Although all exchangers should leave their homes clean and tidy, accommodations are lived-in homes, not five-star hotels, and standards will vary.

WSJ: If you open your home, what do you do with valuables, financial records and other personal papers?

MS. SEALEY: As soon as you agree to a home exchange, let your household insurers know that you will be having nonpaying guests in your home and the length of stay. Your home is almost certainly safer being occupied than left empty, but not all policies provide the same level of coverage. Most insurers won't cover you for burglary unless there is evidence of a break-in, so make sure that your exchange partners are aware of all procedures to keep your home secure -- as you will do in their home. If possible, don't leave small, expensive items like jewelry in your home. Check the terms of your insurance policy on accidental damage and agree mutually that the exchange guest will pay for any damages that aren't covered by insurance.

People with enough space in their homes to keep one room locked and out of bounds can store anything there that they would be concerned about, including confidential papers. Others will merely make...clear to their guests anything that they don't want touched.

Many home swappers allow use of their computers, but may password protect their own user accounts and set up a separate account for their guests' use. Others may offer broadband access for guests to use with their own laptops.

WSJ: What are the red flags to watch for?

MS. SEALEY: During early discussions with potential exchange partners, be wary if they evade answering important questions, don't add photos to their listings - or at least share some directly with you - or stop responding to messages without any explanation.

Avoid exchanging with anyone who appears arrogant, overly fussy or demanding. Home exchange is built on trust, mutual respect and tolerance. This isn't the travel option for prima donnas.