Renting a home is a great, affordable option for a vacation, especially if you have a large family, or are traveling with a big group of friends. Just check online and you will see that you can rent a beautiful apartment or townhouse in the nicest parts of Manhattan for a week for $500/person (or less). Try finding a hotel room for that price! And staying in someone's home means you have the added advantage of more space (living room, kitchen, sometimes a garden, balcony or patio), something you pay dearly for at hotels in major cities. Below are some ideas to make your vacation even more affordable.

1. Travel off season. I understand that you don't want to be on a beach during a hurricane or snowstorm, but even going a little bit off peak times can save you quite a bit of money. On the French Riviera for example, you can find prices in October almost half of what they were in August. The weather is still great, and as an added benefit, the crowds are gone, and the locals are less stressed. Prices in restaurants and shops also tend to drop once the tourist season is over.

2. Travel to places where your currency is strong. A few years ago, the US dollar went a long way in Sweden. Not anymore: it's worth almost half today of what it was in 2002. Do your research and compare exchange rates. Some very attractive vacation areas where the dollar still is strong (in September 2008) are Argentina, South Africa, Vietnam, and everybody's eco-favorite, Costa Rica.

3. Look for last minute deals. If you are flexible with your time and can travel on short notice, last minute vacation rentals can be a great deal. I just did a quick Internet search and found an oceanfront mansion in the Florida Keys for $1,000 less/week than the normal rate.

4. Rent directly from the owner when possible. Since management companies charge owners to rent their properties (and the owner has to recoup that cost, which most often results in higher rental rates) you can get a cheaper rate by renting directly from the owner. I think it's nice to get a chance to talk to the person who actually owns the house, too.

5. Look for places where the inventory exceeds the demand. The building boom in the past few years combined with a slowing real estate market and economy has resulted in a lot of inventory, and the chance to negotiate a lower rate. Most owners would rather rent their vacation home out for a little bit less than not at all. In the US, Florida is the clear leader when it comes to the highest number of vacation homes, followed by California and New York.