So you’ve decided you want to take the ultimate adventure in your vacation rental business and plan an overseas trade show.
Before you sign up and spend money on your booth you need a plan. Doing this well will position you for ultimate success in a sea of property pushers!
Overseas property shows are not for the lone rangers - you will need a small army to help you pull this off. As a rule of thumb, no less than three people for a small show and 4-5 people if it’s a large show.
Everyone has a job, and your goal is to cover as much ground and talk to ask many people as possible. You’ll have seen restaurants where one minute they’re dead, and then the next there is a line out the front door - it’s kind of like that.
The more people around your booth, the more want to come and see what the fuss is all about so you need enough people to cover all of this.
And, don’t forget the setup, tear...
It’s no surprise to see the most recent NAR report on Investment and Vacation home sales because I’ve been living in the middle of it all, and still am.
In the past 10 years, vacation rentals have gone from being a luxurious purchase in exclusive areas only the elite could afford, to be almost as common a purchase, like a new car or boat.
So, if you’re one of the agents who hasn’t been tuning into this market then you’re missing out on boat-loads of commissions that your competitors are happy to keep in their pockets.
And why wouldn’t they? The vacation rental niche is such a small and exclusive niche made up of maybe 5% of the licensed sales agents in the country, yet they are the ones closing 90% of the sales.
You can imagine how much money stays within that niche, and these few agents are perfectly happy with you not knowing about it.
Any agent who is capitalizing on this incredibly fast growing real estate niche knows...
One of the things I love about the vacation rental industry is networking. I have met so many amazing people from all over the world and a good portion of my business now comes from referrals from those people.
In the early years of my vacation rental real estate career, I didn’t see it necessary to network with agents across the globe. I honestly thought it was a huge waste of time - after all, how many agents do you know that genuinely enjoy working with other agents?
You hear them say stuff all the time like:
“I can’t stand agents, they’re all flakes” or “What is wrong with these listing agents, they never pick up the phone. Don’t they want to sell their listing?”
The industry is generally divided and somewhat anti-social.
In the vacation rental niche, it’s quite the opposite. The more social you can be and the more agents you connect with, the larger your chances of getting more referrals, both locally and...
Airbnb has changed the way investors look at short-term rental prospects. There can be an immediate and substantial monthly return offsetting finance charges and creating positive cash-flow from the get-go.
However there is a downside, and would-be investors need the knowledge to balance the attraction of a good ROI with the associated risks of the short-term rental model.
Income properties have traditionally been bought with a residential rental in mind. Essentially a hands-off operation, they require minimal attention apart from maintenance issues, and income is generally guaranteed for set lease periods. Short-term rental, on the other hand, is unpredictable in terms of occupancy, needs close attention to meet the needs of guests, but has the potential for high returns.
Let’s have a look at these differences in a little more detail.
Residential tenants have completely different needs than short-term or vacation rental...
The vacation rental market is in a period of massive growth. More vacation homes are being purchased; more owners are planning on renting, and more travelers are finding that this mode of accommodation fits their needs better than a hotel or resort.
This surge in supply and demand is demonstrated by the growth in online travel agencies such as Airbnb, HomeAway, VRBO, and Booking.com.
Factor in the upsurge in urban short-term rentals as the massive success of Airbnb shows and you have a market that has exploded far beyond traditional vacation destinations.
This all sounds exciting, yet the evolution of vacation rentals has brought with it many issues involving regulations and restrictions. From outright bans and limits on occupancy periods to tougher licensing laws and requirement for permits, there is a growing movement to legislate the industry, from the smallest community housing association to city zoning and bylaws.
This is a very different landscape than the one you...
There is a movement across America in city governance, municipalities, townships, homeowners associations, condo associations — in fact, anywhere that can impose legislation and regulation — and it’s growing. This expansion impacts second-home buyers everywhere, and it’s something real estate professionals need to understand.
The short-term rental market is no longer the domain of popular vacation destinations. The growth of Airbnb has sparked interest by investors in cities and towns across the nation, and just about anywhere that attracts inbound travelers for any reason, is now a target for short-term rental potential.
This highlights a concern in many areas — that the expansion in this market is contributing to a housing shortage because there is the potential that units traditionally rented long term may be turned over to this more lucrative income stream.
It also generates arguments between residents who want to maintain a sense of...
The questions that short-term rental investors have are generally very different from a residential buyer. They are rarely interested in schools, the availability of medical facilities and where the nearest mall is located.
In contrast, their concerns are related to the travel market. Will this property rent? Who is likely to rent it? And, will I get a good return on my investment
There will be a lot of questions, and if you don’t have answers based on a solid foundation of fact and statistics, there will be another broker who has that information to hand. A savvy investor will often make a decision on whether to engage you as their buyer's agent from your response to their first email.
When you are armed with up-to-date information that can help buyers make a quick decision as to whether it is even worth viewing in a particular neighborhood, you will earn your buyers trust and respect.
Maybe you’ve heard the acronym T.E.A.M.
Together Everyone Achieves More
It’s kind of cheesy but it’s true. Everyone does achieve more when you work together.
I can’t imagine trying to run my VR real estate business without my key people. In fact, they’re so important to the sale that if it wasn’t for how awesome they are at their jobs, I doubt I would ever be able to close a single deal or get any referrals. You need those awesome team players working for you too. . .
The good news!
None of them require a salary or paid vacation time from you.
The property manager is your best friend in these transactions. They are so powerful and so necessary in closing the deal. Without a great PM, your client may NEVER pull the trigger and buy.
The PM is the one who brings the assurance and safety factor into the transaction.
They’re the ones that sit down with your client and tell them “everything is going to...
The growth in the vacation rental industry has created a new generation of second home buyers.
Whereas owning a vacation home was once a dream to many, the potential of renting it out and creating an income that can pay a proportion of the mortgage has made the dream a reality. And, this is true in many cases.
However, everyone has heard a story about renting out a property and myths abound about the ‘easy money’ that can be made, and that you can just sit back and wait for the money to flow.
Let’s explore some of these myths and replace them with some hard truths.
Yes, and No
Yes, because vacation rentals are charged at a nightly rate for tourist accommodation, so whereas an average monthly rental for a residential property might be $1500 per month, a vacation rental might yield the same per week.
The thought of $6000 per month makes this quite a juicy proposition until you factor in the...
Buyers come in all shapes and sizes with all types of perceptions and expectations. With your focus on the vacation rental market, it’s important to be able to present them with appropriate and comprehensive detail so they can make informed decisions on the purchase of a second home
Having this information to hand will also stand you out from the bulk of your competitors – something we all want to achieve.
Here are five basic pieces of information that will position you as a vacation rental sales expert.
Buyers need to know….
Although the vacation rental industry is valued around $100 billion worldwide and is becoming more main-stream, many investors don’t know or understand the income potential that short term rentals can offer. They may have considered residential rental as an option, but the possibilities offered by the vacation rental industry may need to be explained to them.
Whereas destination markets were...
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