This book is a "must read" for those who are passionate about the Vacation Rental business
The most comprehensive collection of VR "things you need to know" anywhere
you’re in the Vacation Rental business,
you’re getting into the Vacation Rental business or
you’re growing your Vacation Rental business….
“The Definitive Study of Vacation Rentals” is a book that is a must read. In it we…
-discuss the latest Vacation Rental (hereafter “VR”) trends,
-present VR metrics and use them toward the road to profitability,
-provide interactive models you can use to assess new rental units,
-explore new hybrid businesses that supporting VR’s and that enable higher VR profitability,
-study new APPS and PROGRAMS that allow your VR businesses to be more efficient.
As a former CFO and Asset Manager for traditional hotels, condo-hotels and vacation rental companies I have been a student of metrics and financial statements. The fact is that “hotel metrics” may nominally change year over year, but those numbers are the collective average of hundreds of thousands of hotels.
The most important take away is that the majority of expense line items from hotels to vacation rentals are the same. In a basic example, if a guest stays at a 4 diamond hotel or vacation rental home for one night, the amount of shampoo, conditioner, lotion and soap consumption and, related cost, will be the same! 85% of your hotel financial statement has the same parallel expense comparisons.
When we know that hotel annual averages bring 20.6% to “their amount available for debt service & other fixed charges”, we need only to substitute expense lines that are unique to the Vacation Rental business to arrive at the potential Vacation Rental “amount available for debt service & other fixed charges”. I do this for you.
I’ll show you THE ANNUAL HOST REPORT (put out by Smith Travel) that shows you these metrics and then I’ll compare that report, side by side, to the Vacation Rental business model. See Exhibit “A” below – HOST REPORT.
I provide you with analytical tools I created on excel and that you can use to determine whether any Vacation Rental unit meets the “margin test” of whether it is one you will add to your rental pool. See Exhibits “B.1 and B.2” below – Single Unit Profit Margin Evaluator.
I look forward to taking this journey with you and welcome interaction regarding your experiences, compared to mine, in our BLOG and in Facebook Group discussion.
This book addresses every Vacation Rental scenario you can think of!
From what I call the new Mega Vacation Rental Company of over 50 units, to the part timer who buys a few units and runs the business him or herself. Each chapter is broken up into 3 categories.
1). Under 15 units
2). From 16 to 50 units
3). Mega Rental Company 51 + uinits
I also discuss the different ways Vacation Rental companies can take on new units
4). Revenue split arrangement
5). Fixed fee arrangements (maser lease)
6). A combination of the two after a unit meets a certain threashold.
....and provide easy to use excel woksheets (with supporitng video) that evaluates single and multi unit properties.
7). Plug in vital statistics to determine whether "single unit" considerations meet certain margin goals that will make your VR business profitable.
8). plug viital statistics into the "multi unit worksheet" to evalute a group of apartments in the same building.
I also discuss revenue channels that are available to you in the VR business and how to use and even exploit them.
9). Vacation Rental Revenue Channels
10). Hotel Revenue Channels