December 10, 2013
According to travel website Expedia.com, of the 14 days of vacation that the average American received in 2012, only 10 of those days were actually used. Aside from such dolorous findings of vacation depravity, this information helps us to understand the significance of VacationFutures.
Vacation home sales were more than 10 percent higher in 2012 than in the previous year, according to the 2013 Investment and Vacation Home Buyers Survey – with approximately 11 percent of all home transactions for vacation properties. That’s awesome – vacation homes are great – but with Americans only averaging 10 vacation days per year, all of those houses need to do more than just sit idly the rest of the year. With VacationFutures, you can manage your vacation property efficiently, giving you additional income when you’re not using it.
VacationFutures is a startup that has created a wholesale rental marketplace that allows homeowners, property managers, and real estate investors to buy and sell future rental rights. They offer a proprietary listing and auction platform that lets homeowners get risk-free, up-front income from their vacation homes, and allows property managers and investors to increase their returns on management by buying wholesale and renting retail.
Traditionally, vacation home owners could work with a vacation rental manager to rent out their properties, or they could do it themselves. There are issues with both of these routes, though. Aside from having to pay them a commission, homeowners who worked with rental managers directly were faced with an imbalance of information: they didn’t know the appropriate market rates for their properties during various seasons or dates, and were often left with whatever information the property managers offered them. For homeowners who managed their properties on their own, there was a high opportunity cost in having to spend hours trying to keep track of everything. Through VacationFutures, determing a fair market price for your property is an innate function of the platform.
Vacation homeowners simply list their property’s availability in blocks of time through the VacationFutures website. Inventory/property managers can look through properties on the platform and bid against each other to buy those blocks of weeks during which an owner’s property is available. Then, the winning property manager managers that property for that designated time period. Because properties are rented out wholesale, the homeowner is provided with money up-front without needing to worry about paying fees to the property manager. On the other side, property managers can grow their inventory and receive 100 percent of the revenue they earn from any of those properties. According to Andrew McConnell, the co-founder and CEO of VacationFutures, “These transactions should only occur if both sides are better off. Knowing that we’re giving these homeowners their lives back, and that we’re enabling these managers to grow their businesses – that’s an amazing feeling.”
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