Should You Buy A Vacation Rental Management Franchise
Starting your own short-term rental company as a host or property manager may seem overwhelming if youre doing it from scratch. Luckily, there are several vacation rental franchise companies that allow you to run this type of business while still receiving training and ongoing support from experts in the industry. Learn more about leading vacation rental franchises below.
Alternatives To Vacation Rental Franchises
Buying a franchise requires a big commitment, and many times the long-term commitment isnt worth the access to the proprietary resources. Alternatively, the Lodgify Academy is an excellent option for both beginner and experienced property managers who want to learn how to build and scale their vacation rental business. You can also check out these 21 Short Term Rental Courses to Gain Expertise.
Here at Lodgify, we provide property managers with tools like our Website Builder, Channel Manager, and Property Management Software that all help you save time and money, grow your bookings and automate your business as much as possible. These tools are perfect if you like the idea of increasing your knowledge without committing to a franchise.
Vacation Rental Concierge Service
Knowing how to wow your renters is the secret to getting great reviews once theyve checked out. Vacation rental concierge service is the term used to define the services that make a guest feel welcomed, taken care of, and pampered.
Unlike a hotel concierge, you are not expected to book theater tickets or dinner reservations upon request. However, if you want to truly make a lasting impression, you can! If you dont live locally or dont want to bother with pulling this type of thing off on your own, there are plenty of vacation rental concierge services who will gladly do it for you. Or, use a virtual concierge service with Alexa for vacation rentals.
For a more down-to-earth concierge service that still feels personal and makes the stay one-of-a-kind, some concierge ideas simply include:
- Leaving a welcome snack and beverage from a local purveyor
- Making under-the-radar restaurant suggestions
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How To Do Vacation Rental Marketing
When thinking about how to market your short-term rental, there are literally dozens of ways. How can you optimize the options so you dont waste money, but gain it instead? Listing your home on a vacation rental site is the first, most obvious, and best way to get noticed by guests seeking short-term lodging.
When you list your property, you get a lot more than just a little blip on the results page. For example, listing with Grand Welcome gives you full access to:
- A state-of-the-art website
All County Property Management
All County Property Management supports residential landlords with a robust menu of services such as rental property evaluation, marketing rental properties, tenant screening, lease execution and enforcement, rent collection, lease renewals, evictions, security deposit administration, property maintenance, property inspections, accounting, and reporting.
New franchisees receive four days of intensive training at corporate headquarters in Saint Petersburg, Florida, and two more on-site days of training when opening. Each location has its own customized interactive website and comprehensive web-based software package to manage the business.
Founded by Scott McPherson and Sandy Fererra in 1990 and franchising since 2008, the number of locations has expanded in recent years from 13 in 2011 to the current total of 58 , of which two are company-owned and all are located in the US.
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Learn About The Business
Next youll hop on a presentation call to provide you with an overview of the important parts of the business, industry, etc. This step allows you to get a better sense of the nuts and bolts of our systems, and will also allow our team to get to know you better.
If we both agree that this is a good fit, youll move onto Step 3.
Build A Brand That Clients Remember
Think back to a time when you stayed in an Airbnb or hotel and had such a positive experience that you recommended the stay to a friend or returned for another trip. What was it about their property that had such a lasting impression on you? Try to incorporate some of those elements while building your brand. The key to turning a first-time visitor into a returning guest is creating this positive, memorable travel experience for them.
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Do I Need Experience In A Vacation Rental Business To Succeed As A Vacation Rental Franchisee
Absolutely not. You dont need to have any experience in a vacation rental business to start and be successful as a franchisee. However, there are a few different traits that will make the work much easier for you if they are a natural part of your personality.
For example, do you have:
- A strong entrepreneurial spirit? If you have a strong social and professional network and enjoy connecting with people from all walks of life, then it will be easier for you to grow your business. A willingness to take a calculated risk is also a key trait that all good entrepreneurs tend to have.
- High motivation? Getting your own business up and running requires a lot of energy and drive to push through the paperwork and other details that seem to be endless. However, this level of effort is only temporary until the business begins to almost run itself. Motivation is still a good quality to possess to keep everything running smoothly and profitably for the long term.
- Passion for customer service? Are you willing to go above and beyond for the sake of your guests enjoyment? Doing so reaps the very real rewards that positive reviews bring. Being personable and a team player will go a long way in establishing a thriving, trustworthy business.
- Organizational skills? Keeping track of multiple listings is only easier if you can coordinate your efforts and manage other members of your crew .
What Grand Welcome handles to help you focus on your business:
When And Where You Should Invest In Property
When you should invest mostly has to do with your own personal and financial situation. However, as with any type of long-term investment, the sooner you start, the better. Thats because property values will always rise in the long run.
As far as where you should invest in property, its smart to look at tried-and-true places as well as up-and-coming locations . Here are a few things to consider:
- Warm weather locations usually do better than colder locations.
- Multiple high seasons mean more bookings.
- Some cities highly tax vacation rentals.
- Urban population centers have very expensive real estate and fierce competition.
- Smaller to medium-sized towns with high occupancy rates are a good bet.
If you are thinking about investing your money in a beach house, check this article.
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The 4 Best Property Management Franchises Of 2021
This annual list of the best property management franchises was revised and updated on April 28, 2021.
Its increasingly common for ordinary people to own property as an investment. Whether its an apartment theyve held onto after moving in with a partner or a house theyve bought specifically for its long-term value, its one of the most secure and reliable financial investments.
But while theyre keen to benefit from the value of property, many dont want to handle all the details of managing the property, such as maintenance, advertising vacancies, screening potential tenants, and collecting rent on a monthly basis. This is where the services of a property management company come in, and where property management franchises make their money.
The US property management market is worth $96 billion, which represents a more than $10 billion increase from the previous years total, according to IBISWorld. The industry employs over 840,000 people in over 300,000 businesses. The companies in this market range from those overseeing individual rentals for solo investors through to the management of entire office blocks in bustling cities. Its an industry with a range of different niches, in which someone with skills in administration and management can shine. Property is the foundation stone of the economy, and provides secure work for those involved with it.
Open A Vacation Rental Business
Before you jump right in and buy a property to fix up and rent out, there is a lot of preparation that must be made in order to make it work. You must write up a vacation rental business plan, review and understand all the vacation rental rights and laws, go through a vacation rental property management checklist, and know how to prepare your house for rent.
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First Things First What Is A Franchise
While most often associated with the restaurant industry, franchises are a low-risk way to enter any market, especially when you lack expertise in certain areas. They work by providing access to a brands trademark, including their entire tried-and-tested business system. In return, you pay an initial feeand ongoing royaltiesto gain the right to operate under their brand. Franchises, including vacation rental franchises, have long been a stable method of entering a market and can be very profitable for the franchisee .
Vacation Rental Franchise: Is It Worth Joining
In recent years, the short-term rental industry has been booming, and with the intense competition around, its becoming harder to get your business off on the right foot. Luckily, a vacation rental franchise can help hosts to launch a business or expand a current one with the help of a more established brand.
In fact, according to iTrip Vacations, the short-term rental property management franchise industry alone is worth $30 billion. Here are the ins and outs you need to know about this exciting business model.
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How Do Vacation Rental Franchises Work
The two key players in a franchise contract are the franchisor and the franchisee. The franchisor is the one who grants the right to the brand, systems, and business structure. On the other hand, the franchisee is the business owner who buys that right to the brand to expand their vacation rental property business under that brands name.
If you become a franchisee, youll take on the franchise fee and ongoing royalties in order to use the franchises systems, resources, and brand. What operations are you responsible for? Anything that requires you to be physically present at the property like maintenance, cleaning, and greeting guests.
Before a franchisee buys a franchise, there is typically an initial get to know you period between the two parties to ensure that the contract is a good fit for both. From there, you can expect to go through an onboarding/training process before managing your properties.
Do I Need Any Experience To Start With A Vacation Rental Franchise
The good news is that you do not need to boast any prior experience in the vacation rental industry if you want to become a franchisee. That being said, you need to have certain traits which will help you along the way and increase your chances for long-term success. These include an entrepreneurial spirit, motivation, an interest in customer service, and organizational skills.
After all, most vacation rental franchise programs offer comprehensive resources to get you started. So, you can also rest assured knowing that they will share their experiences with you to help you kickstart your own business.
Alternatives To Joining A Franchise
Many people think about joining a franchise because they lack business expertise, but find the added commitments may not make the collaboration worthwhile. In these cases, investing in training may be a better option. Start with a short-term rental accelerator course or check out Mark Simpons Boostly for tips on how to increase your direct bookings. Also, be sure to subscribe to VRMB for insight from Matt Landau, and .
If you already have a property and havent invested in software, the time is now. Its critical to use a property management platform that includes a direct booking site to maximize on rentals a dynamic pricing app that integrates with your PMS and an integrated cleaning and turnover app.
To run a smooth operation, its imperative to check all your blind spots. Once you map out your current operating processes, you will be able to eliminate bottlenecks and move full speed ahead.
What Do You Need To Launch Your Own Franchise
The number one thing you need to launch your own franchise is a business model that you know works well and will be scalable in the future. From there, its a good idea to consult with a lawyer to understand what will be legally expected of you as the franchisor and to start drawing up a franchise agreement.
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Vacation Rental Franchise Or Start Your Own Business
The decision of buying a vacation rental management franchise or starting your own business from the ground up is ultimately up to you. There are certainly pros and cons involved in either choice.
A Hawaii Grand Welcome franchisee says that franchising has allowed her to be continuously improving and growing the number of vacation rental properties we are able to offer to our guests.
Ultimately, if youre new to the vacation rental industry, or if you dont have ample time or experience to invest in starting your own business from scratch, a franchise may be the right choice for you.
For more tips on running a vacation rental business, visit these resources.
How Much Money You Need To Invest In Property
Financing a rental property through a bank is different than financing for a primary residence. Depending on your credit, you must put at least 20% down. So, if you want to purchase a $200,000 property, youll need $40,000 in cash up front.
If you dont have that cash on hand, consider taking out a home equity line of credit. Or, another possible option is to use Seller Financing. This means the seller of the property acts as the bank/mortgage company, negotiates a smaller down payment, and receives the monthly mortgage payments.
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Vacation Rental Inspection Checklist
Next up, its time to create and review your vacation rental inspection checklist. This will act as a record of the state of your property before its rented to guests. This helps to make sure your property is ready to be used, and also helps assess damages should you need to make a claim to your insurance company after a guest checks out.
This list can include inspecting items such as entry, appliances, electronics, safety measures, furniture, etc.
How We Compiled The Worlds Top 50 Vacation Rental Property Management Companies List
This years list is the result of hundreds of international nominations over a period of two months.
It contains detailed information provided by the property management companies themselves, combined with hours of investigative reporting by our team.
The result is The Top 50 Short-Term Rental Property Managers who are boldly redefining the industry across the world.
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Hidden Costs Of Vacation Rental Franchises
Apart from the financial fees, there are a couple of hidden costs to take into account when joining a vacation rental franchise.
How We Help You Live The Dream
iTrip is in the exciting short-term rental property management industry that shows strong and continued signs of growth. Thats because every day, more and more travelers are choosing private accommodations over hotels and motels to meet their needs while away from home. iTrip Vacations has partnered with some of the most respected listing sites in the industry to help you reach more travelers more frequently, and our thorough and ongoing training and support means youll always be prepared to offer the very best in services to both travelers and property owners.
Our vacation rental management franchise training and support for your short-term seasonal and urban rental business begins with the initial program youll take part in as our experts go over everything you need to know about running your franchise on a daily basis. Topics well cover include:
How to reach prospective property owners and referral professionals
How to market your franchise to reach your best demographic
How to maximize your networking efforts
How to manage your properties
How to manage your listings from rental rates, to revenue forecasts, to creating bookings and quotes
How to leverage our exclusive software and technology
And so much more!
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Pros Of A Vacation Rental Franchise
- It offers great flexibility. You can work remotely on your own time.
- You do not need a big team to launch your business. Even as your business expands, you will be able to run it with limited employees.
- In most cases, you dont need to own a vacation rental property to join the program.
- You can make use of proprietary know-how, tried and tested processes, and a wealth of knowledge. These resources will help you to generate a profit from the get-go.
- Your vacation rentals will be advertised to an established list of internal clients.
- The territory in which you will be operating is defined and protected.
- You are not alone. You will receive training and support.
- While it often requires a low initial investment, the upside can potentially be massive. All in all, it can help you to grow your market share and enter into new markets.