STRATEGY
INTERNATIONAL RENTALS
But what I wasn't prepared forwas what I foundwith vacation rentals. I couldn’t believe howmany local owners don’t
knowwhat tourists are
willing to pay for vacation rentals in their area.
International Vacation Rentals HOW BEING A BOOKING AGENT CAN RESULT IN TRIPLE THE EARNINGS WITH LITTLE LEGWORK.
what I found with vacation rentals. I couldn’t believe how many local owners don’t know what tourists are willing to pay for vacation rent- als in their area. I found recreation rentals that were priced on Airb- nb between $1,600 and $2,400 a month, while on Facebook Market- place I saw prices for comparable rentals between $600 and $900. How can these units be priced so far below what the market is willing to pay? Imagine if someone decid- ed to be a middleman (or co-host) between these guys and the tourist market? They would make a killing and the property owners would be ecstatic because they would be able to get more business at full price without paying commissions. But, why just imagine? It’s a no-brain- er for everyone involved and each
agreement is worth about $1,000/ month in passive revenue. So, I be- gan connecting with vacation rental property owners and doing arbi- trage so I could make more money while removing the headaches that come with co-hosting. The way that co-hosting works in the States is that you find some- one who has a vacation rental or an apartment that's furnished. You work with them to get it on Airbnb and you manage the whole thing for a 20 percent cut. For your 20 per- cent, you list the place, manage it, manage the clients and any issues they have while they're there, and you manage the cleanup between guests. You can choose to clean it, or you can manage a third-party cleaning service. But you have to make sure that it gets done. You
basically take 100 percent of the responsibilities for a 20 percent share of the profit. By finding this gap between the local value of vacation rentals and the perceived value from the visiting market, I found an oppor- tunity to connect Airbnb or other third-party vacation-rental seekers with undervalued vacation rentals from local owners. If you’ve ever co-hosted before, you've been in a situation where you really have to work for your 20 percent. On the flip side, what if all you had to do was reach out to someone and say “Hi, I'm with a company that helps owners of vacation rentals like you book more customers, and we pay your full price and take no commission! May I send business your way?”
by Nick Veira
n my experience, vacation rentals are the most lucrative way to generate rental income with any type of rental or standalone unit in today's market. It is possible to take studio apartments in New Jersey, for example, that typically earn $600 a month to generate over $2,000 a month. It is possible I
vacation rental arbitrage. I recently have been living in Cartagena, Co- lombia, and have been looking for an apartment to purchase there. I started researching Facebook Marketplace to find an apartment to buy and found many beautiful apartments at great prices. But what I wasn't prepared for was
to turn duplexes in Dania Beach, Florida, from $1,700 a month to almost $7,000 per month during high season. Paying close attention to the val- ue that tourists place on recreation destination rentals can be very lucrative. And the hottest thing that I’ve discovered most recently is
62 | think realty housing news report :: october / november 2019
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