VRS027 - Guaranteed Vacation Rental Income Explained with Andrew McConnell of Vacation Futures
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If you have ever wondered how great it would be to be able to guarantee your income as a vacation rental home owner; not worry about occupancy levels or the commission your agency is collecting, then there is a new player on the block that may have the answer.
Vacation Futures, co-owned by Andrew McConnell and Mickey Kropf allows professional property management companies to compete for blocks of vacant weeks offered by VR homeowners, thus taking the risk away from the independent owner. By offering guaranteed income to owners, property managers can then create competitive pricing strategies without being answerable to anything other than the prevailing market conditions. Owners, accepting the highest bid on their property then work with the PM to establish the ground rules and criteria, and the deal gets done.
This episode brings you a great interview with Andrew, who explains the whole concept with clarity and precision and I came away having moved from mild scepticism to enthusiasm. Wholesaling your rental weeks may not suit everyone but it’s an idea that has taken root in the areas of the US more densely populated with vacation rental homes and property management companies. It’s an interesting one to watch.
In this episode we talk about:
How property managers are meeting the new challenges posed by listing sites
Why conventional property management models are losing ground
Why owners no longer need to gamble on their occupancy levels
3 benefits to to property managers
How the Vacation Futures model gives control back to PMs to set prices according to market fluctuations
The types of owner who may not benefit from getting involved
Why agencies may be wary of guaranteed contracts
The future of vacation rentals and raising standards