CH A P T E R 1
to adjacent resort-condominium complexes and entire communities of homes. These communities are now offering daily vacation rentals through very large Vacation Rental Management companies. Owners of the units within these complexes enjoy a portion of the rental income their property generates. An example of this type of community is the Margaritaville Resort that just opened in Kissimmee, Florida in early 2019. Traditional hotels generally do not include vacation properties. However, the industry has exploded in the last five years, and as a result, many new resorts are building homes nearby in shortterm rental-zoned communities. These resort communities provide booking and services to the homeowners. These homes, villas, and condominiums can be either rented through the hotel/resort or rented out by their owners, directly or through agencies. VRP v. Timeshare
The VRP market is as large in Europe as it is in the United States, and Florida is a popular destination for VRP stays for Europeans. Consumers unfamiliar with the concept of a VRP may confuse it with the seemingly similar, but distinctly different concept: the timeshare structure. Timeshare development runs parallel to VRP development, so it is worth mentioning here. The first thing to understand about the timeshare model is that it’s wildly profitable—for the developer. Not for you, the owner. For those individuals and families who “invest” in a timeshare, they’re just buying use time. While some people do have bad experiences with timeshares, the model is actually very popular, has been around for many years and is still growing. Most people who have timeshares are perfectly happy about it. All 14 countries that I have worked in have giant populations of timeshare users. Timeshare development and investment is not going to slow down. It can be an efficient way to vacation if you use it right, but it does NOT have the potential of making you wealthy.
9
