INTRODUCTION

WHAT COMES TO MIND when you hear the word profi t? Some might think of profi t as the excess of returns over expenditure in a transaction. In other words, money. There’s certainly nothing wrong with that, but another defi nition of profi t is to be of service or advantage; to derive benefi t.

I prefer this defi nition. As they say, “Invest in land, because they are not making more of it.” To this, I would add, “Invest in time with your loved ones, as they are not making more of it.”

There are many investments that can turn a fi nancial profi t; there are not many that can provide family memories, adventure, love, and connection. Consider the “profi t” of seeing your spouse smile while lying in the sun by the pool, or of your child giggling in delight while taking her fi rst ski lesson. Or how about the feeling you get from the “profi t” of regularly having your entire family or group of friends together in your vacation home?

Owning Vacation Rental Property (VRP) makes all this possible and more, including fi nancial gains. BIG fi nancial gains. Having spent two decades in the resort/residential industry, operating within the Hospitality, Development, Finance and Sales and Marketing sectors, I have observed this industry up close, and seen well-intended investors from other asset classes stumble before doing extremely well in VRP.

WEALTH AS A VACATION

I have also seen the well-intentioned and experienced developers enter this sector and make costly mistakes, sometimes for years, before becoming profi table. I want to help others avoid that initial stumble and assist you, the new VRP business owner, to profi tability—in terms of both fi nancial and personal enrichment.

In my career, I have known, and know to this day, many private investors who have had their lives changed with this business. Many have quit their jobs, assembled an array of vacation rental homes, and now spend all of their days on vacation. They have transformed their lives into an ongoing adventure in some of the most beautiful, exotic, and interesting places in the world. They get to see their spouses smile and hear their children giggle with delight, all year long.

The traditional paradigm of investing in income-producing real estate was this: the longer the lease, the lower the risk. The short-term vacation rental industry was historically classifi ed as high risk. However, that’s changed thanks to a few key factors:

• The exponential growth of this industry • The addition of technology tools • Widespread standardization • The size and attraction power of new short-term rental communities and developers • The increased sophistication of the vacation rental management industry

The risk of investing in short-term rental properties has been reduced to equal that of long-term leased property. Furthermore, during this maturation of the VRP industry, the income of short-term rental has remained far higher compared to long-term leased property. Residential rental real estate is a solid investment option. VRP is the residential real estate rental business on steroids. With relatively low risks and higher potential profi ts and returns, the industry has attracted more investors each year.

I have had the unique opportunity to participate in and shape this

INTRODUCTION

growing sector. Working for and with organizations like Four Seasons, Hard Rock, Margaritaville Resorts, AECOM, Nicklaus Design, Gensler, Rentyl, World Green Building Council, Encore Resort, Fairfi eld Resorts, RCI, and many, many others, I have been doing business daily from the inside of the Vacation Rental Property industry from its days of hotel “rental pools” to its current level of standardization and sophistication.

I have studied most of the tutorials, books, and online content that is currently being off ered to the VRP investor. All of these resources are very helpful, and most do touch on the marketing, online booking, and management aspects of your VRP. However, a successful VRP business is more than the marketing and cleaning of a vacation home. There is a massive array of variables in this business. There are many more considerations and many more disciplines you need to master than you may realize if you are to treat VRP as it should be treated— as a business. YOUR business.

The purpose of this book is to act as your startup guide to VRP. Ready to pursue a life of vacations? Let’s get started.