Turnkey Vacation Rental Service?

Question

I'm trying to get a business off the ground to set up vacation rental properties (anything from sourcing furniture and decor, to policy/guidebook creation). In that process, I am doing some research on the market for that service. I haven't found anyone that does something similar through google & craigslist searches, but am convinced that somewhere out there, someone must do something similar!

• Do you know of anyone that provides that service? 
• In theory, if the price was right, is that something you as a potential investor would be interested in?

Just trying to put feelers out to see if this is something even worth exploring. Thanks for your thoughts!

John Underwood · Answer

Decorating for us has been an ongoing endeavor. You get the basics, then you find fun pieces to add over time.

Doug Pintarch · Answer

I like @John Underwood 's line of thinking about this subject.   We learned as we went what to do and what not to do with our first, and when we bought our second it was a case of "Duplicate everything that works" and we were up and running in no time.  We planned on more so picking up furniture at sales and stores and grabbing lamps and stuff as we came across them at great prices was something we just did, so the second was over half furnished when we started looking. I have not heard of any service like your proposal.  Doesn't mean it won't work though.

Nancy Bachety · Answer

There’s a gentleman on BP who is, or was, doing something similar. MasterVacationRentals dot com. @Jake Cohen

Aside from Jake, I’ve gotten “information” from local STR property managers who have compiled similar information, some more extensive than others. But that pick your brain method is not as easy as your packaged easy to buy method. I can see your market being realtors who are known in the short term market as well as the successful vacation property managers. You would essentially make their life easier if they get the property properly set up with the right furnishings. And a nervous buyer is more likely to turn into a confident buyer.

Jake Cohen · Answer

@Nancy Bachety thanks for the mention.

@Megan Ristine we started a website that was aimed more at first time STR owners or people looking to make their STRs better and put up some of the products we use and software recommendations etc. We were not trying to charge anyone for this info, just getting a few bucks here and there from affiliate links. We created some webinars on how to best manage as well. We are working on some other projects now and haven’t updated our products in a while. Happy to chat with you if you have questions.

Good luck on the business!

Brian G. · Answer

@Megan Ristine so here on BP and perhaps especially on this STR forum, we are mostly diy investors and self management proponents. However, yes I could see how an inexperienced investor could potentially benefit greatly from someone functioning as a consultant. You could sell a service that includes holding another investor’s hand so to speak. From purchase, to make ready to management, etc. Investors can often find this by working with a great realtor who specializes in the space. Personally, I’m mentoring two people right now for free. Both of them I know personally so I’m happy to do it as a favor. My goal is to be available for any and all questions and to provide any support needed until their 1st property stabilizes, they get the hang of things, etc. Others helped me get started and I want to pay it forward, of course my time is limited so that offer is for those I know personally as it does require a little time over about a 3 month period or so. For sure this is a valuable service as once one acquires the skill of running a VR biz, it’s a skill they can monetize the rest of their lives in one way or another, in any market of choice, etc. Hope that helps!

Michael Baum · Answer

Hey @Megan Ristine, welcome to the forum! There are some folks that do some of the things. There is a company that does complete design and purchases for vacation rentals worldwide. They are professional designers and seem to do pretty well.

I don't know of anyone doing a full soup to nuts service. I think it is a neat idea, but I don't know how viable it would be as a business. Like other have said, many folks are doing vacation rentals as a one or 2 type of thing. They do it because it is fun to do. Setting up a place from scratch, making it homey, making it perfect for families or couples or whatever you place is for is a fun part of the work.

I could see your service falling in the in-between investors. People with tons of vacation rentals will have systems in place to take care of setup of a new place pretty quick. They have a formula that works. People with one, like I said, would most likely be excited to do the setup themselves. What you could market to is those that have half a dozen LTR's, other real estate investments and are looking to diversify into vacation rentals. They might not have the time to setup a new vacation rental (or other furnished STR) due to their business. Plus they probably don't have any experience with designing spaces for vacationing folks.

There is another rub there. How much design experience do you have? Have you done a few vacation rentals with objectively successful results? Why would anyone hire you to do their setup? It will take some time to get a rep.

One more thing is there is a lot of information on setting up vacation rentals. Everything from decor to electronics, from kitchen to linens.

John Underwood · Answer

I don't know of anyone that does this either. Anyone that already has one STR would be able to duplicate what they have already done before. So I only see this service being needed for the first time investor with more money than time.

Maybe that is your position?

Megan Ristine · Answer

Collin - I have also thought about this and would like to get to a point where I put a package together and more passive investors could invest in 'shares' of the portfolio. It's nice to know someone else thinks it could be a good idea!

Collin Hays · Answer

I like the sounds of the service.  However, what I have found with folks who buy STRs as investments are generally pretty active in their investments by nature.   So this personality type isn't necessarily going to be the hands-off type that you need to sell your service to.

What would be cool is to put together an investment buying group, whereby you pool dollars to buy various STRs, and your service to that company is the various things you outlined.  That has some attraction to passive investors, I would think.

Paul Sandhu · Answer

I do not know of anyone or have heard of anyone that provides the service.

It would have to be at a lower price than what I currently do it for myself.  I get furniture and appliances at estate auctions.  They are used, but generally 1/10 the price of new.  My kinds of tenants don't care if it's not new.  I do all the decorating myself too.  Buy artwork on eBay for a few dollars and I make the frames myself from lumber and a table saw.

Turnkey Vacation Rental Service?

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