Resources

As we start another year, we see a myriad of changes in the industry. Noise and distractions are at an all-time high. Changes in distribution, new technology and increased exit opportunities force vacation rentals managers to dedicate time, effort and energy towards these changes. These changes are important, but how do you prevent these industry changes and opportunities from taking over your business? It boils down to finding focus and being diligent about time management your business.

As I approach my nineteenth year in the vacation rental business, I finally sat down and counted up all of the vacation rental transactions that I’ve been associated with over the years. From the transactions that I can remember, we’ve successfully closed or facilitated the purchase of more than 100 companies. That’s a value of in excess of two hundred million dollars. It’s amazing to me that our cottage industry is now mainstream. As I thought back through these transactions, the most successful transactions had a number of deal points and items in common. If you have ever considered selling your vacation rental business or acquiring a business stick to what works for maximum financial benefit and a smooth transition.

If you are seriously considering selling your Vacation Rental Business for sale and want to garner maximum value in the sale for your business, there are several steps you should take before moving forward.

As the industry continues to change, more and more vacation rental company owners are considering an exit or preparing their business for sale. While many owners are struggling with the numerous technology changes facing the industry, or the disintermediation of the sales process, other owners are being solicited and are interested in selling or simply want to learn what their business is worth.

As a Vacation Rental Manager (VRM), you day is filled with a myriad of responsibilities, most, if not all of which are operational in nature. Most VRM’s are not spending the day reviewing income statements, performing financial analyses or calculating metrics. VRM’s are inherently great at the relational components and marketing aspects of the business. Frankly, if we all operated like Accountants, we would have any properties to manage!

I’ve often said, the only constant in the vacation rental business is change. It is clear that the vacation rental industry has seen its fair share of change this year, as much or more than any other year. With the myriad of changes currently facing the industry, Vacation Rental Managers (VRM) can expect to see operating profits materially decrease over the near term.

It has been an exciting few years in the Vacation Rental Management Industry and the next few years look to hold as much, if not substantially more, prospects for growth and success. An overall improved economy, low interest rates and an increased awareness in the Vacation Rental Management space has led to many significant acquisition transactions.