Hospitality Net reports that earnings for U.S. short-term vacation rentals grew to their highest ever in 2021, a full 35% higher than at the start of pandemic while AirDNA expects short-term vacation rentals to grow 14.1% in 2022 vs 2021. With such optimistic outlook on vacation rentals, many would want to get into the industry. But how do you start and run vacation rentals successfully?
Our Gracious Sponsor
The Next Big Thing: Presented by The Rueth Team
Happening on January 20-21 is Denver’s biggest real estate event.
The Next Big Thing is shaking up how Real Estate professionals will define business success.
This two-day event will be far from typical. While our past may have shaped us, it is time to define the future. This energy-rich, content-driven event will introduce the biggest drivers shaping the industry, and instill how to harness the next big thing to catapult your own business. The Keynote speaker is Ryan Serhant plus 25 speakers!
Register now at thenextbigthingcolorado.com and use the code RESS for a $150 discount! #tnbtco #thenextbigthingco
Watch the episode here:
Listen to the podcast here:
In this episode, coach, author, real estate broker, and vacation rentals expert, Christina VanDergift, talks about the hows of running a successful vacation rental and why it continues to be a lucrative business even amidst the pandemic. She offers tips on locating, furnishing, advertising, marketing, and managing vacation rental spaces.
Listen to our conversation and learn more.
Key Points From This Episode:
- Christina’s beginnings in the real estate industry as a 20-year-old real estate agent and single-family investor
- Challenges Christina faced as a young female real estate entrepreneur in a male-dominated industry
- How Christina proved herself with grit and determination and earned the trust of people in the industry?
- How self-education helped Christina grow her business?
- What motivated Christina to transition from single-family to short-term vacation rentals?
- How lucrative short-term vacation rentals are compared to single-family home monthly rentals?
- Underwriting for a short-term vacation rental versus a single-family home monthly rental
- Check zoning regulations before starting a vacation rental business.
- Things to consider when furnishing vacation rental space
- How Christina promotes and markets her vacation rentals?
- Why location is crucial in the success of vacation rental business business?
- How Christina manages her vacation rentals remotely through property managers?
- The biggest risk on short-term vacation rental business
- Structure of fees (property managers, taxes, guest fees) in short-term vacation rental
- Preparing for a downturn and Christina’s predictions for the real estate market in the next six to twelve months
“As far as short-term rentals go, I think, it’s only the beginning of this. People are changing the way they travel. The demographics of people that travel are changing.” [0:20:31]
“After Covid, the era of social distancing is a norm now. There’s always going to be clients staying in hotels with people and elevators but a lot of people want a place where their family can go, have good internet, work from there, and vacation.” [0:20:42]
“Know the market conditions and if it does have an on and off-season. That has a huge impact on how much money your monthly cost and upkeep.” [0:19:47]
“People assume if others have properties and everything else that it’s unattainable for them. That’s not the case. You just have to be willing to learn and put in the work and learn from others.” [0:18:40]
“Location is everything – you want to be easily close to all the attractions. You want to have easy access for people to get in and out of.” [0:14:16]
“If we were to buy it and rent it out as a traditional family rental, it would have been $1400 a month for our gross rent plus taxes, mortgage insurance, and all of that stuff. We launched as a vacation rental, and it grosses $80-90 grand a year. In the summertime, we literally gross $8,000 a month. Had the same upkeep and wear and tear and everything else. It was such an eye-opener.” [0:07:44]
“A lot of people would look at me and think – oh, she’s just some punk kid. So, I felt that I had to put 150% into it to prove myself that I knew what I was doing, that they should take chances on me and work with me.” [0:03:54]
Links Mentioned in Today’s Episode:
About Christina VanDergrift
Christina understands the challenges of having big dreams, but little money or experience to take the first steps toward attaining them. She started with almost nothing other than grit, determination, and a willingness to learn and put in the work. Now, Christina strives to use her unwavering motivation and lessons learned to educate and empower people who are interested in getting into the vacation rental industry, real estate, or business in general but don’t know where or how to begin.
To help curious newcomers and traditional rental owners better understand this flourishing market, Christina VanDergrift has released “Vacation Rentals: The Ultimate Guide: My Wealth-Creating Secrets with Little to No Money Down!.” Drawing from her experience as a self-made real estate broker and entrepreneur, the book serves as a comprehensive resource for all aspects of owning and operating a vacation rental, including buying, managing, dressing, pricing, and maintaining the property.
VanDergrift has also launched her virtual Vacation Rental Academy to provide educational resources to individuals ready to take the next step in becoming vacation rental owners.
Love the show? Subscribe, rate, review, and share!
Join the Real Estate Syndication Show Community: