EXECUTIVE SUMMARY

  • Vantage Home Rentals helps homeowners turn their vacant properties into additional passive sources of income.
  • To capitalize on the growing demand and broaden its market share, the company strategizes to attract passive investors willing to purchase properties that are most suited for the successful short-term rental business.
  • Over the past 10 years, Standard & Poor’s had an average annualized return of under 7% (about 5% when adjusted for inflation), and housing appreciation was less than 5% annually. Bond yields are at an all-time low, and alternative investments have not made many investors rich.
  • With a cash outlay of as little as $100,000, Vantage Home Rentals can find properties that can generate returns of over 40% annually.
  • Our competitive advantage in the market is that we are first on the path to building a real short-term rental management company with exclusive and all-encompassing packages for homeowners, investors and renters alike, with superior customer service, utilizing a wide array of cutting-edge marketing tools.

 

INDUSTRY LANDSCAPE

  • Short-term rental properties are gaining popularity.
    • They are more private than hotels and offer a more intimate and convenient vacation alternative.
    • Family reunions are commonplace, and more extended families prefer getting together at a private house in the woods than in a crowded hotel.
    • The emergence of “celebration vacations” has also boosted the vacation rental industry. Vacation Rental Managers Association, VRMA, reported 70% of leisure travelers having taken a vacation to celebrate a special occasion.
    • Vacation rental statistics also showed (VRMA):
      • 22% of leisure travelers stayed in vacation home rentals instead of a traditional hotel or resort during the past two years (a 10% increase from 2010).
      • 49% of leisure travelers are interested in staying in a vacation home rental as an alternative to a traditional hotel or resort during the next two years (up from 44% in 2010).
      • Higher percentage of affluent leisure travelers both have stayed at and are interested in staying at rental properties.
  • Shortage of hotel rooms on the market is resulting in occupancy rates and hotel room prices being at all-time highs (STR, hotel benchmark company).
  • Many homeowners rent their second homes, but most lack the time and/or knowledge necessary to manage this successfully. This, in turn, increases the number of customers who are searching for desirable rental properties with high- quality service.
  • There are more than 300,000 properties available for short-term rental nationwide, and this number keeps growing. Most of the market consists of individual homeowners struggling to meet the increasing demand for customer service. Today, very few managing companies can offer homeowners a worthwhile one-stop solution.

 

BUSINESS SOLUTION

  • Vantage Home Rentals makes it easy for property owners. We help them generate cash flows from their vacant properties by offering a comprehensive suite of valuable expertise including:
    • Robust marketing strategy
    • Superior customer service
    • Property listing optimization
    • Guest relationship management
    • Advising owners about property optimization and best practices
    • Payment collection and reporting
    • Expense disbursement and bookkeeping
  • This allows property owners to create a top-notch reputation for their rental properties and maximizes their cash flow without having to put in the time and effort that would be required to do this on their own.
  • Below is an example of how we were able to improve occupancy rates while also increasing the nightly rate that we charge on our first property. These two metrics combined allow us to grow cash flows exponentially.

rates

INVESTMENT OPPORTUNITY

  • Currently, Vantage Home Rentals helps homeowners manage their existing properties, even homeowners who didn’t purchase the properties with the short-term rental business in mind. These properties may not have all desired characteristics. By adding investor capital to this model, we can select properties for purchase that are best suited to perform well as short-term rentals.
  • Investments in short-tern rental property offer a number of benefits:
    • They are not correlated to financial markets.
    • They provide high returns combined with the safety of residential real estate.
    • Long-term investments generate positive cash flow within one to two months.
    • Well-performing properties appreciate in value and can be liquidated for significant premiums.
  • Most opportunity is identified in the mid-market segment due to the shortage of four- to seven-bedroom houses that can sleep 12 to 25 people. Ideal investment property to purchase will have the following characteristics:

prop

PROPERTY PURCHASE

  • Our qualified team will help you purchase and manage your property:
    • We will help you select the right properties and prepare them for renting in such a way that will ensure cash-flow maximization.
    • We can help you obtain appropriate level of insurance and identify what improvements are necessary to achieve optimal returns.
    • We will put together a pro-forma marketing and investment analysis on each particular property.
  • Below are examples of three available properties in the Pocono Mountains region in Pennsylvania that we recently identified:

Purch

PROJECTED REVENUE

A thorough market analysis generated the following cash-flow forecasts for these three properties :

revenue

INVESTOR’S RETURN

Return will depend on how the investment property is financed. Below are three financing scenarios for each property:

RETURN

 

 

 

 

PROTECTING YOUR INVESTMENT

The biggest reservation homeowners have about renting their property is fear of damage. Although damage may occur, we take the following steps to mitigate these risks and protect your rental income:

  • We verify the renters’ age and identification in the initial screening process.
  • We collect full pre-payment from renters.
  • We collect a security deposit of 25% to 50% of rental amount.
  • We require rental insurance and damage protection on the property.
  • We have partnered with an insurance agent that will offer you homeowners’ insurance with optimal short-term rental coverage at a reasonable cost.
  • We recommend insurance for revenue losses due to property damage.
  • We hire local caretakers/handymen who conduct inspections upon guests’ departure.