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Leasing long-term rentals and converting them into outstanding vacation homes which provide landlords higher income and eliminate vacancy risk with Vacayo…
Isabel Berney (COO/Co-Founder) and Truth Oladapo (CEO/Co-Founder) of Vacayo join John Matson and guest host Jenny Silber (VoyagerHQ) in the MouthMedia Network studios powered by Sennheiser.
In this episode:
- Examining the short term rental market, how much a revenue property can hold, developing a propriety pricing algorithm, scraping websites to see the highest earning potential of homes, and owners can earn at least 40% more at least with short term stays added into the mix instead of long-term leases
- How this is an arbitrage model, and the risk is potentially in any miscalculation in revenue-generating potential of a home — but with historic data, and the fact that the vacation market is growing, the risk appears to be low
- How the model is different and not just profit sharing, so some risk is involved
- Additional risks of a downturn in travel, a major shift in economic conditions, etc.
- Landlords receive a monthly payment regardless, so what Vacayo does to cover that risk
- Insuring each home as well in case Vacayo can’t rent properties due to storms etc.
- How Vacayo has started to install smart devices which revealed people are spending less time in the homes than believed, overcoming the landlords’ misconceptions that homes have greater wear and tear and risk with comings and goings in short term rentals
- How in the future Vacayo will likely be more of a data company,
- Why Vacayo is banking on a nomadic lifestyle
- Providing flexible accommodations with more options and sleeping arrangements than hotels, people prefer vacation rentals as a result
- Vacayo is partnered with Ikea and Wayfair to succeed in getting things ready quickly, with the right team working together can do fast turnarounds in 48 hours
- How they started off on Craigslist, bootstrapping, and were discovered by a landlord
- The six markets Vacayo is in
- “Superhosts” who take care of on-the-ground operations as independent contractors, with easy onboarding, and working on a percentage
- The matching process with renters to properties
- The crowd-funding campaign as a way for people to own a part of the company in a sharing economy, but without the complexity of formal shares
- Why there is little worry about competing with companies like Airbnb, and how there is plenty of room left in the industry, especially for an asset-light business model
- How Vacayo specializes in large group travel
- The story of Berney and Oladapo starting out as roommates