When investing in a vacation rental, remember: You are in competition with other investors, and a vacation rental business plan is your key to winning. Think about it this way: Imagine going into the Super Bowl without a game plan. That’s what it’s like buying rental property without a business plan. At mbanc, we have financed countless people just like you and positioned them for success throughout our decades as the premier lender in the United States for those who want to create passive income and succeed on their terms.
Using short-term rental data intelligence powered by STR Verifi to forecast ROI and gain unequaled insights into any market nationwide with the best DSCR loans or interest-only jumbo mortgages from one of the best mortgage lenders like mbanc will give you an unequaled competitive advantage. Learn more in our blog.
An Expert Vacation Rental Business Plan
This plan dictates the success of your investment. From the executive summary to the operations and marketing plans, learn the basics of creating one below:
An Executive Summary
An executive summary is the first component of a vacation rental business plan. Essentially, this is like the blurb on the back of a book. This summary is a brief description that provides an overview of your vacation rental business.
An executive summary will have all the essential information so someone can, at a glance, understand how your business will operate and what it does. It should identify the location, the property type, the target market, the best season for your rental, and why you bought it.
The next step in making a vacation rental business plan is defining your goals to solidify your vision. Keep them measurable, realistic, and relevant.
In other words, how many bookings do you need a month? How quickly do you need to start getting bookings? What are key milestones that will determine expansion?
STR Verifi empowers investors with AI-driven short-term rental data to identify rental market grades, daily rate benchmarks, daily occupancy, revenue projections, seasonality analysis, and comparables to ensure the investor makes a data-driven decision with confidence.
A solid vacation rental business plan will also include a value proposition. In other words, why are customers going to choose you? What gives you a competitive advantage? Having the right property management company is essential to enhance tenant experience, and increasing exposure to the right tenants.
In your plan, identify the difference maker for your business. Is it an MVP-caliber guest experience that other properties can’t provide? This is crucial to determine.
The customer analysis completes this trifecta to create a solid vacation rental business plan. You must understand who you want to attract to understand how to attract them. Consider everything and create different buyer personas.
Now, it’s time to observe your competition. Similar to industry analysis, the distinction here is that you are assessing immediate competitors.
Look at the people who may win buyers over you and determine what you can do to give yourself an edge. Evaluate how much they are charging per night, what the standard accommodation is, the amenities and services they offer, and more.
With the help of an innovative short-term rental calculator like STR Verifi, evaluating comparable properties and forecasting monthly revenue has never been easier.
Operations & Marketing Plan
STR Verifi provides data to back up your vacation rental business plan. Now, it’s time to draw up the plays and execute them. How are you going to achieve your goals?
Will you hire a property management company or self-manage? Who’s going to clean your rental? Do you need an accountant? What about revenue management? How to locate the best mortgage lenders for the best DSCR loans or interest-only jumbo mortgages?
Afterward, it’s time to execute. Outline marketing strategies that will generate bookings. What methods will you use? Do you need a website? How can you optimize postings?
STR Verifi seasonality analysis and comparables ensure the investor makes a data-driven decision with confidence.
Financing That Brings Your Vacation Rental Business Plan to Life (And Helps it Thrive!)
A vacation rental business plan is more than just an outline of your goals and operations; it is a compass and map that will guide you to passive income that will enable you to create generational wealth and continue to succeed and live life on your terms.
At mbanc, we are one of the best mortgage lenders, and our passion is helping people like you achieve their American Dream through the best DSCR loans and interest-only jumbo mortgages. Plus, with a state-of-the-art short-term rental calculator like STR Verifi, you’ll set yourself up for a big win!
Talk with our team for expert guidance when buying an investment property. We have investment mortgage options to make your dreams a reality.