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Investment

Case Study: Increasing Profitability of A Folly Beach Vacation Rental

     

Folly_Beach_Investment_BLOG_IMAGEThere is a compelling argument to be made that when you assume management of a luxury vacation rental property you are obligated to market and manage it to its highest potential. The following is a case study that supports that management doctrine.  Built in 2009 113 East Arctic Ave is a fairly new high-end condominium on Folly Beach.  There are 4 units of about 3000 sf. each all with luxury finishes.  While future bookings existed on unit C prior to Luxury Simplified Retreats assuming management in January of 2015, they were cancelled by the owner.  This allowed Luxury Simplified Retreats the ability to deliver results right out of the gate — as our marketing efforts produced bookings that ultimately exceeded projections through the peak season (see graph below).

In order to deliver consistently on the luxury standard we provide for properties within the Luxury Simplified Retreats portfolio, unit C has also undergone an update.  Mismatched utensils and countertop appliances were replaced and the bedding and towels etc. were upgraded. 

Below reflects the net effect of advertising on sites such as VRBO, Air B&B, and our own website and active promotion via social media and our own exclusive distribution channels.  We also take bookings that come in as a result of the downtown event venues that we operate which can be booked out 18 months in advance.  

The horizontal axis is months and the vertical axis reflects money achieved in that month. September is the last closed month as of time of writing.

Folly_Beach_Rental_Performance

Our management fee, inclusive of concierge service for guests is 20%. Manager A charged 15%.  Figures are net of management and cleaning fees.  Net revenue under Manager A for 2014 was $44,000.  Our performance is $99,000 in the same period.  This was achieved by effective marketing campaigns and upgrading the facility so higher rental rates could be expected especially for the peak season weeks.  

On the basis of performance and positive customer experience, our company recently assumed management of Unit B, "The Vista" in the same building and we expect to deliver the same favorable performance results.

Note: The Folly Beach vacation rental market is becoming one to deliver consistent income for property owners as this is becoming a popular vacation rental destination.  Luxury Simplified Retreats is uniquely positioned to help achieve those goals for homeowners and has a dedicated booking website that allows us to handle vacation clients inquiries quickly, efficiently and at reduced costs ... Find out what we can do for you by viewing the booklet below!

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