Are you about starting a vacation rental company? If YES, here is a complete sample vacation rental business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a vacation rental business.
We also took it further by analyzing and drafting a sample vacation rental business marketing plan template backed up by actionable guerrilla marketing ideas for vacation rental businesses. So let’s proceed to the business planning section.
Why Start a Vacation Rental Business?
Starting a vacation rental business may not be easy from the outset, but you can be sure that as time goes on and with your consistency, you will break even. Vacation rental has to do with having folks who are vacationing buy or rent a vacation space/chalet for their vacationing. The competition in this industry without doubt is stiff. However if you are able to look beyond the competition and stay dogged, you can break even with plenty of returns.
Setting up a vacation rental business could be a fun, profitable and an interesting business even for someone who knows nothing. However, it is really important that you try to understudy the ones who have successfully started the business and broken even.
With the appropriate location, top-class facility and good marketing skills, you can provide lodgings for people in the society. Starting a vacation rental business would need a significant investment capital, solid planning, and attention to detail in order to keep your business profitable.
Reality is that if you are determined to explore the entrepreneurial world by starting a standard vacation rental business, then you should consider going through the business plan below. Business plan is an integral part of the success of your business no matter the industry you decide to pitch your business tent in.
A Sample Vacation Rental Business Plan Template
1. Industry Overview
Vacation rental properties are a very huge market, covering condo rentals, cottage rentals, chalet rentals, villa rentals, apartment rentals, farmhouse rentals, and boat house rentals. In fact, it’s projected that there are 6.8 million vacation homes in the united states. That shows that Americans love to spend time on a vacation property.
As an entrepreneur, this spells opportunity. Entrepreneurs usually buy a few cabins, rent them out, and reap the rewards. The goal with this type of venture is to cover expenses, including the mortgage, and make enough money to pay the handsome salary that one deserves…or even better buy more investment properties to rent.
In the Reportlinker website, it was estimated that the worldwide vacation rental market will increase at a compound annual growth rate of about 7.1 percent between 2017 and 2022.
They also stated in the report that millennials make up 40 percent of leisure travelers who order their travel online. They do it on their phones, use their work travel to produce personal vacations, and spend more on vacations than other age groups.
2. Executive Summary
Mario Allure Vacation rental home is a licensed vacation rental business. We have been able to secure a standard facility in a central and busy district in Colorado Boulevard, Pasadena – California. We are poised at competing in the highly competitive and fragmented vacation industry not only in Pasadena – California, but also all over the United States.
Our workers and attendants are going to be selected from a pool of dedicated, creative and highly experienced workers in and around Pasadena – California and also from any part of the United States of America as the business grows. We shall make sure that we take all our workforce through the required trainings that will position them to meet the expectation of the company.
We will ensure that we hold ourselves responsible to the highest standards by meeting our client’s needs precisely and completely. Mario allure Vacation rental is owned by Mario Allure, a core professional with hands – on experience to run this vacation rental business.
3. Our Products and Services
Mario allure vacation rental homes® Vacation rental® was established with the aim of maximizing profits in the tourism industry. We want to compete favorably with the leading vacation rental homes in the United States which is why we have but in place a competent team that will ensure that our vacation rental facility meets and even surpasses our customers’ expectations.
We will work hard to ensure that Mario allure vacation rental homes is not just accepted in Pasadena – California, but also in other cities in the United States of America where we intend opening our chains of vacation rental salons. Our products and services are listed below;
- Providing a comfortable space for folks and tourists who are on vacation.
- Providing top class hospitality and entertainment as they vacation
4. Our Mission and Vision Statement
- Our vision is to establish a standard vacation rental facility whose brand will not only be accepted in Pasadena – California, but also in other cities in the United States of America where we intend opening our chains of vacation rental salons.
- Our mission is to provide vacation rental services that can attract people who may not want to shoulder the responsibilities of owning a standard facility. We want to build a vacation rental home that can favorably compete with other leading brands in the industry.
Our Business Structure
Mario allure vacation rental homes intends to start out small in Pasadena – California, but hopes to grow big in order to compete favorably with leading brands in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.
At our rental home, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.
In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Accountant
- Facility Manager
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Facility Manager
- Oversees and agrees contracts and providers for services including security, parking, cleaning, catering, technology and so on
- Supervise multi-disciplinary teams of staff including cleaning, maintenance, grounds and security
- Ensures that basic facilities such as water and heating, are well-maintained
- Allocating and managing space between buildings
- Ensures that facilities meet government regulations and environmental, health and security standards
- Advises businesses on increasing energy efficiency and cost-effectiveness
- Overseeing building projects, renovations or refurbishments
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the Human Resource and Admin Manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Mario allure vacation rental homes® engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – planned vacation rental business that can favorably compete in the highly competitive tourism industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Mario allure vacation rental homes. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mario allure vacation rental homes;
- Strength:
Our core strength lies in the power of our team; our workforce. We have a team of certified, creative, highly trained and experience workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry. Another strength that counts for us in the location of our vacation rental home; it is located in the most ideal location in Pasadena – California.
- Weakness:
As a new vacation rental home, it might take some time for our business to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
- Opportunities:
The opportunities in the vacation rental line of business are massive considering the number of vacation homes in the United States who are embracing the options of cutting cost. As a vacation rental coy, we are ready to take advantage of any opportunity that is available in the industry.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new vacation rental business in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
This business model gives room for aspiring entrepreneurs to pitch their business in highbrow areas without necessarily breaking the bank. All they need to do is to ensure that their services are top – notch and they won’t have to spend loads of cash in maintaining the facility or marketing their services. The trick to make it big in this business is to offer top-notch services. Tourists usually like it when they feel at home.
8. Our Target Market
Before starting our vacation rental home, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of vacation rental homes who may not be able to accommodate a large number of client because of their size.
As such, Mario allure vacation rental homes® will work towards providing services, facilities and environment that will help us reach out to our target market. Below is a list of the people that we will specifically market our facility to;
- Foreigners
- Americans
- Students
- Children
Our competitive advantage
Surviving and being able to keep your head in the business world requires more than your expertise, creativity and knowing how to deliver standard services et al but also how to network with key people that matter. Because of the competitive nature of the vacation rental business, there is an increasing degree of related business activities, with big players dominating the market.
Our competitive advantage is attached to the state of the art facility that we have. So also, we have a team of certified, creative and highly trained and experienced workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.
Another strength that counts for us is the location of our vacation rental home; it is located in one of the busiest areas highly suitable for such business in Pasadena – California.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
Our marketing approaches will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all we do will be geared towards creating new market channels, increasing sales and our market share.
Our sales and marketing team will be employed based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Mario allure vacation homes® Vacation rental home.
Our business goal is to grow Mario allure vacation rental homes® Vacation rental homes to become one of the top 10 vacation rental brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Pasadena – California but also in other cities in United States of America.
Mario allure vacation rental homes are set to make use of the following marketing and sales strategies to attract clients;
- Open our vacation rental business with a big party.
- Advertise our vacation rental business on national dailies, local TV and radio stations
- Promote our vacation rental business online via our official website and all available social media platforms
- Print out fliers and business cards and strategically drop them in travel and tours offices, airport lobbies, hotel lobbies, sport facilities, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all our members; making our first impression count positively to those that patronize our facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our vacation rental salon facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Pasadena – California
- Create a loyalty plan that will enable us reward our consistent clients especially those that introduce their friends and family members to the business.
- Engage in roadshows within our neighborhood to create awareness for our vacation rental facility.
Sources of Income
Mario allure vacation rental homes® Vacation rental is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients. Mario allure vacation rental homes will generate income by offering the following services;
- Providing accommodation rentals for vacationers
- Provide entertainment for vacationers.
10. Sales Forecast
Just as it is with any other type of rental business, we are particular about the type of profit we want to make. This is why we will leave no stone unturned in making sure that we maximize profit.
We are well positioned to take on the tourism industry in Pasadena – California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow our vacation rental home business to enviable heights.
We have been able to examine the vacation rental market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Pasadena – California.
Below are the sales projections for Mario allure vacation rental homes. It is based on the location of our vacation rental home and of course our target market;
- First Fiscal Year: $150,000
- Second Fiscal Year: $400,000
- Third Fiscal Year: $800,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out P.R. and publicizing policies that will help us walk our way into the heart of our target market. We are set to become the number one choice when vacation rentals come to mind in Pasadena – California and other cities in the United States of America.
Below are the platforms we intend to leverage on to promote and advertise Mario allure vacation rental homes® Vacation rental home;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our tanning services
- Install our Bill Boards on strategic locations all around Pasadena – California
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List our vacation rental salon business in local directories / yellow pages
- Advertise our vacation rental in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t mean to charge more and we don’t intend to charge less than what our opponents are charging their clients in Pasadena – California.
As such, we have put sturdy plans in place to offer discount services once in a while and also to reward our dependable customers particularly when they refer clients to us. The prices of our services will be same as what is obtainable in the United States’ vacation rental facilities market.
- Payment Options
The payment policy adopted by Mario allure vacation rental homes is an all-inclusive one. This is because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mario allure vacation rental homes® will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for renting our space without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Whilst we plan to launch out in the most appropriate way, we also would like to go about things in the most appropriate way. This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The facility and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a vacation rental homes business; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Mario allure vacation rental homes® in the United of America;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $150,000.
- The total cost for facility remodeling to fit into the type of vacation rental salon facility – $80,000
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- The cost for our grand opening party – $15,000
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard vacation rental homes business in the United States of America.
Generating Funds/Startup Capital for Mario allure vacation rental homes®
No matter how bizarre your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very vital factor when it comes to starting a vacation rental home.
Mario allure vacation rental homes® Vacation rental home is a private business that is solely owned and financed by Ms. Mario Allure and her partner. They do not intend to welcome any external business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Mario allure vacation rental homes® is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to lease our facility a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Mario allure vacation rental homes®. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard facility and reconstructing the facility to fit into the kind of vacation rental salon facility we want to manage: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of tanning tools and equipment and supplies: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress