Lux Vacation Rentals LLC

The luxury vacation rental business is exploding. Due in no small measure to the growth and success of AirBnB, VRBO, Home-Away and others, travelers everywhere are choosing homes over hotel rooms when they travel. While economy is a driver for much of this business growth, a growing number of high net worth travelers are eschewing hotels for luxury homes that offer enhanced privacy and many of the comforts of home. As a result, a niche market has developed in recent years for the rental of luxury homes and estates on a short-term basis (3 to 14 days generally). This has spurred an increasing number of owners of luxury homes and estates to market their properties for lease on a short-term basis. According to Forbes, “It's clear that vacation rentals are here to stay, offering tremendous year-over-year growth as landlords and homeowners come to the realization that furnished and serviced properties located in sought-after vacation destinations can often produce 2 to 5 times the rental income over unfurnished properties rented to long-term tenants. It's apparent that there's an enormous amount of profit to be made in this industry when it's done the right way.” However, industry leaders such as AirBnB are also entering this market, encouraging property owners to market through their substantial websites for a cut of the proceeds. As industry veterans with large databases and well-established policies and procedures continue to enter the luxury niche, it will become more difficult for individual property owners to compete for attention and get their properties leased on a consistent basis. In addition, while the niche is growing, it is still relatively unknown to or of no interest to the vast majority of luxury property owners.