Vacation Rental Property Business Plan and SWOT Analysis

Vacation Rental Property Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Vacation Rental Property Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Vacation Rental Property business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Vacation property rental businesses have become extremely popular over the past 10 years given that people can now easily list their properties on platforms such, VRBO, as well as a host of other websites that allow individuals to place their apartments and homes for short-term rentals. The barriers to entry for this type of business are very low given that the individual simply does needs to own or rent a property that allows them to sublet the place on a short-term basis. The startup costs associated with this type of business very substantially given that property values can range anywhere from $50,000 into the tens of millions of dollars depending on the location and the size of the property itself.

These businesses tend to do very well in major metropolitan areas given that people are frequently looking for ways to stay in a major city without having to go to a hotel room. Many people have taken to using sites like and given that they can provide an individual with a home to stay in rather than a more sterile hotel environment. The barriers to entry are considered to be very low for this type of business. The most difficult aspects of operating a vacation rental property business is that there needs to be a constant monitoring of the people that are venting these business properties on a short-term basis. However, many new sites to allow for the screening of potential tenants before people book a room. This is important to note given that some people have experienced several thousands of dollars in property damage due to improper use of a property. However, it is important to note that while this is a risk faced by all real estate businesses one of the ways that this can be ameliorated is through the proper screening of people that will be renting a property on a short-term basis.

Most banks and lenders look to place money with vacation property rental businesses given that they are able to generate highly predictable streams of revenue while concurrently having a significant amount of collateral on hand as it relates to these types of businesses. Of course, a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios pages going to be needed in order to properly apply for a business loan. As it relates to industry research, there are approximately 25,000 companies within the United States and actively acquire real estate with the intent to rent it on a short-term or long-term basis. Aggregate revenues in each of the last five years have exceeded $32 billion and the industry employs approximately 100,000 people.

One of the things that should also be discussed within the business plan is the demographics of the people that will be frequenting the properties. This includes an examination of median household income, median family income, number of times they travel per year, and the amount of money that they’re willing to spend on a daily basis for renting a vacation rental property. Also within the business plan, a discussion of the competition that we faced on an ongoing basis should be included as well. This includes discussing local and area hotels, motels, RV parks, and hospitality businesses will be in continued competition with the vacation rental property business. An examination of area bed and breakfasts should also be included.

The marketing required by a vacation property rental service is somewhat minimal. Many people use sites like,,  and related platforms in order to promote their properties for rent. The expense of setting up these accounts is minimal given that these companies take a commission each time a property is rented through their business. Many vacation property rental businesses will also maintain a proprietary website so that people can directly book a room with these businesses on an ongoing basis. However, it can be anticipated that a vast majority of the bookings will come from third-party platforms.

A vacation property rental service SWOT analysis should be produced as well. The these documents focus on the strengths, weaknesses, opportunities, and threats that are normally faced by these companies on an ongoing basis. As it relates to strengths, this is a high gross margin business given that it is a service provided to the general public. These businesses can be highly lucrative provided that they are located in a major metropolitan area or area that is frequently sought after by vacationing people. The startup costs are considered to be moderate depending on the property and the barriers to entry are considered to be very low.

For weaknesses, declines in economic productivity or an economic recession can have a substantial and deleterious effect on the revenues generated by these companies. Business travelers tend to stay in hotels given that there are a number of awards programs that allow it to stay at a family of hotels at a lower expense over time. As such, most vacation property rentals are sought after by personal travelers. One of the ways that these businesses will mitigate the risks associated with operating a vacation rental business is to provide a short-term residential lease during office seasons.

For opportunities, these businesses can readily expand by simply acquiring additional properties that can be offered through online sales channels. Additionally, many vacation property rental services will frequently hire travel agents that can place short-term tenants within the properties on an ongoing basis as well. The commissions are associated with both using an online platform and wore a travel agent are very similar.

For threats, outside of any major economic recession there is very little that will impact the way these companies do business. The demand will always remain strong for an individual property to rent it so that people can enjoy a getaway experience in a home rather than a hotel room.

It should be noted that there are some regulations that require individual owners of properties to maintain hotel and occupancy licenses so that they can provide their services on a short-term basis while collecting the applicable taxes that are associated with these types of sales. Outside of any major change in regulation, these businesses can remain profitable and nearly almost any economic climate and they do not face risks from things like automation and related activities.