fbpx
Submit
Feedback

Explore Vacation Rentals Franchises & Businesses

Vacation Rentals Industry

General Industry

The vacation rental industry is a subsection of the broader real estate and rental market that focuses on residences in popular vacation locations, such as waterfront areas like beaches or lakes. Although renting out vacation homes has been practiced for decades, the advent of websites such as AirBnB have only accelerated the growth of this industry. The market is highly fragmented as most vacation rentals are on an individual basis, occupied by those who are wealthy enough to own at least two residences and rent the other one out for extra streams of income. In the vacation rental industry, homes are rented out for days or weeks at a time, typically accompanied by a predetermined agreement drawn up by the owner and occupant.

Real Estate Industry Trends

The real estate industry has not been exempt from the debilitating economic impacts of the COVID-19 pandemic. At the base level, stay at home orders and fear of transmission has limited open-houses, and economic insecurity has reduced demand in the housing market. However, changes in the real estate industry has largely been regional — real estate in rural areas have experienced a surge in demand while real estate in metropolitan areas have declined as remote work becomes a prominent alternative to traditional work. The temporary halt of rent payments in 2020 and tenants continuing to struggle to pay rent thanks to the economic downturn brought on by the pandemic has also affected the real estate industry significantly, especially small-scale landlords and property owners who depend on rent payments to make mortgage payments.

Key Industry Numbers

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

0 %
Charge Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

0 :1
SBA Loan Success Ratio

For every 21 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 9,131

Vacation Rentals Industry Trends

Initially, the COVID-19 pandemic brought the vacation rental industry to a grinding halt with most people sequestered in their homes during lockdown. However, the vacation rental industry has been surprisingly resilient, made evident in the recent debut of AirBnB as a publicly traded company. While many owners have decided to not list their houses or offer rentals for health and safety concerns, there has been some activity as people become increasingly frustrated by lockdown and are in desperate need of a getaway, and vacation rental homes are a safer option to hotels. Furthermore, the pandemic has led owners of vacation rental homes to enact extra measures in the name of safety, such as increased diligence of cleaning and sanitation.

Average Real Estate Franchise Industry Percentage Fees

0 %
Royalty Fee
0 %
Marketing Fee

Standard Real Estate Franchise Industry Investment

$ 0 K

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 69 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 26 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted. 

*SBA Franchise Loan Data from 2010-2019

*Franchise Businesses taken into account: 542

Franchise Industries: Free Guides Available

Learn more about the Real Estate Industry

Are you interested in owning a franchise in real estate services?

vetted-biz-cover-real-estate

Download our free exclusive industry guide

Submit Feedback