Online Travel Marketplace Vacatia Raises $5M To Simplify Buying And Selling Timeshares

With Airbnb, HomeAway, Roomorama and plenty of others, there’s no shortage of vacation rental platforms for travelers to browse. Add to the list Vacatia, a secondary marketplace aimed at timeshare owners who want to sell their fractional interests to other travelers. The startup has raised $5 million in seed funding from investors, including Spencer Rascoff, CEO of Zillow; Erik Blachford, former CEO of Expedia; Greg Waldorf, Trulia board member; Thomas Byrne, former president of LoopNet and more.
The idea behind Vacatia is to provide an active, open and liquid marketplace for professionally managed resort rentals, CEO and founder Keith Cox tells me. While buying timeshares from developers is no problem for most people, owners who want to sell often have a hard time finding buyers, Cox says.
“If we could create a very strong platform where buyers and sellers could engage each other and make for a liquid marketplace … then if we can activate that secondary market, it would bring more equilibrium and efficiency to that market,” he tells me.
To list a property online, Vacatia users create a free account, upload information about the shares they are selling and publish the listing at the price they want. Vacatia will then add information about the resort to further simplify the listing process. Users can also elevate their listings by submitting additional information for Vacatia’s verification process.
Once a buyer and seller are connected, a seller can either accept, counter or reject a buyer’s offer. If the seller accepts, both parties are introduced to a title company to take then through the escrow and closing process. Vacatia then takes a cut of the profits from the seller based on the sale amount (if the timeshare sold for $10,000, Vacatia would take $1,000).

There are several other platforms for listing and selling timeshares, including Ebay, Redweek and Sellmytimesharenow.com. But Cox tells me Vacatia wants to differentiate itself by maintaining a free and open marketplace for all sellers, buyers, brokers and developers. Vacatia has implemented a preferred broker program, which discounts its sales fees by half for participating brokers.
Right now Vacatia only allows resale listings, but Cox says he wants to expand into listings from primary developers and homeowners associations so users can buy directly from developers.
Additional investors include Robert Spottswood, Raymond L. Gellein, Jr., Barry Sternlicht, Steve Hankin, Egon Durban, Douglas Dillard, Jr., Gene Frantz and firms Maveron, Bee Partners, Peterson Ventures and Meyer Ventures.

HomeAway Inc. : Vacation Rental Performance Remains Strong: HomeAway Vacation Rental Owners’ Revenue Increases In Summer 2013

Vacation Rental Performance Remains Strong: HomeAway Vacation Rental Owners' Revenue Increases In Summer 2013 
 

In the newest industry research from its "HomeAway® Vacation Rental Report: Owner Edition," HomeAway, Inc. (NASDAQ: AWAY), the world's leading online marketplace for vacation rentals, highlights the strong performance of its vacation rental owners during the summer season.  The case for vacation home owners to rent their otherwise vacant properties to travelers grows more compelling when examining the number of bookings and increased rental rates compared over last year.

A Strong 2013 Summer Season 
 
The Labor Day holiday brings a welcome conclusion to a lucrative summer for many vacation rental owners. This summer's report finds the average occupancy rate for vacation rentals is 77 percent for vacation rental owners who consider summer their peak season.  These owners reported an average weekly rental rate of $1,778 ($254 per night), a 19 percent increase over the same time period in 2012.

Comparatively, Smith Travel Research, Inc. reports the average occupancy rate for U.S. hotels for the summer season was approximately 70 percent  (a slight two percent rise from the same period last year) with an average room rate of $110.21 per night, representing just a 3 percent increase over the same time period in 2012.  Even though the nightly rate of a hotel is lower than that of a vacation rental, vacation rentals still hold a much higher value than a single hotel room, offering multiple bedrooms and bathrooms, allowing for comfortable and convenient family and group travel.

For the second consecutive year, nearly nine in 10 vacation rental owners (86 percent) report their summer business was about the same or better than last summer.  And 95 percent of vacation rental owners said they did not lower their rental rates from last summer-23 percent even increased their rental rates.

"It's clear from this year's report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit," says Brian Sharples, co-founder and chief executive officer of HomeAway.  "Nothing makes me more proud than aiding our owners and property managers in filling their vacation rentals."

Overcoming the Concerns of Renting a Vacation Home

Taking the Leap of Faith to Fortune
One of the top concerns of vacation homeowners prior to opening their homes to travelers includes concern of losing money on the endeavor (23 percent).  But the survey debunks this myth: among those owners who have a mortgage on their vacation rental home, more than half (51 percent) are able to cover at least three quarters of their mortgage payment-an increase of six percent year-over-year from summer 2012.  Additionally, nearly three-quarters (70 percent) cover at least half of their mortgage payment-an increase of six percent over last year.
Time Well Spent: The ROI of Managing a Vacation Rental
Prior to renting, vacation rental owners (35 percent) also worry if they can balance managing the home as a rental with a full-time job or family obligations. In actuality, vacation rental owners spend only an average of 8.4 hours per week marketing and managing their vacation rental properties.  With an average weekly rate of $1,778, a vacation rental owner is grossing approximately $71 per hour of work.

"If the owner optimizes the time and effort put into managing their vacation rental, the return on investment is substantial," says Sharples.

A Family Vacation or Retirement Retreat = Income Generator
Thirty-nine percent (39 percent), of owners originally purchased their vacation home for personal use. As such, there is a concern among 35 percent of owners that once the home begins to rent, they aren't able to utilize the property for personal use any longer.  However, nearly two-thirds of owners (66 percent) spent up to 28 days in their vacation rental in the past twelve months, and the majority (76 percent) of owners cites personal or work reasons for not being able to spend more time in their vacation rental, not guest bookings.

Another 15 percent of owners classify their vacation rental as a future retirement home.  The average age in which owners purchased their vacation homes was 48 years old-six years younger than owners in 2012-and the average age in which owners began renting their vacation homes was 50 years old-also six years less than owners in 2012.

"Consistent with what we have seen from the National Association of Realtors  year after year, vacation home buyers are getting younger, realizing the benefits of purchasing their future retirement home early and paying down the mortgage by renting it," says Sharples.


Hot Vacation Home Markets 
 
For those considering making an otherwise vacant vacation home available for rent, or purchasing a vacation home, traveler demand to fill these homes is rising in the Florida Panhandle with Fort Walton Beach, Navarre Beach and Pensacola/Pensacola Beach leading the country as a vacation destination.  Compared to this same time last year, the growth of inquiries and new vacation rental listings in the Florida Panhandle is rivaled by its neighbors Captiva & Sanibel Island and North Carolina's Outer Banks region, which shows strong performance from Duck, Kitty Hawk, Corolla, and Kill Devil Hills.

Although, it's not just beach destinations increasing in both supply and demand.  Ski spots Keystone and Durango, Colo. are peaking along with Park City, Utah.  Perhaps a dark horse in these burgeoning vacation rental markets is Sunriver, Ore., boasting a 77 percent growth in vacation rental listings and complementary traveler demand growth as well.

The top 10 markets where traveler demand is on the rise, based on a year-over-year analysis (Q2 2012 vs. Q2 2013) of inquiries from travelers looking to rent a vacation home, include:

Police warn of phony rental scam on Craigslist

LAKELAND -- 
Lakeland police are warning residents about a scam involving phony rental listings on Craigslist.
Police said the scam involves an ad for a home in Lakeland. The suspects list the residence with pictures, showing the house as a great deal, and then when someone who is interested responds, the scammers ask for a deposit to be paid using Western Union.
The incidents have reportedly taken place between mid-July and the beginning of August. Sometimes the ad will be listed as a vacation rental at a reduced monthly price. Police said the listing is generally designed to appeal to as many people as possible.
Police said phony rental listing scams have become more frequent and sophisticated in recent years, and that some of them even involve the use of fake rental application forms online, which the scammers then use to obtain third-party information for identity theft.
Officials said residents should take the following precautions to avoid being victimized:

• Do not send anyone money for a rental property unless you have personally inspected it and met the landlord.
• Do not send money to a foreign country for a rental property that is local.
• Never wire funds via Western Union, Moneygram or any other wire service - anyone who asks you to do so is likely a scammer.

Anyone with suspicious information regarding a possible scam is asked to report that information to the police department.

Craigslist scam: Woman says she rented nonexistent Newport house

A Spinning Wheel Road woman told police she rented a non-existent house in Rhode Island for her daughter.
The woman told police she rented a Newport, R.I., house on Craigslist for one night.
The supposed landlord provided bank account information for the woman to transfer money into, and she reportedly did so, paying $150 plus a $400 security deposit.
When her daughter arrived in Newport on Aug. 14 she couldn’t find 7 Van Zandt Drive. When she spoke to a neighbor, she was told there is no address and this has happened numerous times.

Top 6 Tips for Letting Your Home

If you've decided to rent your home, there are a number of handy hints and tips that can help make the process an easier process. Getting prospective tenants can be something of a headache, so use some of these ideas to get your home let in no time at all.

1. Getting ready to let

There are many things that you'll need to take into account when you're preparing to get your home on the letting market. Do you want to let your property furnished or unfurnished? Will you manage the property yourself or would you rather find an agent to take the strain? What are the costs you need to cover with your rental and will you be able to cover it with the kind of rent you'll be able to charge?
Take some time before you start to answer these questions. Once you know how you're going to approach your let, you have a good starting point for getting your property ready for prospective tenants.\

2. The power of the facelift

When you're looking to attract people to take on your home for rental, there are things that you may have become accustomed to overlooking that will be glaringly obvious to any prospective tenants. Many of these things are relatively easily fixed and can make all the difference in terms of the ability to attract the right kind of tenants.
From the outside view of the property, it's time to tidy up and repair any cosmetic issues that might turn people off on first view. Many tenants will drive by before they actually look inside and if they don't like what they see you've lost a potential tenant before you've had the chance. Cut the grass or the hedge, pull the weeds, repair cracks or holes and give the woodwork a lick of paint if it's looking a bit tired.

3. The power of advertising

Knowing the type of tenants you're looking for will have a big impact on how you advertise your property to any potential tenants. Are you looking for a young family or a professional couple? That could make the difference between advertising a three bedroom home or a house with two bedrooms and a study. If you're looking at renting to students or individuals taking on separate rooms, you will need to decide whether you advertise the whole house or take rental for each room individually. Once you're clear, it will make getting the right people much easier.

4. Pitching your price

With a clear understanding of the costs you need to cover in order to break even, you can consider how you decide the cost of rental. While most people take into account the cost of the mortgage and, for fully inclusive lets, the cost of bills but it can be the hidden extras that take you into tricky territory.
When working out how much you can afford to let the property at, make sure you include a premium for any maintenance work needed on an on-going basis, insurance and fees for solicitors and agents to make sure you're not overstretching yourself.

5. Choosing your agent

If you decide to go with an agent rather than managing the let yourself, you'll need to choose someone who deals with the market you're targeting. Many agents specialise in student lets or have contracts with nearby firms bringing overseas workers to jobs in the UK. Picking the right one can speed the process of letting.

6. Getting your tenants

There are a few things that are simple common sense when you get into the letting phase. When you have tenants coming to see the property, make sure it's clean and tidy to give the best possible impression. Be open and honest about any issues with the property that you need to sort out to save ending up with a disgruntled tenant and always make sure that you have a pot of coffee brewing!

Conclusion

Renting your home can involve a lot of hard work, but if you take the right steps you can be sure that you find the right tenant at the right rent.

Real-Estate Tycoon Gives $200 Million to University of Michigan

Stephen M. Ross, a self-described academically average transfer student who graduated from the University of Michigan, will become the school's biggest benefactor Wednesday with a gift of $200 million.
The real-estate developer's gift, the single largest in the university's history, will be split between its business school—which is named for Mr. Ross, a 1962 graduate—and its athletics program.
The university, based in Ann Arbor, said the gift would bring Mr. Ross's lifetime giving to the school to $313 million. That puts him in the upper ranks of donors to their alma maters, including New York City Mayor Michael Bloomberg, who this year committed $350 million to Johns Hopkins University in Baltimore.
"I believe you give till it feels good," Mr. Ross, 73 years old, said in an interview. Mr. Ross, a Detroit native who attended the University of Florida before transferring to Michigan and earning an accounting degree, is the founder and chairman of the 40-year-old Related Cos., a New York-based real-estate development company with some $15 billion in assets.
In 2004, Mr. Ross gave $100 million to construct a new building for the University of Michigan's business school and to bolster the school's endowment. The latest gift is meant to "finish the job" in upgrading the business school's other buildings, Mr. Ross said.
"He's finishing the vision and it's a big vision," said university President Mary Sue Coleman.
Mr. Ross, who owns the Miami Dolphins football team, played intramural sports at Michigan and has made past gifts to support student athletes. The new donation will build out the athletic campus, which will carry his name, to serve some 900 student athletes. He said he wanted to boost athletes who aren't part of Michigan's marquee sports programs.
Mr. Ross will serve as the chairman of the university's next major fundraising campaign, to begin this year. In May, Mr. Ross joined the Giving Pledge, a public commitment started by Warren Buffett and Bill Gates for the super-rich to donate the majority of their wealth. Mr. Ross said he plans to give away half of his net worth, which Forbes magazine has estimated at $4.4 billion, and Related Cos. now estimates at more than $5 billion. "I will be leaving more than I've given to Michigan, much more," he said.
Write to Melanie Grayce West at melanie.west@wsj.com

Vancouver real estate sales jump by half

Greater Vancouver housing sales volume roared ahead 52.5 per cent last month.
The number of properties sold on the Multiple Listing Service reached 2,514 in August, up sharply from the same month of 2012, the Real Estate Board of Greater Vancouver said Wednesday.
While buyers rushed back into the housing market, the increased sales came after a weak period in the summer of 2012. In July last year, the federal government reduced the maximum period on government-backed mortgages to 25 years from 30 years. Real estate experts say the change, which knocked some first-time buyers out of the market, contributed to the slowdown in housing sales in Vancouver in August of 2012.