After speaking with hundreds of vacation rental managers this year, I keep hearing a common tension:

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Growth vs. Capacity

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If you’re a manager, you likely want to grow. It could be through improving performance of existing units or managing more units – likely both! But to do that, it takes time and money you don’t have.

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Nectar’s Manager Partner Program is uniquely situated to help you grow – it’s scalable, requires little time investment, and directly makes you money.

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Here’s a bit more context around why we’ve built this and how it works.

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Why start a Vacation Rental Management Company?

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Before we dive in, it’s important to unpack why people get into this business. Ideally it has something to do with a love for hospitality, customer experience, and operations.

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But let’s be real – it also has to do with money. Few people want to stay in the management grind forever. Most have an exit strategy of some sort. The three most common exit strategies:

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1. Invest excess cash flows into real estate – management companies are great because they don’t require much capital to get started. Just a good deal of sweat equity. When an operation grows and gets more efficient, it produces enough cash flows to reinvest into your own personal assets.
2. Stabilized Operation and Step Back From Day-to-Day – When management companies reach a certain scale, many operators try to transition out of the day to day. This can be a tough transition, but  This scale needed will vary by margins, market, and operator. One day, you’d have a smooth running operation, so you can take a step back from the day to day grind and enjoy the fruit of your labor.
3. Sell – If you build a solid mid-sized management company, you’ll generate plenty of interest from the big players. That will give you the ability to make a graceful exit with a substantial payday.

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In order to reach any of those dreams, you’ve still got some growing to do.

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But the space is crowded and competition is only getting more intense. Bigger, institutional scale players are coming in and gobbling up entire businesses at low prices. You’d prefer to not be their next victim. You want to build a healthy business that gives you options.

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Now, it’s important to point out – growing doesn’t always look like adding more units. It could mean becoming more operationally efficient, or finding new ways to drive revenue to the properties you manage.

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Adding new units isn’t the right move for everyone. But depending on your goals, it’s likely a good option.

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Growth – At What Cost?

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If you want to add new clients or otherwise grow your business, how do you do it?

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There are no shortage of strategies, but here are a few tried and true methods for attracting new customers:

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• Direct mail outreach
• Email campaigns
• Community involvement (both in person and online)
• Digital marketing / PPC
• Referral programs for clients and real estate agents
• Acquire another VRM

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All of these have been proven to work, each with varying degrees of success depending on your market and talents. But they all have one thing in common – they cost money. Lots of it. Which is a limited, precious resource for most VRMs. I don’t know many VRMs who are flush with cash. Great cash flow, but not tons of cash just lying around.

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What if there was another way?

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A way that would…

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• Help you acquire more properties to manage
• Increase revenue per property
• Sit solely on the ‘Revenue’ side of your Income Statement (doesn’t cost you a dime!)

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Oh, and your clients would grow with you without incurring any out of pocket expenses.

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Sound too good to be true?

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It’s not, with Nectar.

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How It Works

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We give vacation rental owners their future cash flow, in advance. When that cash advance is reinvested, it generates massive returns for both managers and owners.

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A few ways we’ve seen our cash advance put to use:

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• Down payment on a new property
• Adding a new revenue-driving amenity (e.g. hot tub, arcade, home theater etc.)
• New unit set up – furniture, design, labor, quality photography
• Renovations – both cosmetic and structural

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For select managers, we offer exclusive rates (for your clients) and revenue share opportunities (for you). 

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We work together to identify your top producing clients who are set up well for growth. We’ll even put together custom financing offers to meet their specific needs, including projected ROIs.

If you’re a vacation rental manager building a world-class business and looking to grow, I’d encourage you to apply to be a Nectar Manager Partner today.