Franchisees Thrive in the Booming Short-Term Rental and Property Management Market
The SkyRun Vacation Rentals franchise covers all the angles for homeowners who want to earn income when they’re not using their getaway homes and for franchisees who manage those properties for maximum income. SkyRun offers the advantage of a turnkey local property manager who has the support of a national brand.
“We alleviate stress for second homeowners by managing every aspect of their short- term rental through our full-service model while providing an elevated resort-quality experience for guests who stay in those properties,” says Lukas Krause, CEO of SkyRun Vacation Rentals. “Because we’re a franchise, we’re unique in the industry in our ability to deliver the hands-on care of a local business without sacrificing the technology, reach and sophistication needed to stay ahead in an increasingly complex industry.”
As SkyRun expands across the United States, it will upsize its segment of the global vacation rental market, which was $82.6 billion in 2022 and is expected to achieve a compound annual growth rate of 4.7% from 2023 to 2030, according to Grand View Research. The Broomfield, Colo.-based franchise currently has more than 1,250 homes under management through its 40+ independently owned and operated locations. It was founded in 2004 and became a multi-location brand in 2009, and began franchising in 2023, adding 14 franchise locations so far this year in areas such as Orlando, Florida; Kona Coast, Hawaii; and South Orange County, California.
Day to day, SkyRun franchisees juggle an array of obligations. “Overall, they’re responsible for growing and operating their business,” Krause says. “This involves recruiting homeowners who are seeking a property management partner to aid in the management of their second home, servicing guests who book those second homes, managing maintenance and cleaning of those homes, collecting all fees, and remitting income to the homeowners, and more.
“When homeowners work with a SkyRun franchise, they receive a white-glove service on their home. They can rest easy knowing that SkyRun is taking care of everything so they can simply enjoy their vacation home when they want without the stress of managing rentals when they’re away.
“It’s a lot of work to successfully manage a vacation rental. Whether it be dealing with guests or keeping up with maintenance or simply making sure that the home is being listed on the best channels and being priced appropriately to bring in maximum revenue, it can become a full-time job to manage a property successfully.”
Benefits for SkyRun Franchisees
Franchisees like SkyRun’s business model because it offers them “the training, marketing support, tools and systems to stay ahead in a fast-evolving industry,” Krause says. “Since 2020 and the Covid-19 pandemic, more Americans than ever have stayed in a vacation rental — and liked it. Alongside this industry boom, we now see evolving pricing strategies, heightened guest expectations, an increase in booking channels, and complicated regional regulations coming into the picture, which make the business of short-term rentals more complex than ever before.
“The SkyRun model offers savvy entrepreneurs a set of systems, tools and training to quickly and easily build a successful business, and the proof is in our results. SkyRun homeowners consistently report earning up to 30% more on their second home after switching to SkyRun. In addition, SkyRun enjoys a Net Promoter Score of 62.” (A Net Promoter Score, or NPS, measures customer loyalty through firsthand feedback and serves as a predictor of a business’s growth; NPS scores range from minus-100 to a positive 100.)
SkyRun is a partner to Airbnb and VRBO. “Both of those platforms, and others, are instrumental in helping our franchisees to properly market and consistently book the properties they manage for homeowners throughout the country. While SkyRun has our own direct booking engine for booking our properties, a key advantage of being a part of the SkyRun family is that our software automatically distributes the properties we manage across all the top online booking sites like Airbnb and VRBO. These partners are core in helping the franchise grow, keeping franchisees successful and homeowners happy, and connecting guests with rental options in their location of choice.”
Short-term rentals have become the preferred travel experience.
Franchisees’ Earnings Potential
Franchisees receive a commission from every guest who books and stays at a property they manage. “Each franchisee decides his or her own commission rate based on factors specific to their territory and business; most SkyRun commission rates fall between 20% and 30%,” Krause says, “and franchisees may generate additional income by providing concierge services for guests and upselling packages of local activities on top of each booking.”
The SkyRun market is wide open, he says. “Short-term rentals are present in most markets today. Gone are the days of being limited to resort-only destinations. Some of the fastest-growing opportunities in this industry are in urban markets. This is because for many people — particularly in this post-pandemic era — short-term rentals have become the preferred travel experience.”
The Ideal SkyRun Franchisee
The best SkyRun franchisee is a self-starter who sets a high bar for customer experience. “There’s no one-size-fits-all background for a perfect franchisee, but there are several qualities that we find are common in our most successful franchisees. These individuals are ambitious, have the ability to deliver results independently, are passionate about delivering tremendous hospitality experiences, and are problem-solvers who can be adaptable and make effective, efficient decisions.
“Many franchisees come from corporate America, seeking refuge from the daily stress and struggles of their former work environment, but SkyRun has grown far and wide with the help of franchisees coming from all walks of life. Most simply want to become a part of a brand that’s leading the charge in one of the country’s fast-growing industries.”
Support from HQ and Other Franchisees
Franchisees can rely on stellar corporate support, he adds. “SkyRun offers a comprehensive franchise package that includes software, operational systems, marketing assistance, training, business coaching and so much more.
“But the greatest perk that SkyRun brings to the table for its franchisees, which wouldn’t be available were they to enter the vacation rental market on their own, is a proven and replicable business model. It includes not only the tools and support that come with one of the nation’s fastest-growing brands in the short-term industry, but also a direct pathway to success and a return on their initial investment.
“Joining a franchise also means joining a community of peers who are facing the same challenges, which can be a tremendous resource to avoid common mistakes and navigate business hurdles as the business grows and industry changes. It is wonderful to know that you are not alone when the unexpected happens, and being a part of a franchise means you are never doing it all alone.”
To learn more about opportunities with the SkyRun Vacation Rentals franchise, visit www.skyrun.com/franchising.
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