Why vacation rentals?
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Build your real estate portfolio and participate in the high rental income from the rapidly growing short-term rental market.
“We think anyone who enjoys staying at an Airbnb or VRBO as a traveler should also have a pathway to becoming an investor in these types of properties.”
Ryan Frazier
Co-founder & CEO
Our goal has always been to democratize access to the wealth-building potential of real estate investment. Arrived's expansion into vacation rentals is another great step in the right direction toward fulfilling that vision.
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Short-term rentals have historically shown high returns and the market is growing as domestic travel patterns change and more people choose to stay in vacation homes. The cost of purchasing a home and the time, effort, and expertise needed to run a successful rental property has traditionally put this out of reach for the average person.
That's why we are adding this exciting new asset class to our platform. With Arrived anyone can buy shares in income-producing rental properties starting at just $100. Arrived takes care of all the real estate operations so that investors can sit back and collect net rental income and their share of the home's appreciation.
Short-term rentals have historically shown high returns and the market is growing as domestic travel patterns change and more people choose to stay in vacation homes. The cost of purchasing a home and the time, effort, and expertise needed to run a successful rental property has traditionally put this out of reach for the average person.
That's why we are adding this exciting new asset class to our platform. With Arrived anyone can buy shares in income-producing rental properties starting at just $100. Arrived takes care of all the real estate operations so that investors can sit back and collect net rental income and their share of the home's appreciation.
$13B Market
US vacation rentals are currently a $13B market & expected to reach $20B by 2025, +53% growth!1
High Revenue
On average, a full time vacation rental can generate up to 130% more revenue than a traditional long-term rental*.2
Growing Trend
Work-from-home flexibility & increased business + leisure travel have raised the average stay from 3.5 to 4+ nights from 2019 through 2021.3
Vacation Rentals
Vacation rentals in destinations like Nashville & Orlando have tremendous income potential. Why? Owners can charge higher, competitive nightly rates than they could for a long-term rental property. On average, a full-time vacation rental can generate up to 130% more revenue than a traditional long-term rental.
The total vacation rental market in the United States accounts for over $13B in revenue in 2022 alone. That market size is expected to reach $20B by 2025. A +53% growth in market size means there will be plenty of demand from travelers choosing vacation rentals for the next few years.
Vacation rentals may have more significant income potential, but that income may not remain consistent. The reason? It’s a highly seasonal market. Vacation rentals are most active during their peak seasons, like summer and around the holidays. Less active periods will incur more vacancies and produce less income.
Rental Homes
That’s right! Since long-term rental properties are leased to long-term tenants for long periods, it means no fluctuating income. The result? Steady, consistent income and cash flow.
It can be costly to maintain the upkeep and bookings of short-term rentals. Long-term rentals, however, are usually cheaper for the owner to maintain. The savings add up over time. Plus, you get complete control over tenant screening. Most property owners hire a property management company to help with this process.
Rental homes on the Arrived platform receive the tax benefits of being structured as a REIT. So when a property is sold, there are capital gains taxes instead of ordinary income. Additionally, REITs can use a qualified business income deduction, which lowers taxable income by 20%.
Arrived partners with the best vacation rental partners in each market
Misfit Homes
Misfit Homes is a vacation rental company based in Nashville, TN, specializing in what they refer to as “fun luxury stays”. Each Misfit Home is decorated with high-end furnishings, Music City inspired art, and spaces designed to elevate your stay to a uniquely memorable experience. When you stay at one of these homes, you know you will be treated to thoughtful and fun amenities, such as skyline views, games, and karaoke rooms. Stand Out and Stay In with Misfit Homes.
Alpha Geek Capital
Tony J. Robinson is the founder and managing partner of Alpha Geek Capital. He's widely regarded as one of the leading experts on investing in Short Term Rentals. He's the co-host of the BiggerPockets Real Estate Rookie Podcast, a top business podcast with over 11,000,000 downloads. He and his wife, Sara, run the Real Estate Robinsons YouTube channel, with 25,000 subscribers. Along with his partners, he's created a strong track record of creating solid returns within the short term rental asset.
Old Town Rental
Ric & Jen, founders of Old Town Rental, have traveled the world from Tulum to Germany and have come to the conclusion that immersing fully in a destination is the foundation of an incredible experience. With this in mind, they run a boutique-on-purpose operation, and this is how they have built their portfolio of amazing Arizona properties, with no interest in scaling beyond their reach, Ric & Jen are personally involved in managing every property on their platform.
Roseus Hospitality
Roseus is redefining hospitality within the vacation home rental market. Through exemplary guest service standards, Roseus Hospitality Group offers our owners and guests the service experienced at a luxury hotel. Personalized service, adaptability, and socially-conscious management elevate Roseus from its peers and cements its status as the Modern Mark of Hospitality™. Property management clients relax knowing RHG is generating revenue and caring for their most valuable assets. Additionally, a portion of all rental proceeds are donated to a local charity allowing our owners and guests to vacation for good.
Southern Comfort Cabin Rentals
Southern Comfort has over 10 years of experience managing cabins in the Blue Ridge region. they have a fully in-house dedicated team covering everything from maintenance to cleaning and everything in between. With 70% of their reservations handled through direct bookings, it’s clear the experience they provide is one-of-a-kind.
Techvestor Labs
The Techvestor team is comprised of members who were all acquiring, designing, and operating short-term rentals before joining forces to supply optimal outcomes for their clients. They are experts in rehab, design & furnishing to maximize revenue and ensuring a top-of-the-line experience for guests as soon as they enter the home.
https://hoteltechreport.com/news/vacation-rental-industry-stats#:~:text=The%20US%20vacation%20rental%20industry%27s,faster%20in%20the%20coming%20years
Based on $4,666 average monthly revenue for a full-time vacation rental according to Airdna and $2,031 average monthly income in July 2022 for a rental home according to Zillow Data
https://news.airbnb.com/wp-content/uploads/sites/4/2021/05/Airbnb-Report-on-Travel-Living.pdf