Much like Uber is to the taxicab, or Netflix is to cable TV, InvitedHome is the maverick of luxury vacation rentals, not only revolutionizing how ultra-high-net-worth individuals spend their vacations, but changing the way they buy, rent, and maintain one of their greatest financial assets — second homes.
Between overseeing marketing for her company and preparing for an upcoming speaking engagement in San Francisco, Wendy Purvey — CMO of InvitedHome, and former CMO of Sotheby’s International Realty Affiliates for over 12 years — took time out of her busy schedule to help me answer the burning question that looms in every second home buyer’s mind: How can I make a vacation property work for me?
With the rise of home-sharing startups like Airbnb, VRBO, and InvitedHome, a new wave of homeownership has begun to take shape. “Now more than ever, people are seeking experiences over material goods, and spending more time and money on luxury travel,” says Purvey. “This presents a significant revenue generating opportunity for homeowners.”
According to Purvey, 26 percent of affluent travelers (with an income of $125K+ per annum) chose a vacation rental over a hotel or resort in the last two years. “It’s not about dropping your bags at a hotel anymore,” says Purvey. “It’s about the experience, the lifestyle, the memories. The income-potential is just the icing on the cake.” And Purvey is right – the latest reports suggest vacation rentals could overtake the hotel industry by 2020, with global vacation rentals projected to close $170 billion by 2019.
Additionally, luxury buyers are redefining what it means to vacation, and with that comes a desire for connectedness. “It’s the person who wants to make memories on the ski slopes with their kids. The business traveler who wants five-star service and the convenience of buying their own bottle of wine or cooking their own meals. It’s the corporate teams, the tech start-ups, and companies of all sizes, looking for a comfortable environment to bring people together and inspire creativity. Today, it’s all about connectivity, and elite vacation properties allow guests to connect in a way that hotels don’t.”
How does this impact homeownership and vacation-rental income in resort areas like Aspen, Vail, and Beaver Creek? People are starting to see the potential in rental income, and are looking for trusted partners to help them make the best financial decision. “Ultra-wealthy individuals realize there’s a significant cost to maintain a property, whether it’s homeowners association fees, property taxes, or general maintenance, and they want to offset those costs.” Purvey says. “At InvitedHome, we are catering to the high expectations of the luxury buyer, and distinguish ourselves by elevating the customer experience at every level. We help buyers and homeowners get more out of their investment through our strict vetting process, multi-point inspections, and more, to eliminate rental concerns.”
InvitedHome partners with trusted brokerages like LIV Sotheby’s International Realty, to help clients explore unique opportunities and investments. “With the unrivaled expertise of LIV SIR’s qualified real estate advisors, coupled with our rare combination of marketing, hospitality, and care, people have the potential to not only create wealth, but manage their investment with skilled personnel and trusted broker partnerships,” Purvey adds.
In fact, she points out that 89 percent of homebuyers in Vail were renters first. “This is a niche that buyers and real estate agents can no longer ignore,” she says. “We aim to educate both, from training on capital expenses, to customizing rental income based on an individual’s goals and needs.”
Like many who come to Colorado for its undeniable mountain charm and year-round recreation, Purvey got a taste for the Colorado lifestyle while setting up a number of successful real estate franchises across the state. She has since made Boulder her permanent home – an area prized for its dramatic Flatirons, snow-capped mountain views, miles of biking and hiking trails, and close proximity to world-class resorts.
Tucked in the foothills, just 30 minutes from Denver, Boulder is centrally located, offering acres of open space and a creative, laid back lifestyle. Over a dozen ski resorts and idyllic mountain towns sit within a short distance, affording executives like Purvey a chance to get away for a quick day trip or extended vacation not far from home.
It’s a classic case of “come for the adventure, stay for the lifestyle” that keeps Colorado’s resort market moving at a rapid clip — and it’s attracting savvy buyers and investors worldwide. “We are seeing a trend in resort towns like Aspen, Vail, and Telluride, where communities are beginning to ramp up events and promote year-round experiences that cater to the luxury buyer,” Purvey adds.
With 98 percent of luxury travelers valuing memories over purchases, things are looking up for homeowners eager to cash-in on their second home investment, without being bothered by the hassles of upkeep. The most significant piece to the puzzle is not only the opportunity for homeowners to generate supplemental income, but to expertly maintain their vacation home for both renters and future generations to come.