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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > has anybody heard of a vacation rental where the strata rents for you?
 
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SiGmA_X
May 3, 2004
SiGmA_X

skipdogg posted:

We vacation every summer in Orange Beach, Alabama and a lot of the condos there are setup like this. They come fully furnished, and people buy them, and then the property management company can rent them out when you are not using them. I'm not sure on the specifics on the financials of the property management renting the unit (how big of a cut they get, who is responsible for what, etc.) but I've heard of this arrangement before.

I have no idea how the 'investors' make any money on them, but we sure do like staying in their nice condo one week a summer. We usually stay at the Caribe, where a 4 bedroom condo can sell for 800K or so. HOA dues run ~900 a month, I have no idea how these guys get a ROI at all.
What do you pay for the rental period?

Perhaps it's not that the owners make money, but just reduce their vacation costs. It is quite likely that the ownership is not really a reduction in costs, but rather perceived costs, somehow, like timeshares. Without running the numbers or knowing the rental income rents, that is my assumption.

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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > has anybody heard of a vacation rental where the strata rents for you?