7 Features That Matter More Than the Vacation Home Itself

There is no great mystery to the appeal of luxury vacation home ownership. It can be found in the timeless delight of shady olive groves in Tuscany or cozy nights by the fire in Aspen. It’s reflected in the opportunity to enjoy stunning mountain views or catch a San Diego sunset, enjoy golf and fine dining in Los Cabos, or simply relax in the comfort of a well-designed home.

But location, amenities, and floor plans are only part of the overall vacation home ownership experience. There are other factors to consider when planning a vacation home investment, such as property management, ease and flexibility of access, and the design of the ownership structure.

This article looks beyond location and architecture to highlight other potential features of luxury vacation real estate investment that can positively impact your ownership experience.

Reservation Flexibility

Accessibility is an important element of luxury vacation home ownership. Not every owner chooses to buy a single property over which they have exclusive control. An abundance of vacation home investment models facilitate fractional, shared, or partial ownership of one or several properties. These models typically manage access through a system of earned availability based on the scale of your investment.

As such, it’s important to consider not just the ownership structure but also the details of the system that governs how (and how often) you can access your property or properties. How are reservations managed? What sort of planning is required, and to what extent can the ownership model accommodate different trip lengths, seasonal travel issues, and any last-minute adjustments to your schedule?

For example, the Equity Estates portfolio ownership model offers investors exclusive access to Equity Estates Fund properties. This access is managed primarily through the Voyager app, an at-your-fingertips app for checking availability and scheduling trips. The system allows you to book two-night minimum stays for quick getaways, and investors can add unlimited additional night access in properties that are not in immediate high demand. 

Further, the Equity Estates model is deliberately managed at a (max) 60% occupancy rate, maintaining a level of availability across the entire portfolio of 65+ properties in 25+ countries. This stands as an example of an ownership model built around the understanding that travel needs and preferences change and investors benefit from a system that prioritizes flexibility.

Access to More Than One Destination

Some investors identify a dream home and focus attention and resources on securing that ideal property. Others prefer not to be tied to a single destination. In the latter instance, investors are often looking for ownership models that can accommodate a wide variety of trips, to different destinations, in different seasons, and for the celebration of different stages of life.

Equity Estates Fund Investors, for example, have exclusive access to a portfolio of more than 65 luxury vacation homes spread across more than 25 countries. This provides for a broad range of potential trips and experiences, ranging from Caribbean beach getaways to mountain retreats and city breaks in some of the world’s great metropolitan centers. 

Professional Property Management

Owning a home means taking responsibility for its upkeep. In the case of a vacation home, this doesn’t just mean a second set of repairs, renovations, tax and utility payments, and landscaping concerns. It often means managing all of those responsibilities at a distance, or in the relatively short periods of time you can spend in the property. 

Professional property management eases that burden. For some investors, this service makes a world of difference between being able to enjoy using a property and being overwhelmed by administrative tasks. And if your ambition is to have more than one luxury vacation home to visit, operational simplicity becomes even more important.

Properties in the Equity Estates Fund are supported by the full-time Home Asset Management Team that manages the day-to-day needs of the entire portfolio, from acquisition through upgrades and maintenance to liquidation. 

Alignment Between Investors and Management

Investors understandably tend to focus on the more visible aspects of luxury home ownership, such as the property itself, its location, or available amenities. But successful luxury real estate investment also relies on strong relationships between investors and those managing assets on their behalf.

If the ownership model you are considering involves a layer of management, think about how your interests align with those of management. Shared interests, transparency, and accountability are less visible but vital components of an investment model.

For example, Equity Estates Fund portfolios are managed according to a simple priority: investors come first. The liquidation of an Equity Estates Fund always prioritizes the return of 100% of investors’ original contributions. For management to receive compensation from asset liquidation, investors must first receive their original contribution back in full and their share of any proceeds from appreciation.

A Thoughtful Approach to Occupancy

Luxury vacation real estate investors are also well advised to consider what happens to their properties when they are not staying in them. Investment models that support multiple owners of multiple properties are not necessarily aligned with ideals of stewardship or sustainable management of a property. If a model is intended to maximize the occupancy of a property, then it’s likely to encourage near constant use of the vacation home. In turn, this can impact your experience in the home. Overuse leads to excessive wear and tear and impacts availability.

Consider models that align occupancy goals with investor interests. For example, Equity Estates Fund portfolio properties are intentionally maintained at a 60% occupancy rate. In practice, that means that if every Equity Estates Investor used their maximum allocation of nights, the portfolio occupancy rate would be around 60% (currently, it would be 57%). This contributes to a general availability of options across the portfolio, insulates the properties against overuse by affording each time for renovation and improvement, and helps keep properties in prime condition for eventual sale.

Support Before and During the Stay

Luxury vacation ownership is not just about access to a particular home. Increasingly, luxury vacation real estate investment prioritizes overall experience over a single feature or attraction specific to a destination. Investors are looking for memorable, enjoyable experiences, with minimal difficulty planning and executing their preferred travel investment strategies.

A dedicated Vacation Concierge Team meets these needs. Equity Estates Fund Investors are supported from the moment they book a trip. A Vacation Concierge Team helps with planning activities, prepares the property for investors’ arrival, and coordinates with the Local Host, daily housekeeping, and any relevant local service providers. This gives investors more time to enjoy their trips and eliminates the burden of managing and coordinating the administrative elements of the experience.

A Clear Long-Term and Exit Strategy

Last but not least, prospective luxury vacation real estate investors should give some thought to the complete lifecycle of an ownership model. Investments are among the few relationships that one is well advised not to start without a clear idea of how they might end. Some investments are open-ended; others have a defined exit strategy. Knowing how you expect your investment to develop over time is essential to assessing how well it might meet your needs.

For example, Equity Estates Fund Investors make a contribution to a real estate portfolio with a set liquidation date (usually about 10 years after the Fund is opened). This immediately sets the overall terms of an Equity Estates investment: there is a defined timeline for the investment, a clear goal (liquidation after 10 years), and a clear understanding of what you might reasonably hope to gain from the experience.

The Best Vacation Ownership Experience Goes Beyond the Home

Exceptional properties and attractive locations will always be at the core of luxury vacation ownership, but the seven considerations detailed above are also important components of a luxury real estate investment experience. They determine how flexible, convenient, and enjoyable luxury vacation ownership is for you over time.

The Equity Estates Fund portfolio ownership reflects a guiding philosophy grounded in the belief that investors benefit when they can enjoy thoughtfully designed ownership experiences alongside exceptional homes and destinations.

Travel with Equity Estates for a unique and memorable experience. If you would like more information about investing with Equity Estates, please reach out to our Investor Relations Team at 404.445.8501 or click to schedule a call. Download our Executive Summary.