Buying A Vacation Rental Management Company Here In Florida

So having sold probably 75 of these things I thought I would compile some information for you buyers out there:  The following video gives you a brief overview of the industry here and the following stats are drawn from the Business Brokerage Press Guide.

Rules of Thumb:

40 to 45% of annual sales plus inventory

2.5 to 3 times SDE

3.5 to 4 Times EBITDA

Cost of Goods 60% –  includes credit back to wners on commissions

Payroll / Labor….low till you need staff – get past 40 homes you start staffing-  20% to 25% of sales

Occupancy Cost .05%

Profits 30%

 

Highly Sought for cash flow and growth…very scalable