Why Some Investors Are Rethinking Traditional Real Estate
Short-term vacation rental investing can offer a blend of cash flow and flexibility that long-term rentals or REITs don’t. Instead of collecting rent once a month, investors have the potential to benefit from:
- Higher nightly income
- Flexible use (or resale) of the asset
- Greater control over operations
- Increased demand from high-income travelers
Platforms like Airbnb and Vrbo have expanded access; but access doesn’t always mean success. Outcomes and performance often depend on what you buy, where you buy it, and how it’s managed.
Location Isn’t Just About Popularity
The most booked locations aren’t always the most profitable. Sophisticated investors tend to look for:
- International demand drivers like luxury golf resorts, high-end marinas, or seasonal festivals
- Stable tourism growth backed by infrastructure investments
- Extended average stays, especially from affluent travelers
- Proximity to international airports for ease of access
Before investing, you may want to ask yourself: Is this a vacation destination, or a vacation habit for the wealthy?
Turnkey vs. DIY: The Management Gap
What is a common challenge faced by new operators? Underestimating the operational complexity.
Unlike long-term tenants, vacation renters often require:
- 24/7 guest communication
- Daily housekeeping
- Concierge-style services
- Pricing flexibility, booking efficiency, and positive guest experiences
Managing this yourself, especially in a foreign country, can erode margins—and peace of mind. That’s why some investors opt for fully managed properties that simplify operational responsibilities and reduce their direct day-to-day involvement.
How the Numbers Work: What to Watch
Short-term vacation rental returns are driven by a few critical metrics:
| Metric | Why It Matters |
| Occupancy Rate | % of days booked each year |
| ADR (Average Daily Rate) | Income per night booked |
| NOI (Net Operating Income) | Cash flow after expenses |
High-end vacation rentals in the Caribbean, for example, can command nightly rates of $1,800–$3,000 with year-round occupancy between 70–95%.[need a source] When professionally managed, such properties have the potential to generate meaningful NOI and returns for investors.
What to Know About International Vacation Rental Investing
For investors seeking global exposure, international vacation rentals can offer:
- Diversification outside U.S. markets
- Lifestyle alignment (own a place you’d actually want to visit)
- Access to undervalued or emerging tourism markets
What Investors Look for in a First Investment Offering
If you’re entering short-term vacation rental investing for the first time, we think these are factors worth considering:
- Is the property fully managed, with in-house operations?
- Is there demand data to support projected ADR and occupancy?
- Are the management incentives tied to performance?
- Is the deal structured for U.S.-based accredited investors, with proper documentation?
- Does it align with your investment goals—cash flow, lifestyle, or both?
How Bona Vita Properties Fits In
Bona Vita Properties is a global real estate investment firm that focuses in luxury short-term vacation rentals for accredited U.S. investors. With a refined, hands-off model for investors, they provide access to professionally managed international vacation properties that offer the potential for both income generation and alignment with lifestyle preferences
From sourcing to operations, Bona Vita is designed for investors who want exposure to select international vacation markets—without the burden of managing them.
Explore Bona Vita’s investment offerings by clicking on the button below.
Exclusively for verified accredited investors
Disclaimers
Investments in real estate are speculative and involve risk, including the potential loss of capital. This communication does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will be made only through a private placement memorandum to qualified accredited investors. Past performance is not indicative of future results. Investors should perform their own due diligence and consult with legal, financial, and tax advisors before making investment decisions.
These materials may contain “forward looking statements” and actual results may differ from any expectations, projections, or predictions made based upon such forward looking statements. Prospective investors are cautioned against placing undue reliance on such forward-looking statements. Securities are only available to verified accredited investors who can bear the loss of their investment.
Bona Vita Properties does not provide investment, financial, tax, legal or accounting advice. The contents of this blog have been prepared for informational purposes only, and are not intended to provide, and should not be relied on for, investment, financial, tax, legal or accounting advice. You should consult your own investment, financial, tax, legal and accounting advisors before engaging in any transaction, especially an investment in a cross-border transaction or a foreign property to fully understand the risks of investing.
