Fractional Ownership Platform August Launches Portfolio of Ultra-Luxury Homes in Europe
- Luxury holiday home co-ownership platform August has launched its Prime Collection, a curated portfolio of ultra-luxury homes in Europe’s most coveted destinations, like Tuscany, the French Alps, South of France, and Mallorca.
- Buyers can co-own shares starting at €1.4 million, which offers access to €22 million worth of real estate for an average of 12 weeks access annually across the portfolio.
- These homes include standout amenities like private gyms, wellness centers, and entertainment spaces.
- August manages every aspect of the process, from acquisition and renovation to interior design, maintenance, and property management, ensuring a seamless and stress-free ownership experience.
- August also integrates curated cultural experiences into the package, owners gain access to events such as Wimbledon invites, Porsche road trips in Tuscany, and local adventures.
About August
August is a full-service, integrated real estate development and lifestyle company specializing in luxury holiday home co-ownership. It enables families to co-own a curated collection of five meticulously designed holiday homes in Europe’s most sought-after destinations, including the Alps, the French Riviera, Tuscany, the Cotswolds, Mallorca, London, Paris, Barcelona, Cannes, and Rome.
Snigdha’s View:
Pros and Cons for Professional Property Managers
Pros
- Continued Demand for High-End Experiences: Travelers are still booking expensive accommodations, highlighting the ongoing opportunity in the luxury segment.
- Portfolio Expansion Opportunities: Platforms like August offer potential partnerships for managing high-end homes, increasing portfolio diversity and revenue streams.
- Enhanced Expertise Utility: Your management skills in high-end properties could make you a valuable partner for co-ownership platforms, aligning with their service needs.
- Demand for Luxury Travel: The current trend reflects a preference for high-end experiences, which can be leveraged to attract affluent travelers and investors.
Cons
- Economic Sensitivity: High-end travel demand might weaken if economic conditions worsen, impacting revenue potential.
- Complexity of Fractional Ownership: Fractional ownership can be difficult to sell, posing challenges for investors and property managers tied to such models.
- Limited Financial Growth: Many fractional ownership models focus on lifestyle benefits rather than financial returns, potentially leading to lower financial gains.
- Market Vulnerability: Luxury property markets are susceptible to economic downturns, which can reduce the value of fractional shares and rental revenues.
- Financial Risks in Partnerships: Investing in platforms like August requires careful evaluation of costs, returns, and track records, with potential risks if these aspects are not favorable.
Rentals United Launches Screen & Protect to Simplify Property Damage Protection
- Rentals United, a vacation rental channel manager platform, has introduced Screen & Protect, a property protection tool designed to simplify damage claims and eliminate the need for traditional security deposits.
- This service pre-screens guests during the booking process, providing up to €50,000 in damage coverage while ensuring a smooth, guest-friendly experience.
- It’s currently available in markets such as the UK, France, Spain, and Australia and with plans to expand further.
- The tool is designed to offer property managers a more seamless way to manage guest-related risks while potentially increasing bookings by eliminating upfront deposits.
About Rentals United
Rentals United, founded in 2015, is a channel management platform designed for vacation rental property managers. It provides a cloud-based system to centralize property information and automate updates across various listing sites. Rentals United supports marketing, distribution, and operational needs in the vacation rental industry.
Snigdha’s View:
- Guest-related damages are one of the most persistent challenges faced by property managers. It’s not just limited to the financial loss; it also involves operational strain.
- According to Rentals United, the service was developed in response to findings from their global survey of property managers, conducted across 11 countries that revealed that 90% of property managers have dealt with guest-related damages, with many having managed three or more incidents in the past two years.
- For property managers, particularly those handling larger portfolios, managing claims is often a lengthy process that involves navigating disputes, negotiating with guests, and reconciling with insurance companies.
- The pre-screening aspect of Screen & Protect helps minimize damage risks by verifying guests before check-in, allowing property managers to identify potential issues early.
- While it’s a proactive step, it doesn’t guarantee against damage. Managers should complement it with strong guest communication and clear property rules to further reduce risks.
- The tool excludes cosmetic damages and wear and tear, common in vacation rentals, so managers should clearly understand coverage limits to avoid surprises during claims.
Madrid’s Latest Effort to Curb Short-Term Rentals with the New “Plan Reside”.
- Madrid has announced sweeping new regulations for short-term tourist apartments (Viviendas de Uso Turístico – VUTs) with the unveiling of Plan Reside on November 14.
- Under the new plan, VUTs are permitted only in buildings dedicated exclusively to tourist accommodation in the historic center, as existing licensed rentals, or outside the historic center with separate entrances.
- The plan seeks to address depopulation in the city center, increase residential housing availability, and regulate tourism to ensure the balance between visitors and residents.
- This plan replaces a previous 2019 regulation that allowed VUTs on the ground floors of residential buildings in the historic center, which critics say failed to curb illegal holiday rentals effectively.
- This announcement follows earlier actions by the Madrid City Council, including a temporary suspension of new holiday rental licenses in April, increased fines for unlicensed rentals, and an official list of all licensed tourist properties.
- Plan Reside is expected to take effect by August 2025, following a public consultation period and final approval.
Snigdha’s View:
- Cities across the Iberian Peninsula continue to tighten regulations on short-term rentals.
- In Lisbon, residents are pushing for a referendum to ban short-term rentals in residential buildings, aiming to eliminate nearly 20,000 vacation rentals and make more housing available for residents.
- Barcelona’s mayor has unveiled a plan to eliminate 10,000 tourist rental properties by 2029, beginning with a halt on new licenses and the non-renewal of existing ones starting November 2028, inviting criticism from Airbnb and a formal complaint by the European Holiday Home Association (EHHA) European Commission challenging the regulations.
- Meanwhile, France’s new law introduces stricter regulations, including reduced tax benefits for hosts, a 90-day annual cap on primary residence rentals, and stringent energy efficiency standards for properties.
- To tackle these restrictions, property managers should stay informed and work with legal advisors or local communities to stay compliant.
- In stricter areas, diversifying properties in less regulated locations could be a smart strategy.
