In May 2018, ThirdHome formally launched its new luxury home rental service. This expansion builds on its exchange program, which gave luxury homeowners the privilege to vacation in other owner’s homes in exchange for time in their properties.
A New Way for Luxury Home Owners to Benefit from Their Properties
Third Home started as a luxury home exchange service catering to affluent 2nd home-owners. The company recognized that many luxury homeowners never utilized their second homes fully and often sold their properties after just a few years.
Third Home first started as a service helping owners get the most out of their second homes by offering to exchange time in other homes for letting others stay in theirs. This gave them access to luxury vacation accommodations in some of the most spectacular destinations around the world for a minimal cost.
Having earned the trust of luxury homeowners worldwide, Third Home recently (May 2018) drew on the portfolio of properties it built through its exchange program to create its rental service. The company does not take commissions on properties rented out to the public. As a result, owners who sign their homes up to the new rental service enjoy improved utilization of their properties while also reaping incredible financial rewards.
Opening Exclusive Homes to the Public
While luxury homeowners stand to benefit from ThirdHome’s new venture, it offers a unique opportunity to the vacationing public as well. Many of the clients ThirdHome attracted through its exchange service included successful businessmen, musicians, actors, and athletes. Through its rental program, individuals and families that would never have had access to the luxury society’s elite enjoy, now have a chance to do so.
In the press release announcing the launch of its new service, ThirdHome stated the median value of the properties it offers for rent comes in at an astonishing $2.2 million.
To even be considered for a listing on ThirdHome, a property must be worth a minimum of $500,000. The company also meticulously inspects each property to ensure it meets its high standards for location desirability and furnishing quality. By booking their stay through ThirdHome, vacationers can expect accommodations in some of the most lavish mansions imaginable.
Incredible Variety at Affordable Fees
Vacationers considering ThirdHome as a rental option might be tempted to think the company’s offers come attached to proportionately lavish fees. However, a glance at some of the featured properties reveals an entirely different story.
Many of the properties in ThirdHome’s rental portfolio are available at affordable rates. An entire Greek seaside, hilltop villa with five rooms and space for 10 people might, for example, rent out for as low as $350 per night. Renting at full capacity, that works out to just $35 per person!
Other properties are available for considerably more, such as a Costa Rican rainforest villa sporting a $4,449-per-night rental price tag. When you factor in that it has 10 bedrooms and can sleep 24 people, however, it still works out to a reasonable price. If you can fill this house to capacity, it costs just $184 per person to rent it out.
Joining a Growing Rental Market
ThirdHome’s new rental offering allows it to compete directly with companies such as luxury offerings at Airbnb, VRBO, and Luxury Retreats. Offering the traveling public access to incredible mansions in breathtaking destinations at affordable prices already puts it head and shoulders above Airbnb and VRBO. Its curated offering allows Third Home to guarantee quality experiences neither of these two companies can match.
Against Luxury Retreats, Third Home competes by offering homeowners a far more favorable deal. Not only do owners gain financial rewards by renting out their properties, they also become enrolled in the exchange program in the process. Additionally, Third Home offers homeowners far more control over their properties by allowing renters to liaise directly with them.
Since Condotels can usually be rented out by owners (separate from the hotel rental program), it will be interesting to see if Condotel unit owners start placing their available time on Third Home.
Third Home definitely looks like a worthy entrant into the market, and time will tell if their approach becomes the winning formula to luxury homeowning and rental success.