Intelligent investors have always understood that real estate is, historically, the most reliable and consistent asset. However, depending on market conditions, varying real estate investment tactics emerge as the most optimal to maximize returns. This is especially true in the current market environment as mortgage rates have climbed to a 16-year high, increasing monthly carrying costs for investment properties along with it. This increased cost hurts the viability of a real estate investment. Even luxury homeowners who are not investors and are simply looking to sell their homes are having a difficult time selling at their desired price point in this market. These investors and homeowners are looking for creative ways to minimize losses and turn their properties into the profit-generating assets they should be.
While there has been a recent increase in the supply of luxury homes offering short-term rentals, the demand for this service as well as the infrastructure to implement it has not been available. The target demographic for a short-term luxury home rental – an individual in the 1% of wealth brackets – has typically opted for extended luxury hotel stays due to the convenience of the amenities and concierge services. Of course, luxury real estate owners and investors have rented out their homes in the past, these properties are hardly suitable for an extended stay; outside of the grandeur of the home, they are lacking in quality hospitality comforts and customer services that are standard in 5-star hotels. Simply put, luxury hotels have rendered the market for short-term luxury rentals ineffective due to their historically better amenities, logistics, and luxury concierge. However, over the last few years, this phenomenon has been changing.
The short-term luxury home rental market started picking up speed pre-Covid-19 as quality companies emerged in the space to fill the need. Since the onset of the pandemic, however, there has been a dramatic increase in the demand for wealthy individuals to rent out luxury homes in place of hotels. The timing of the emergence of new companies intersected with externalities resulting from the pandemic harmoniously as these high-net-worth individuals were looking to isolate themselves in ways not possible at a hotel with many people. While this trend blossomed during the pandemic, it has continued to thrive post-pandemic as these clients have grown fond of the coziness, uniqueness, and privacy offered by staying in a luxury mansion instead of a hotel while traveling for work or pleasure. The stickiness of this trend, however, has been a direct result of the competency of these new ventures and their ability to thread the needle on facilitating amenities, conveniences, services, and experience on par with the best 5-star hotels in the world like the Randolph, the Peninsula, the Ritz, and the Plaza. It should come as no surprise that the services offering rentals in the nation’s top tourist destinations for luxurious and exclusive experiences – like Los Angeles, New York City, and Miami – are the companies driving the success of this trend as well as benefiting the most. Los Angeles has separated itself from the pack with a strong draw for leisure and entertainment as well as the logistical necessity for high-profile individuals to travel there for work and networking.
Million Dollar Luxe is the premier short-term luxury rental service based in California and focusing on the greater Los Angeles area. Million Dollar Luxe is the top white glove service curating luxury homes for a growing number of high-profile and high-net-worth individuals looking for short-term rentals and hotel alternatives in Los Angeles’s top neighborhoods like Beverly Hills and more. While Million Dollar Luxe entices renters with the most comprehensive and exclusive roster of luxury mansions in Los Angeles, the MDL team is securing lifelong clients due to its unparalleled concierge services and its unique ability to transform a property into a home fit for short-term luxurious living. As Million Dollar Luxe rapidly becomes the industry standard, luxury real estate owners and investors are increasingly opting to rely on MDL’s end-to-end services to deliver reliable returns while avoiding the challenges common to the short-term rental industry.
The Million Dollar Luxe concierge service is as comprehensive as it comes. Renters can use the service to facilitate luxury experiences, – such as private chefs, in-house entertainment, and reservations at top restaurants & clubs – luxury travel accommodations, – such as sports cars, helicopters, and yachts – as well as various private logistical services – such as translators, nurses, and security. With experience renting and catering to highly-particular celebrities, athletes, musicians, business moguls, and even international royalty, Million Dollar Luxe understands how to dynamically respond to the wants and needs of this type of clientele. From specific flower requirements to specific food accommodations, no request goes unfulfilled. This type of understanding and customer service can only be developed through the type of practical experience that the Million Dollar Luxe team has garnered by working in that network. While these high-profile renters can find luxury homes anywhere in the world, they cannot find services comparable to that of Million Dollar Luxe.
Additionally, Million Dollar Luxe has quickly garnered a reputation for its ability to maintain the coziness and charm of a home while elevating the amenities and feel to that of a 5-star luxury hotel. While some vacation rental services believe that they can lean into the appeal of the home and overlook other aspects of the rental experience like lavish toiletries, fancy amenities, and other essentials, Million Dollar Luxe goes above and beyond on this front. Most of these properties are not equipped for somebody to walk in with a couple of suitcases and feel comfortable as many of them are furnished with personal items or are staged to sell and not to live in. The Million Dollar Luxe team expertly implements protocols to convert luxury mansions into a neutral environment that is suitable and desirable for short-term rentals by affluent individuals of varying backgrounds. Sometimes this involves minor repairs, purchases, and redecoration, while other times The Million Dollar Luxe team completely remodels the home. This unique differentiator, coupled with MDL’s concierge services, is precisely why their properties are favored by those looking for short-term luxury rentals.
By threading the needle on the infrastructure to facilitate high-quality short-term rentals in luxury properties and to maximize investor ROI, Million Dollar Luxe has completely opened up the market for real estate owners and investors to rent out luxury homes in their portfolios. Million Dollar Luxe’s ability to help these high-net-worth individuals forget about the headache of high mortgage rates and carrying costs plaguing the current market with high returns has spread throughout these high-profile networks like wildfire. Many wealthy people, celebrities, and real estate investors understand the potential value of short-term luxury rentals but have been burned by poor experiences with other services and platforms in the past. From lack of security to care to profits many of the other players in the space are not suited for the types of properties, the Million Dollar Luxe team deals with. This is precisely why they pride themselves on their investor management processes and tactics. Similar to understanding how to deal with high-profile renters, this high-level understanding of how to deal with affluent real estate owners and investors – many of which are celebrities themselves – only comes with the type of experience Million Dollar Luxe has. The Million Dollar Luxe team treats these investor relationships with the utmost care. Million Dollar Luxe’s consistent track record, brand quality, and experienced team have enabled these real estate owners to feel confident that their homes will be secure, furnished tastefully, and managed transparently in a way that accurately reports profits and facilitates future earnings. This has not only helped Million Dollar Luxe scale its business, but it has also increased the supply of homes to match the growing demand of renters.
Simply put, without Million Dollar Luxe’s top-tier inventory of luxury mansions, commitment to providing quality hotel-level standards, and ability to deliver returns, the short-term luxury rental industry would not have developed into the behemoth it is today. To this point, many of the top luxury properties in Los Angeles are exclusive to Million Dollar Luxe as owners notice a major difference in profit as well as satisfaction from their renters when MDL facilitates the rental compared to other competitors. Further speaking to Million Dollar Luxe’s brand name and standard in the industry, the company has consistently been one of the top suppliers for AirBnB’s luxury vacation rental service, AirBnB Luxe (previously known as luxury retreats).
Marina Drabkin, founder and CEO of Millon Dollar Luxe, is an expert and thought leader in the luxury short-term rental industry. While the wealthy individuals who own luxury properties are typically intelligent business people, many of these individuals have struggled to turn their idle and costly high-value assets into profit-generating investment properties. These owners and investors are relying on Drabkin’s concierge, furnishing, relationship, and pricing skills to facilitate these profits via consistent short-term rentals. Particularly in these market conditions, Drabkin’s and her team’s expertise is more valuable than ever to luxury real estate owners and investors.
Speaking on the benefits of short-term luxury rentals, Drabkin states, “Every wealthy person that I know rents their houses. Do these executives and celebrities need to rent out their homes? Of course not. However, for those who know how to find the market and deliver quality, the opportunity is too great to ignore. While it may be shocking for the average reader to learn, this is exactly why so many high-net-worth individuals are renting their homes. They are making too much money to stop.”
We expect big things from Million Dollar Luxe in the near and long term as the team is doubling down on its digital footprint to further grow its reach beyond its network of word-of-mouth referrals. To learn more about Million Dollar Luxe’s properties and process, please visit their website and Instagram.
