Frequently Asked Questions…
Can you explain Triangle Luxury in simple terms?
Triangle Luxury is a closed marketplace that enables private investors, family offices and real estate funds to browse, inquire, and invest in some of the world's most desired and high-yielding real estate: luxury vacation rentals.
These properties are published directly by vacation rental property managers who can now use Triangle Luxury digital platform to present the properties that are for sale amongst their collection. They’re mainly off-market as the property manager is usually the first to know when a property goes on sale.
Investors have access to the yield of each property based on the property management’s history of bookings, as well as photos, floor plans and drone videos. They are able to perform a lifestyle search and compare different markets in different countries.
Once they’re ready to dive into the sales process more, Triangle Luxury gives investors access to in-destination experts on taxes, legal and financing strategy. Before closing the sale they also have the possibility to stay in the property and gain the guest’s perspective.
These properties are published directly by vacation rental property managers who can now use Triangle Luxury digital platform to present the properties that are for sale amongst their collection. They’re mainly off-market as the property manager is usually the first to know when a property goes on sale.
Investors have access to the yield of each property based on the property management’s history of bookings, as well as photos, floor plans and drone videos. They are able to perform a lifestyle search and compare different markets in different countries.
Once they’re ready to dive into the sales process more, Triangle Luxury gives investors access to in-destination experts on taxes, legal and financing strategy. Before closing the sale they also have the possibility to stay in the property and gain the guest’s perspective.
What gap did you see in the short-term rental marketplace?
Triangle Luxury is the brainchild of the owners of Smiling House Luxury, a company specializing in renting luxury vacation homes worldwide.
With over 6000 properties and 10 years of experience, Smiling House is a leading OTA for luxury short-term rentals.
They understood that for many years, STR professionals around the globe were exposed to opportunities in the real estate world but didn’t have the tools or platform to take advantage of these opportunities, and share their knowledge and experience.
In the last 2 years, Smiling House facilitated the sale of 6 luxury properties worth $25M, and most of them to previous staying guests. The experience gained through these sales gave the idea of the Triangle Luxury platform, to help other property managers, to benefit from a property sale and remain operating it.
With over 6000 properties and 10 years of experience, Smiling House is a leading OTA for luxury short-term rentals.
They understood that for many years, STR professionals around the globe were exposed to opportunities in the real estate world but didn’t have the tools or platform to take advantage of these opportunities, and share their knowledge and experience.
In the last 2 years, Smiling House facilitated the sale of 6 luxury properties worth $25M, and most of them to previous staying guests. The experience gained through these sales gave the idea of the Triangle Luxury platform, to help other property managers, to benefit from a property sale and remain operating it.
How do investors work alongside property managers?
Once the investor has set his eyes on a property and is seriously considering purchasing it, he sets up a zoom call with the Triangle Team and local experts. Investors get all the extra needed information about the home, the yield, the potential investment, renovation if required and extra benefits that the property may have. Investors can invite advisors or co-investors from their side and specify ahead the topics they would like to discuss.
Triangle’s local professional advisors will join the call and highlight tax and legal topics.
Next step, Triangle will organize the viewing of the property. The investor can also request to stay at the property, to experience it as a guest and take time to “feel it” before buying it.
Finally the investor will have meetings with local banks and a notary, and of course the property manager. As part of the closing of the deal, the new owner signs a contract with the property manager ensuring that the rental starts generating revenue from day 1.
Triangle’s local professional advisors will join the call and highlight tax and legal topics.
Next step, Triangle will organize the viewing of the property. The investor can also request to stay at the property, to experience it as a guest and take time to “feel it” before buying it.
Finally the investor will have meetings with local banks and a notary, and of course the property manager. As part of the closing of the deal, the new owner signs a contract with the property manager ensuring that the rental starts generating revenue from day 1.
Why is it important to put the property manager at the core of the real estate deal?
Until now, property managers had no easy way to participate in real estate deals. Yet they have always been the first to know when an owner decided to sell and this usually resulted in loss of business.
On the other hand, investors buying vacation rental real estate need to search for local property managers to operate their new acquisitions, a process that takes time and is challenging in terms of who to trust. This is an even greater challenge when buying property internationally.
With Triangle Luxury, the property manager is at the core of the real estate deal: it is the first real estate marketplace based on the trust between property managers and property owners, a unique connection which can be “sold on” to the new owners. This trust is backed by hard facts in terms of the proven yield records of each asset.
On the other hand, investors buying vacation rental real estate need to search for local property managers to operate their new acquisitions, a process that takes time and is challenging in terms of who to trust. This is an even greater challenge when buying property internationally.
With Triangle Luxury, the property manager is at the core of the real estate deal: it is the first real estate marketplace based on the trust between property managers and property owners, a unique connection which can be “sold on” to the new owners. This trust is backed by hard facts in terms of the proven yield records of each asset.
What makes Triangle Luxury’s model unique for investors? And for property managers?
First and foremost, on no other platform can investors get in touch directly with the source of income: the property manager. And on no other platform can the property manager securely benefit from a sale of their own inventory.
Our search functionalities have been devised with two types of investors in mind: for lifestyle private investors a search based on activities and dream locations, for family offices & real estate funds a financial tool to secure the best investment opportunities. All investors can compare markets, using criteria such as yield, property amenities and the proven track record of bookings. This is unique data not available elsewhere.
Triangle Luxury is also a screening tool, ensuring all players can trust each other. Property managers and investors are going through a thorough due diligence before being granted access. We’re also currently building connections to vacation rental PMS which would allow us to import all past bookings into the platform as an extra due diligence feature.
Our search functionalities have been devised with two types of investors in mind: for lifestyle private investors a search based on activities and dream locations, for family offices & real estate funds a financial tool to secure the best investment opportunities. All investors can compare markets, using criteria such as yield, property amenities and the proven track record of bookings. This is unique data not available elsewhere.
Triangle Luxury is also a screening tool, ensuring all players can trust each other. Property managers and investors are going through a thorough due diligence before being granted access. We’re also currently building connections to vacation rental PMS which would allow us to import all past bookings into the platform as an extra due diligence feature.
How do you evaluate properties?
When a property manager is uploading a new home for sale in Triangle Luxury, it is first submitted for approval. The Triangle Luxury team is analyzing all data including the price, relevancy, yield before approving it to be live on the platform.
Properties need to have at least $1M sales price although we have made some exceptions for spectacular city apartments. Today the average sales value of our properties is $3M and the average cash-on-cash yield is 15%.
It is important to note that, outside of the US, the price of most luxury properties for sale are hidden and on request only. Thanks to our closed network, investors will have immediate access to the price.
We do accept a number of newly built properties and properties which have not yet been operated as vacation rentals. These are matched with local property managers who then prepare a forecasted yield.
Properties need to have at least $1M sales price although we have made some exceptions for spectacular city apartments. Today the average sales value of our properties is $3M and the average cash-on-cash yield is 15%.
It is important to note that, outside of the US, the price of most luxury properties for sale are hidden and on request only. Thanks to our closed network, investors will have immediate access to the price.
We do accept a number of newly built properties and properties which have not yet been operated as vacation rentals. These are matched with local property managers who then prepare a forecasted yield.
What are your “in-destination experts”?
Buying properties internationally is complicated. Local laws, residency permits, financing, insurance… Our clients have many questions that only in-destination experts can answer. This is why Triangle Luxury has built a community of knowledge where lawyers, tax advisors, accountants and even real estate agents can contribute to provide the answers needed. These specialists are invited to the initial zoom calls where investors, property managers and Triangle Luxury are present and can be then contracted by the buyer to provide further services.
How have you seen investment in short-term rentals change since the pandemic?
We have seen an increase in the interest of institutional investors to diversify their portfolio with luxury rentals, including witnessing a fund recently investing $500M in a property management company.
Luxury short-term rentals specifically are pandemic-resistant and with inflation rising, consumers may be priced out of buying homes and turn to longer stays in STR instead.
Our own network of property managers has reported a sharp increase in guests, real estate investors and real estate agencies approaching them to buy properties in their collection. Properties which they saw were generating constant cash flow. What was missing was the bridge between the vacation rental industry and the real estate world. This is why they are welcoming our solution and in a few short months we have amassed $700M worth of vacation rentals for sale.
The timing is right for the Triangle Luxury solution.
Luxury short-term rentals specifically are pandemic-resistant and with inflation rising, consumers may be priced out of buying homes and turn to longer stays in STR instead.
Our own network of property managers has reported a sharp increase in guests, real estate investors and real estate agencies approaching them to buy properties in their collection. Properties which they saw were generating constant cash flow. What was missing was the bridge between the vacation rental industry and the real estate world. This is why they are welcoming our solution and in a few short months we have amassed $700M worth of vacation rentals for sale.
The timing is right for the Triangle Luxury solution.
Why are investment marketplaces focused on rentals gaining traction?
We believe these marketplaces are gaining traction because they make the transaction accessible, cost-effective and simple. The whole STR industry is becoming more and more professional but the real estate element was not, until now, part of the equation. Trust is a massive challenge however which is why putting the property manager, not the real estate agent, in the foreground is vital. This is our USP and why investors choose to use us as their go-to partner for luxury real estate investment.
Surely we will see more platforms emerging yet the luxury world is difficult to enter which is why we feel pretty secure in our positioning.
Surely we will see more platforms emerging yet the luxury world is difficult to enter which is why we feel pretty secure in our positioning.