Dear VRMA Members,

• Transparency
• Increased financial oversight
• Control of the organization by the membership through their elected Board of Directors
• Plan and implement initiatives to undertake the biggest challenge our industry…AWARENESS OF VACATION RENTALS
• Increase services to, and value of, membership
• Continue to focus and improve on educational opportunities provided by the association

          While there is still much to do in the furtherance of meeting these goals, the following summarizes the work undertaken thus far in achieving them.  By category as defined above these summarized initiatives/methods are as follows:

• New bylaws were drafted by the Bylaws Committee consisting of Betsy LaBarge and myself.  This draft set of bylaws was then posted on the VRMA website for an extended public comment period during this past summer.  Several members offered comments and suggestions which were considered by the Bylaws Committee and discussed with the attorneys assisting in preparing the final draft.  The final draft is now posted on the website and is up for member vote at the upcoming Annual Conference.   A summary is included with this posting to highlight the significant changes within the new document which meet many of the goals set out by the Bylaws Committee and as requested by the membership.

• Your treasurer, Ben Edwards, and I provided customized Financial Reports to the Board of Directors each month. Previously, minimal quarterly reports were provided.  We reviewed these financials and added notes of significant items for the benefit of the entire Board.  Availability of discussion was then encouraged at each Board Meeting on the full set of financials.  
   

• A budget was prepared and approved by the Board prior to the release of general funds for any 2009 expenditures.  Prior to this point, the budgets were rarely submitted or approved by the Board prior to the Spring Seminars thus having a significant portion of the year having passed by with no budget in place.  From this point forward, approved budgets will be required prior to the start of each fiscal year with involvement of the entire Board of Directors. 

• An independent accounting firm was engaged to prepare and perform a review of the financial statements, financial procedures, management contract, and other related items.  A report on their findings and suggestions was reviewed by the Board.  Hutchins Allen & Co. now prepares the financial reports each month along with notes and questions for the Board to consider.  These are then reviewed by the Finance Committee with additional comments for the Board to review.

• A Cash Flow Budget has also been prepared for the first time so the Board can keep track of projections and actual cash balances on a monthly basis. This has proved to be a valuable tool during the past year.

• For the first time, the Board is able to “manage by the budget” having already performed the forecast, and adjusting as necessary as the reality of the year progresses.  This was helpful during the past year as the Association also had to deal with the effects of the economy.

• A Management Relations Committee was originally formed, but later dissolved.  The purpose of this was to ensure effective communication between the paid management staff and the Board.  However, the Board determined this was more of hindrance to communication, so it was dissolved.  It was decided that Management and the Board should have free flow of information between each Board Member and Management and vice versa.   This has become a reality as the year progressed with numerous email communications directly between any Board Member and the Management Staff.  Toward this end, an Internet based communication system was set up for Board communication among themselves and with Management.  This permitted free and open access to all communication between Board Members and Management.  This also helped with the transparency issue so that there were no sub-groups within the Board and all members were equally informed of issues coming before the Association.

• A new member website was researched and implemented early in 2009.  This website was reviewed by both management staff and the committee assigned to the project.  The new website was implemented and serves as an excellent platform to build additional member communication and resources for members to have access to.  The number of hits to this website has grown each month as members are becoming more accustomed to frequenting the site to look up the latest information or to access specific information as they are informed by email blasts throughout the year to the membership.

• In the past a significant portion of the membership, the supplier/associate members, were denied representation at the Board level.  Since they represent approximately 20% of the total membership, the Board felt it was pertinent to permit at least one Board of Director position coming from this part of our membership.  Kyle Buehner, as Secretary of the Board, represents the first supplier/associate Board member in this capacity.  The upcoming Annual Meeting nominates a second person from the supplier/associate category so that two of the twelve Board Members will be from this group.  The new bylaws also require that at least one Board Member position always be from the ranks of the supplier/associate members, but no more than 2.

• Surveys over the past several years have clearly indicated that “awareness” of vacation homes as a lodging option is the biggest challenge facing our industry.  The current Board has undertaken this mission with gusto.  Our Association has accepted the offer from the independent group “Discover Vacation Homes” to provide all of the assets and history of DVH at no cost, with only the promise to continue its promotion on a national basis.  This includes not only a consumer oriented website, but also a significant strategic initiative from a public relations standpoint.  The hiring of the nationally recognized travel public relations firm, Ypartnership, has made great inroads over the first year of the DVH initiative.  I would point out that public relations strategy such as this can be analogous to preparing, sowing and planting a field.  It takes time for the seeds to sprout before the harvest arrives.  Such is the case in this first year, but very visible signs of the rooting and sprouting are apparent throughout the travel industry.  It is important to note that Discover Vacation Homes is not merely a website with listings of our member companies.  While this is one of the strategic initiatives to achieve the awareness goal, it is a minor part.  The public relations part is the largest segment of this initiative and drives towards our goal of increasing the vacation home industry’s income share of the $300 billion travel industry.  Evidence of the success of this campaign will be highlighted during the upcoming conference in Washington, DC. 

• The new website permits us to post documents and resources for our members.  A good example is the “white papers” which have been posted by Steve Milo and his Government Issues Committee.  This provides valuable resources for those members who face rental restrictions in their market areas.  Other issues which arise can equally be posted, increasing the value of the VRMA website as a member resource.

• Through the efforts of Rick Fisher, our Director of Membership and Strategic nitiatives, we have signed up four major sponsors for VRMA which include HD Supply, Instant Software, CSA Travel Insurance and Kaba Locks.  In the HD Supply sponsorship, all VRMA members are instantly eligible for the National Association discount of up to 14.5% on the over 19,000 products they provide.  In many cases, this discount alone will more than offset the cost of VRMA membership.  In fact, in many cases, the savings incurred are multiple times the cost of VRMA membership.  The Board of Directors is looking at researching additional partnerships which yield tremendous advantages for our members through national alliances and group purchase discounts. 

• In the past we have attempted to create a curriculum for a certification in vacation property management.  However, while we have sponsored individual courses, there has not been a definition of what is required to obtain the moving target.  Over the past year, the Board has agreed on a designation of Certified Vacation Rental Manager through completion of the array of courses already offered  including the final one to be offered at the upcoming Washington, DC conference….Marketing.  Those who have successfully completed all the courses will be publically awarded the designation during 2010 VRMA events.

• This year’s Washington, DC conference has an outstanding lineup of sessions.  The Conference Planning Committee has done a stellar job in identifying relevant topics and finding speakers to present them.  Additionally, this year for the first time we are sponsoring an Executive Level Tract (ELT).  During each of the concurrent sessions, an ELT course will be presented and geared towards CEO’s of all of our member companies as well as top management.  These are relevant courses for anyone in a high level position who must deal with all the issues we face as a Vacation Rental Management Company.  These courses were designed with input from major VRM’s around the country and we have sought out expertise in the subject areas to present these courses.

          Another important subject to cover is the dues structure for the 2010 membership year.  As you know, the dues have increased to include $3.00 per rental unit managed.  In some cases, this will be a large increase over dues paid in the past.  However, as you can see from the work completed by your Board over the past year, the awareness issue requires funding to continue to fund the elements required.  It would be our long range hope that through partnering with national services which promote savings for our companies and provide donations to the Association, that cost of membership in VRMA will be reduced in the coming years.  However, to get these initiatives off the ground and to create the ground swell, we must fund these projects up front.  While compared to previous costs of membership, this represents an increase in dues, we are hopeful that our members will share our vision and strategic plan on reaching the new levels to which our Association aspires.   Instead of looking at this as purely a cost of membership, we ask that you look at it as an investment in the future and a part of your marketing budget.  Future benefits will include driving additional business to your website, enjoying reduced costs of services and products you are already purchasing, and enlarging the vacation rental home segment of the $300 billion travel market.  All of these will have a direct impact on our individual company’s success in years to come.

          So, it has been a very active year for your Board of Directors and we believe we have made substantial inroads into the many changes that the membership has asked us to conquer.    Your Board has tirelessly and effectively donated a large piece of their working hours throughout the past year.  Collectively, a conservative estimate would be that through our time and expense incurred in attending meetings and working on projects, your Board has invested well over $100,000 in service and leadership to the Association.  We share a common vision and passion for how we view our industry and what we see as a bright future for our Association.  I ask you to give thoughtful consideration as to where you envision your industry association should be and if you agree on the path your Board of Directors has set for taking us to new levels.  If your conclusion is that you share the vision, which I hope you do, I would then ask that you also provide your support in words, deeds, and financial commitment to helping your Association achieve those levels.  I look forward to seeing you all in Washington, DC and enjoying an outstanding conference from an educational, networking, and enjoyment standpoint.   I look forward to seeing you on “The Hill”.   
     
       Alex Risser
       VRMA, President