A disruptive business and opportunity stem from identifying voids in a specific industry or marketplace. Patrick Michael, Founder & CEO of L.A. Estate Rentals, incorporated a company before Airbnb that dealt with marketing, managing, and representing the finest luxury homes in Los Angeles during the 2008 recession. It was an excellent opportunity to take homes that could not sell, homes that developers built to sell, and rent them out to discerning clientele who were, in essence, recession-proof. “A wealthy individual will only get wealthier during these downturns, and hence, may not immediately buy property, but will rent to maintain a certain lifestyle (and possibly writing it off if it’s a business/travel related expense) if they are savvy individuals,” says Patrick.
The steadfast leader has pioneered the luxury vacation rental market, set the standard of how brokerages and agents conduct business, and all collaborate. “I am a firm believer that there is no competition except benchmarking yourself, only against yourself. There is an infinite abundance of opportunity, so we must attack business with an abundant mindset, not a scarcity one,” elucidates Patrick. Prior to entering his real estate career, Patrick was a minority partner and Marketing Director of Joya Beverly Hills, a prestigious lounge, restaurant, and bar in Beverly Hills. He has also been involved in various start-up ventures such as the clothing line Rebel Lifestyle/Rebel Jeans and the luxury car company Beverly Hills Automotive.
After attending Loyola Marymount University’s Hilton School of Business for undergraduate and graduate programs, Patrick received his Real Estate Broker’s License in 2006. In 2008, he opened up a boutique brokerage firm with the help of Jonathan Massaband, Capital Investment Realty Group, which would focus on the luxury residential real estate market. Patrick not only has a brilliant business mind but also has a well-honed creative side. He has had the opportunity to collaborate with some of the A-list real estate music artist clients and put together a production company – recently having been able to executive produce 3 top-tier A-list music videos (one of which was 3x nominated music video of the year) – Offset’s “Red Room,” 21 Savage “A Lot,” (3x nominated), Migos/Travis Scott/Young Thug – “Give no Fxk”.
Building A Niche Market
His company, L.A. Estate Rentals, started approximately fourteen ago as a niche business opportunity to service owners of stagnant high-end luxury homes during the 2008 recession. Creating a temporary income stream that turned these homes into cash-flowing assets, a new company was born as a niche within the brokerage firm. L.A. Estate Rentals has been a thriving business ever since. Furthermore, LA Estate Rentals has continued to climb the charts as one of the top prominent and influential vacation rental companies in Los Angeles. With an ever-growing portfolio of over 350 luxury vacation rental properties, this company anticipates scaling globally with its successful track record and A-list global roster of the most well-known entertainers, athletes, tech moguls, CEOs, and royal families.
L.A. Estate Rentals represents properties that charge anywhere from $2,000 to $15,000 a night. Patrick states that the priciest of the ultra-luxe short-term rentals can go for $25,000 a night. Patrick adds that the luxe short-term rental business has been popular for decades, but it got a boost during the pandemic, and the surge has continued. He and his staff of 18, plus 30 sales and leasing agents, exclusively represent 65 properties in the L.A. area, which Patrick estimates as having $30 million in gross annual rental income. “Wealthy people don’t want to sacrifice their lifestyle,” he says. “During the pandemic, they wanted the luxury of traveling in isolation to different cities.”
The company offers “Their Clients” the highest level of Discretion, Amenities, Concierges, Convenience, and Customer Service while catering to the unique lifestyles our clients expect in their individual lives.
“We’ve now expanded globally to over 12 cities and have built a reverse real estate brokerage model that is unique in the sense that we build relationships through our luxury rental business and then in turn, sell our clients the very homes that they rent; all whilst spawning other business opportunities with our clients’ turned friends,” explains Patrick, who is highly respected in the elite circles and broker community as a highly accomplished residential leasing broker and short term rental specialist who has spearheaded the industry for over a decade. “I’ve also realized an opportunity to create vertically integrated income streams that all compliment the core business model, creating a business that has been flourishing, all without spending any money on advertising.”
Towards the Future
Global Estate Rentals is Patrick’s luxury global rental brand which integrates all the vertically integrated companies that work like clockwork to give the client a 360-degree experience anywhere they travel.
LA Estate Brokerage—under the aegis of Global Estate Rentals—is a full-service, luxury real estate residential and commercial brokerage representing clients and companies worldwide in a broad spectrum of real estate needs, including residential, residential leasing and luxury vacation rentals, asset management, investments, and property management. “Our core strengths include our ability to source deals not accessible to the open market as well as uphold our reputation as a world class real estate firm. L.A. Estate Brokerage extends far beyond what a conventional brokerage firm offers,” explains Patrick. “It is the equisential 360-degree provider of luxury real estate brokerage, vacation rentals, asset management, commercial brokerage, asset management and other essential real estate services. It prides itself on connecting companies, athletes, and entertainers with solutions for renters, buyers, sellers, developers, and investors across the globe.”
For Patrick, technology does play an integral part, and along with his team, he is currently building out necessary disruptive technologies that will shape the future of how one searches for short-term rentals. “We are implementing A.I. tech and trying to create a simple process to find out what’s available in real-time in a non-exclusive vacation rental industry where data is scattered and not unified under one central database like airlines/hotels are accounted for,” says the pioneering leader.
The company’s core is more vital than ever as 85 percent of its business is word of mouth, referrals, and repeats. As they take the next step of raising the bar, Patrick and his team will prepare to build a more robust online platform and presence, further boosting sales and profits and playing from an industry-shaper approach; the opportunities are endless. “I look forward to further disrupting this industry by creating our own vacation rental MLS, industry blacklist, Vacation Rental HOA, a Realtor’s certification program, luxury branding and product placement program, start our fund to buy/remodel/design/rent/manage/re-sell; inject technology and branding elements into our platform, and building out all the verticals that we’ve identified,” says Patrick. “We are seeking strategic partnerships and investment capital to fund our growth, accelerate scaling into different regions, and develop and implement proprietary technology and apps that will disrupt and streamline the booking processes on an industry-wide level.”