Vacation rentals: Expected vacancy rate and management fees?

[Daniel Hart]

I've accumulated quite a few rentals in the city I live in, and the focus has always been cash flow, but I'm considering purchasing my first "vacation rental". 

While I have set formulas for my lower/middle income inner city rentals, I haven't the slightest idea what to expect from a vacation rental.  

I'm considering purchasing in the Asheville, NC area, and would purchase something that not only satisfies me for my visits, but also is universally attractive for vacation tenants, meaning an attractive setting, reasonably close to downtown, and modern amenities.  The price range I'm looking at is $100k-$150k.  The only assumption I am making is that something like that would rent for around $99 a night. 

My typical rental property at my home has a cost basis of $40k and rents for $800 a month, and those numbers always work, but I understand that with a vacation rental I may not see much income.  I know that I won't be able to manage it, and I'll have to have a property manager who will charge higher fees then a standard long term rental manager.  

So, in order to really understand what a vacation rental like this might earn (and I don't need income to buy it, but I do want it to break even), I need to get an idea, even just a ballpark, of what type of vacancy rates and management fees I'd be looking at.  

Even if you aren't in that specific rental market, I'd appreciate your estimates.  Thanks!