Seasonal Vacation Rentals & 28% Management Fees

[Brian Tustin]

I'm working on purchasing a vacation rental in my hometown that is very seasonal, approximately 9 weeks of solid summer bookings and intermittent bookings throughout the shoulder spring/fall months. One of the companies I've looked at using as a property management is called Vacasa. 

Is anyone familiar with the company? They're fees are 28% but seem to be extremely thorough with their operations, marketing, and management of guests and the unit. I'm curious if anyone has used them and finds the value and revenue they bring to offset the high management fee. 

Financially, I understand that the purchase price and all in monthly expenses should account for that % fee if we choose to go that route, but one thing that was communicated that rubbed me an interesting way was "Owning a vacation rental unit is not a get rich quick scheme. Your objective may be to come as close to breaking even as possible. Even if you a say $2000 in the red at the end of the year - thats okay, especially if you had the opportunity to enjoy the place yourself." Anyone have thoughts on the statement of going in with the expectation you may be "$2000 in the red"?

[Corey Meyer]

@Brian Tustin

I run a Vacation Rental Management Company in Big Sky, Montana and charge a 30% commission on full operation of STR services.

Personally I would hunt out a local management company over a larger corporate enterprise like Vacasa. But that’s just me wanting to support the local guys versus big national brands.