Buying a vacay rental, honor current bookings or no?

Hurst, TX · Member since 2016 · 192 posts · 114 votes

Hey BPers, I'm currently buying a vacation rental in South Padre island, Texas. It's already booked through summer. The company handling the listings is vacasa and charge 30% which seems high. I'm looking to Airbnb the condo myself. Do I have to honor the current bookings? Can I work a deal out with vacasa to keep the bookings but they take a smaller cut? Or what options do I have? Thx Stevo in Hurst

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Carson Wilcox

Davis, CA · Member since 2016 · 595 posts · 344 votes

seems like 70% of a booked house is better than nothing... are you going to be able to rebook that after you close on it, and fill out the summer? Let alone if one of these people gets pissed and goes on an online review revenge spree on the property... Posting bad stuff...

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Antoine Martel
Investor · Los Angeles, CA · Member since 2016 · 577 posts · 240 votes
9y
I would get in touch with the company, read the agreement that they have, maybe maybe it part of your offer that you want that company out of the picture. However it is some income which could be good for you for a couple months. Read the agreement and do some analysis on how much you would make.
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Steven C. Suarez
OP
Hurst, TX · Member since 2016 · 192 posts · 114 votes
9y
Thx, I'll give them a call!
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John D.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
9y
You do not have to host those guests, however it might make sense to for a few months while you build your own property reputation and fill up the calendar.
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Carson Wilcox
Davis, CA · Member since 2016 · 595 posts · 344 votes
9y
seems like 70% of a booked house is better than nothing... are you going to be able to rebook that after you close on it, and fill out the summer? Let alone if one of these people gets pissed and goes on an online review revenge spree on the property... Posting bad stuff...
2 Reply
Steven C. Suarez
OP
Hurst, TX · Member since 2016 · 192 posts · 114 votes
9y
Carson Wilcox good point. I don't know how they could attack my place though since it's only on Vacasa. If I add it to Airbnb it would be a new listing. Perhaps it would tarnish vacasa's image. More the reason for them to pass along the renters to me at an agreed upon rate. Summer and spring break are the busiest times for Padre so I feel I wouldn't have too much trouble renting it out. I'll speak w them and keep y'all posted!
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Carson Wilcox
Davis, CA · Member since 2016 · 595 posts · 344 votes
9y
Crazy people find a way... If you booted me out of my family vacation in the end of June, I would be PISSED... Bird and $ in hand... might not be the % you want... but better than nothing..
THreaten to walk from Vacasa, I bet they offer you a better rate to keep the rentals...
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Ariel Smith
Rental Property Investor · San Diego, CA · Member since 2016 · 306 posts · 205 votes
9y
@Steven C. Suarez I'm interested to hear how your conversation goes with Vacasa. 30% is an exorbitant amount for a management fee - even with vacation rentals. Take a look at the current agreement with the owner. Most agreements will allow you to a cancel for a fee and I'd try to negotiate the sellers pay that cancellation fee.
I have experience firing a bad vacation rental property management company and the fee for cancellation was worth it because as soon as I started self managing we made up for the loss in a few days. Keep us posted! :)
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
Originally posted by @Carson Wilcox:

Crazy people find a way...
Truer words have NEVER been said.
[email protected]Podcast Guest on Show #261
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Mike R.
Investor · Valley Glen, CA · Member since 2013 · 247 posts · 111 votes
9y
Problem with Vacasa and other PM companies, they put your listing on their page. So they get the reviews not you. If you let them book this out all summer- you will start with zero reviews when you do decide to leave them. Summer is probably a big time there, get those reviews on your own page. It's why I always ask my clients to let me co-host for them - that way if they ever want to leave- they still control their reviews.
And 30% is normal to low depending on area. I think Vacasa is 35 to 40% in Big Bear where I rent out.
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Steven C. Suarez
OP
Hurst, TX · Member since 2016 · 192 posts · 114 votes
9y
Ariel Vincent thanks for the great advice. Yeah 30% is a bunch. I'll let you know what they say and keep you posted for sure!
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Steven C. Suarez
OP
Hurst, TX · Member since 2016 · 192 posts · 114 votes
9y
Mike R. Thx mike! I never even thought of that. Yeah, reviews are crucial!
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Mike R.
Investor · Valley Glen, CA · Member since 2013 · 247 posts · 111 votes
9y
Yep! I simply allow all my owners to retain their page but they give me their log ins. All money goes to them, I invoice them end of each month.
I'm sure as a big corporation they want to control all that- but that never seems fair to the owners.
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Cody Cook
Investor · Austin, TX · Member since 2013 · 64 posts · 14 votes
9y
@Steven C. Suarez Did you end up deciding on a property management company? I've got a South Padre island property I'm interested in and was curious how your deal went. Additionally, do you have a realtor to recommend in South Padre?
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Steven C. Suarez
OP
Hurst, TX · Member since 2016 · 192 posts · 114 votes
9y
Cody Cook I was wanting to manage the condo myself actually. I'm still in closing, the vetting of the HOA is the big hold up. Accept my colleague request and send me a message so I can message you my agent's info. BP won't let me message you directly until you accept. Thx!
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Cody Cook
Investor · Austin, TX · Member since 2013 · 64 posts · 14 votes
9y
@Steven C. Suarez colleague request accepted
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