Working with companies like Vacasa?

Question

Hey Everyone,

Its Alex on the Coast again. I try to analyse a deal every day, and lately I have been analyzing a lot of vacation homes managed by companies like Vacasa.

Has anyone had success investing in vacation rentals? It seems like you can get very solid rents, but you also have to have a large (20-30%) down payment.

Any thoughts, any pro-tips?

Thanks!

Account Closed · Answer

I invested in my first condo last year and hired Vacasa to manage it for me.  I liked them so much I actually came to work here! Since then I've signed almost 50 new homes for them in 6 months and have seen many success stories from investors working through them.  Of course we are in Panama City Beach, Fl. which is one of the top investment markets in the country... location is a critical factor in the short term rental decision. They earn every penny of their money since their fee is comprehensive of so many services.  I gasped when I heard it myself since I thought property management was 10%!  But the world has changed and how we market in it has changed.  I don't know any company more process driven or capable on the online marketing front which is what drives occupancy rates.

Lisa Day · Answer

Vacasa is a horrible company! Run in the other direction! They kept our home filthy and cost us thousands in damages. They lied all the way up the chain! Zero integrity or accountability! Read reviews from their own sites, Bbb, sitejabber or anything you can find and you will be horrified!

Steven Cochrane · Answer

We have a second home at N. Lake Tahoe managed by Vacasa. We have had this home as a vacation rental for 1.5 years (owned since 2010). Vacasa is for those who want a full service management company; way more than a long term rental where a manager collects rent and calls for repairs. Vacasa provides you with prorated owner insurance (charge for rented days only)  marketing (photos, description, pricing, website), advertising via web, whole house cleaning and supplies such as paper towels, TP, all soaps, sponges, garbage bags, damage repair and can schedule owner required repairs/maintenance (water heater, snow removal, yard maintenance, etc.). If you are hands on and your rental is your business, then Vacasa is not for you. If you work full time and are willing to pay for turn key services, then you will make money with Vacasa inspite of their fees. You have calendar access to block out dates for personal, family or friends' use. So, compare your time and out of pocket expenses; you'll save doing it yourself, but if you want hassle free we found Vacasa to fit our needs. PS: We did compare and found other management companies to charge less commission, but for fewer services; take home message is to shop to find a management company that fits your needs if you need a management company at all.

Crystal Ball · Answer

Update - after working with #Vacasa a little over a year - I had to go to HR because they were no longer doing what they said they would for our customers here & I was ready to leave if they couldn't quit lying! They went through 9 managers in 3 months in our market, have a rampant nepotism problem that starts at the top, and kept changing things so fast it became a really toxic work environment really quickly. After Hurricane Michael hit here - they handled things deplorably. They fired me & the GM when we went to HR to complain (I've never even been written up in my life!), have been laying off people left and right (with an email of their final paycheck - not even a courtesy call), losing customers & staff here in droves. The co-founder left in 2018 and the company took a nosedive. Their marketing is incredible and they have the potential to be a great company, yet until they make some massive management changes and get their operations under control they will continue the downward slide.

They still owe me over $13k in commissions, made up charges on my condo, didn't replace bedding, said I had bed bugs 2X when I did not, and all sorts of fun. I got my real estate license 2 weeks later and am now working full time with investors again.  After putting on my journalism cap I interviewed all the top STR companies in market and found my top three to refer to. Dozens of their customers are calling me still trying to figure out who to call for statement issues, get in their own condo, wondering why they are being charged $70 - $180 for light bulbs (energy upgrade?!) that they were told was included in their commission, and eagerly waiting until season has ended to switch to a company that will answer their phone.

Guess who I will never refer to again! :)

Jeremiah Pedersen · Answer

@Alex Hake   This is an interesting play! I have not considered that. My main concern would be when the economy scales back, Vacation rentals tend to scale back as well.   Have you found anything worth pursuing?

Working with companies like Vacasa?

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