Vacasa vs. Smaller player for Property Management

Short-Term & Vacation Rental Discussions
4yFollow

Vacasa vs. Smaller player for Property Management

Tim Welker
Member since 2021 · 20 posts · 2 votes

Buying an STR Condo in Panama City Beach. The complex itself is managed by Vacasa and they push heavy to be the Property Manger of the unit as well. But, also have a smaller, boutique property manager I've consulted with as well. Obviously Vacasa has the scale, they are on-site, and offer a lot of start-up benefits. Any opinions, experiences, pros or cons out there that people would like to share?

0Reply
113 views

Most Popular Reply

Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
4y
Quote from @Tim Welker:
Quote from @William Beck:

What's the % Vacasa quoted and what's the local PM Charge? I know Vacasa does a different % based on market which could be worth looking at. 


 William, good to see a fellow Missourian respond.  They are both quoting me 18% at this point.  But, I'm learning more about how the big guys add on "processing" fees.  So far I've asked for references from both and only the customers for the "small guy" have responded to my e-mails with positive comments.  


[email protected]806-672-7102
SMOKY MOUNTAIN FALLS INC.51 Review
WebsiteView Page
3Reply
See this reply in the discussion

33 Replies

Jump to latestLatest
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    4y
    Up to you! I could see up and down of both. The real answer is YOU are the manager. But we can understand if it's not something you want to do.
    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    I would go with the on-site PM as they can more readily handle issues. That is as long as there fees are reasonable.

    1Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    4y

    Can you review some of the existing reviews and see if guests mention the quality of the cleaning, management company, etc? That might help you make the case for a yes or no in regards to Vacasa. 

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4y

    Hey @Tim Welker, it's Vacasa so....that is a tough nut IMHO. They have gotten pretty big and frankly their quality has suffered. Just look at various reviews on VRBO and AirBNB to see that their response time is dismal and their cleaning leaves something to be desired.

    1Reply
  • Daniel Denning
    Investor · Atlanta GA, USA · Member since 2018 · 118 posts · 90 votes
    4y

    I agree with Michael Baum...Vacasa's quality issues are exactly why I got into Co-hosting across the Southeast and usually gain new clients. They are just not happy with the quality of services for the cost. You can always self-manage by finding the right cleaner and handyman to be on your team/your boots on the ground. A Co-host or PM company would be something I would look into if you just cannot DIY it well. Happy to talk further if you need it. Just shoot me a PM. I am buying in PCB right now, actually. Good luck!

    0Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Michael Baum:

    Hey @Tim Welker, it's Vacasa so....that is a tough nut IMHO. They have gotten pretty big and frankly their quality has suffered. Just look at various reviews on VRBO and AirBNB to see that their response time is dismal and their cleaning leaves something to be desired.


     Michael, thanks for the feedback.  We'll do some more homework here before making a decision.  Their folks are "selling" me hard up front, but makes me nervous on their follow-through.  Local property manager is really highlighting the personal touch and not having to wade through 'voice response units" to get an actual person, etc.  

    0Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Leslie Anne Morris:

    Can you review some of the existing reviews and see if guests mention the quality of the cleaning, management company, etc? That might help you make the case for a yes or no in regards to Vacasa. 


     Thanks Leslie, good call.

    0Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Daniel Denning:

    I agree with Michael Baum...Vacasa's quality issues are exactly why I got into Co-hosting across the Southeast and usually gain new clients. They are just not happy with the quality of services for the cost. You can always self-manage by finding the right cleaner and handyman to be on your team/your boots on the ground. A Co-host or PM company would be something I would look into if you just cannot DIY it well. Happy to talk further if you need it. Just shoot me a PM. I am buying in PCB right now, actually. Good luck!


     Daniel, I appreciate the response.  Not interested in co-hosting at this point, I'm remote to the area.  The local property manager has already offered references that have changed from Vacasa to them.  We'll do a little more homework.  Thanks again.

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4y

    Good to tread with caution @Tim Welker. Vacasa still calls me and sends me mailers nearly once a month trying to get me to switch over. 

    1Reply
  • Daniel Denning
    Investor · Atlanta GA, USA · Member since 2018 · 118 posts · 90 votes
    4y

    Tim, you're very welcome! All the best in your endeavors!

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Quote from @Tim Welker:

    Buying an STR Condo in Panama City Beach. The complex itself is managed by Vacasa and they push heavy to be the Property Manger of the unit as well. But, also have a smaller, boutique property manager I've consulted with as well. Obviously Vacasa has the scale, they are on-site, and offer a lot of start-up benefits. Any opinions, experiences, pros or cons out there that people would like to share?


    Vacasa's scale doesn't help you whatsoever.  And they will take up to 40% of your rents, regardless of what they advertise to you.  Check out their astronomical booking fees that they don't share with you as an example.  You pay for those fees, because they've got to push your rents down to make the totals work.  

    The one thing that Vacasa does have over the guys is slick marketing to homeowners.  

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    3Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    40% of rents! Yikes

    0Reply
  • Rob HiltonPro Member
    Member since 2021 · 26 posts · 6 votes
    4y

    What Collin H. is saying is very accurate.  Vacasa will take a percentage of your daily rate, but keep in mind that they are charging your guests for cleaning fees and processing fees, both of which they will tell you is included in your 20%.  In other words, if they are taking 20% in a place like the Emerald Coast of FL, then what they are actually taking is more like 35-40% of the total take when you consider the cleaning and "processing fees" that YOU should be taking, not them.  They will communicate early and often when they are trying to onboard you, right up until the point when you sign the contract and your property goes live.  After that, good luck.  YOU are your best PM. 

    0Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes
    4y

    What's the % Vacasa quoted and what's the local PM Charge? I know Vacasa does a different % based on market which could be worth looking at. 

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y

    https://www.biggerpockets.com/...

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Rob Hilton:

    What Collin H. is saying is very accurate.  Vacasa will take a percentage of your daily rate, but keep in mind that they are charging your guests for cleaning fees and processing fees, both of which they will tell you is included in your 20%.  In other words, if they are taking 20% in a place like the Emerald Coast of FL, then what they are actually taking is more like 35-40% of the total take when you consider the cleaning and "processing fees" that YOU should be taking, not them.  They will communicate early and often when they are trying to onboard you, right up until the point when you sign the contract and your property goes live.  After that, good luck.  YOU are your best PM. 


     Rob, you are exactly right.  They are so eager to get me to sign with them and giving me all the attention now.  But I have the feeling that as soon as I sign up with them all I will get is their Voice Response Unit... press 1, 2, or 3 and then forced to leave a message.  Thanks for the response.

    0Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @William Beck:

    What's the % Vacasa quoted and what's the local PM Charge? I know Vacasa does a different % based on market which could be worth looking at. 


     William, good to see a fellow Missourian respond.  They are both quoting me 18% at this point.  But, I'm learning more about how the big guys add on "processing" fees.  So far I've asked for references from both and only the customers for the "small guy" have responded to my e-mails with positive comments.  

    1Reply
  • Peter Holloway
    Member since 2021 · 26 posts · 4 votes
    4y

    On site PM if you aren't going to do it yourself! We are in PCB too at Portside Resort. Enjoy!

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Quote from @Tim Welker:
    Quote from @William Beck:

    What's the % Vacasa quoted and what's the local PM Charge? I know Vacasa does a different % based on market which could be worth looking at. 


     William, good to see a fellow Missourian respond.  They are both quoting me 18% at this point.  But, I'm learning more about how the big guys add on "processing" fees.  So far I've asked for references from both and only the customers for the "small guy" have responded to my e-mails with positive comments.  


    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    3Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes
    4y

    Yeah I got a side-by-side comparo from my client with the following screenshot. I've edited for confidentiality sake but I'm quoting what the local property manager shared. 

    This is good stuff to know and share with the BP Community: 

    Hi ____,

    Thanks for reaching back out!
    It's also important to know that Vacasa is able to offer a lower fee because they charge guests extra booking/management fees that they keep 100% of, which means they have to charge a lower nightly rate. Here's a side-by-side example of a Vacasa property in the ____ development (left) alongside my listing (right):



    You can see that while the total price for both properties is similar (within 5%), with Vacasa, they've marked up the cleaning fee to nearly double and have also added an 18% "Booking" fee In order to then stay price-competitive with other listings in the market, they've had to reduce the nightly rate to $85.33 per night, compared to the $124.95 in my listing.
    In other words, assuming Vacasa pays their cleaners the same as I do (reportedly they pay closer to minimum wage, whereas I contract with highly-skilled professional cleaners), Vacasa is making $148.52 on this $534.29 booking and the owner is only making $204.80, whereas on my plan, I'm only making $93.71 out of the $553.37 booking and the owner is keeping $281.14. So despite the lower fee, Vacasa ends up keeping more of your money due to hidden fees.

    *Updated post with better high def images of the booking summary breakdown*

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Quote from @William Beck:

    Yeah I got a side-by-side comparo from my client with the following screenshot. I've edited for confidentiality sake but I'm quoting what the local property manager shared. 

    This is good stuff to know and share with the BP Community: 

    Hi ____,

    Thanks for reaching back out!
    It's also important to know that Vacasa is able to offer a lower fee because they charge guests extra booking/management fees that they keep 100% of, which means they have to charge a lower nightly rate. Here's a side-by-side example of a Vacasa property in the ____ development (left) alongside my listing (right):



    You can see that while the total price for both properties is similar (within 5%), with Vacasa, they've marked up the cleaning fee to nearly double and have also added an 18% "Booking" fee In order to then stay price-competitive with other listings in the market, they've had to reduce the nightly rate to $85.33 per night, compared to the $124.95 in my listing.
    In other words, assuming Vacasa pays their cleaners the same as I do (reportedly they pay closer to minimum wage, whereas I contract with highly-skilled professional cleaners), Vacasa is making $148.52 on this $534.29 booking and the owner is only making $204.80, whereas on my plan, I'm only making $93.71 out of the $553.37 booking and the owner is keeping $281.14. So despite the lower fee, Vacasa ends up keeping more of your money due to hidden fees.


     They need to hide them better.  😂

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Rob HiltonPro Member
    Member since 2021 · 26 posts · 6 votes
    4y
    Quote from @William Beck:

    Yeah I got a side-by-side comparo from my client with the following screenshot. I've edited for confidentiality sake but I'm quoting what the local property manager shared. 

    This is good stuff to know and share with the BP Community: 

    Hi ____,

    Thanks for reaching back out!
    It's also important to know that Vacasa is able to offer a lower fee because they charge guests extra booking/management fees that they keep 100% of, which means they have to charge a lower nightly rate. Here's a side-by-side example of a Vacasa property in the ____ development (left) alongside my listing (right):



    You can see that while the total price for both properties is similar (within 5%), with Vacasa, they've marked up the cleaning fee to nearly double and have also added an 18% "Booking" fee In order to then stay price-competitive with other listings in the market, they've had to reduce the nightly rate to $85.33 per night, compared to the $124.95 in my listing.
    In other words, assuming Vacasa pays their cleaners the same as I do (reportedly they pay closer to minimum wage, whereas I contract with highly-skilled professional cleaners), Vacasa is making $148.52 on this $534.29 booking and the owner is only making $204.80, whereas on my plan, I'm only making $93.71 out of the $553.37 booking and the owner is keeping $281.14. So despite the lower fee, Vacasa ends up keeping more of your money due to hidden fees.

    *Updated post with better high def images of the booking summary breakdown*


     Thank you for sharing this.  More people need to see this.  

    2Reply
  • Kevin Escobar
    Investor · Member since 2021 · 65 posts · 33 votes
    4y

    I would also say that you can get a better level of care/service for your property/listing with a smaller PM or a cohost opposed to the larger companies like Vacasa. 

    2Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Peter Holloway:

    On site PM if you aren't going to do it yourself! We are in PCB too at Portside Resort. Enjoy!


     thanks Peter

    1Reply
  • Tim Welker
    OP
    Member since 2021 · 20 posts · 2 votes
    4y
    Quote from @Kevin Escobar:

    I would also say that you can get a better level of care/service for your property/listing with a smaller PM or a cohost opposed to the larger companies like Vacasa. 


     Thanks Kevin!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free