All Forum Posts by: Brian Tustin

Thanks for that detailed write up @Tom Kastorff . Super valuable insight. Interesting to hear that breaking even or being a smidge in the red is fairly common for STR in this location. Personally, I feel like that definitely doesn't make it worth it. Why not just base the purchase off LTR and then transition to STR as an added bonus?

LOVE Mammoth and the surrounding gem's! Thanks for sharing your insight. The town I'm looking in, which is where I grew up, really has a 10 week rental period that one can count on high occupancy. Outside of that it's hit or miss. 

I've got a couple emails out to some local PMs to gain more knowledge of their perspective and level of service compared to Vacasa. Thanks! 

Hey Jay! No, this property it out of state. We run an airbnb in OB here in San Diego but self manage. Good word on shopping around and yes on the 9 month / 3 month idea. #STUDENTS!  ha. Thanks Jay

Hey Joey. Yeah the customer facing fees + what they charge the owner combo is a bit excessive.  We manage an airbnb locally where I live but the out of state does make me a bit more nervous. Obviously not impossible! Didn't know about the TurnoverBnB app! Will check that out! Thanks Joey

Thanks @John Morgan Great insight! Enjoy the long weekend vaca! Cheers! 

That's great feedback , I appreciate that input and reminder of those points. Do you use a company other than vacasa or have a recommendation?  Do you still cash flow with the 30% fee? Or do you have the perspective that it's okay to be in the red because you don't have the headache, and in theory, you're gaining equity each year? 

It's not a timeshare. It's a condo that will appreciate. HOA fees for building and common area maintenance. It'll appreciate and have a long term return. The 28% covers year round cleaning costs, minor maintenance, guest management, bookings, and marketing.

Those are good questions @Colleen F. Their fee is definitely higher than what I've seen from other local PMs. Others are from 14% - 22%. Most of bookings in the area are either local PMs, self ran airbnbs, or vacasa/turnkey. I asked from locals aboout their experience with vacasa and all are good things but the numbers are unknown from their persepctives. 

The question of do i need the services they're providing is a great question. My answer is yes because I live out of state and that's a comfort thing. I do have family there but don't expect to rely solely on them. I have asked a few question of the regional manager to learn more and hopefully counter. 

@Mark H. Porter. is that 6% with a local PM company? I wouldn't expect less than 10% for full services that include cleaning, guest management, etc. 

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"?

Haha... yah, 2 - 4 here on average in San Diego.. woof.