Short Term Vacation Rental Company for sale?

[bluebeachblonde]

Looking to potentially acquire a property management company anywhere from Pensacola to Panama City.
Please let me know if you have any leads or would like to chat!

 

[UpNorth]

How hard is it to start one of these? Seems like there’s a lot of them, a general lack of transparency, and a lot of people who want 20-25% of gross revenues for putting up ABNB listings and making the beds.

 

[Matt J]

How hard is it to start one of these? Seems like there’s a lot of them, a general lack of transparency, and a lot of people who want 20-25% of gross revenues for putting up ABNB listings and making the beds.

This is 100% accurate. It used to be that you needed hard infrastructure offices, laundry, etc. now anyone with a domain can buy rental software and start running a business.

I will say with the current economic uncertainty in general couples with the beach issues, if you're looking to offset some gains with a loss then buy a vacation rental company.

For context Vacasa which the largest local rental company has shuttered and is selling their flagship office across from the Destin Commons. While I understand virtual check-ins this is extremely telling about the current rental climate.

I also believe that we will begin seeing rental companies closing or merging as the financials continue to squeeze.

Probably the biggest obvious issue for rental companies is staff. No matter the automation you're still going to need housekeepers and maintenance techs and those are hard to find and keep.

 

[bob bob]

Looking to potentially acquire a property management company anywhere from Pensacola to Panama City.
Please let me know if you have any leads or would like to chat!

How many properties would you like and any other details?

 

[UpNorth]

Yea it really seemed the whole area got triple bamboozled with the whole covid thing. Cyclical highs as far a demand cuz half the country was told they weren’t allowed to do anything and had to wear masks while not doing anything so they fled to places like this. Trump/Biden bribes aka stimulus checks fueling absurd rental rates. And of course 2-3% mortgages for investment properties.

So much turnover/sales to newer hot money dimwits from out of market who bought banking on appreciation or continued rental rate growth. Now all those new buyers have declining home values, declining ABNB rates, rising interest rates, AND that property manager who still wants 20-25% but can’t really pay his bills either so he does a half assed cut rate job.

It’s kinda funny actually.

 

[bluebeachblonde]

How many properties would you like and any other details?

I am open. Looking to chat with any local owners who may be interested in selling.
I have investors who want to grow an already established company in the area. We are looking for properties that are making 50K+, however.. we are still open if the majority of the inventory fits.
We are open in our budget as long as it makes sense.

 

[Matt J]

I'm not sure who, but someone should Google "Sunburst Vacation Rentals".

 

[UpNorth]

Yea I still very new but have heard tons of stories. Even down to rental income being straight up unreported to owners. I mean if you’re out in Kansas, do you really have a foolproof way to know the exact days and nets your property is doing? I got a rental income projection from a few guys in late 2022 and it immediately seemed too aggressive. The lack of accountability mechanisms seems terrifying as a potential owner of these things.

 

[Matt J]

Yea I still very new but have heard tons of stories. Even down to rental income being straight up unreported to owners. I mean if you’re out in Kansas, do you really have a foolproof way to know the exact days and nets your property is doing? I got a rental income projection from a few guys in late 2022 and it immediately seemed too aggressive. The lack of accountability mechanisms seems terrifying as a potential owner of these things.

Rental projections - pronounced FRAUD. There's a reason banks won't accept them for anything.

Rentals of South Walton was famous for canceling cash paying customers reservations, got caught when nearby owners would drive down to take advantage of the opening to discover a house full of renters.