The vacation rental market is one of the fastest growing real estate opportunities, projected to be worth $36.6 billion by the end of 2018. Vacation rentals provide more opportunity for income compared to long-term rentals due to higher occupancy rates and the ability to charge more per night. When evaluating potential rental properties, factors like location, permitting requirements, homeowner association rules, and first impressions on guests must be considered to optimize returns. While vacation rentals provide income potential, the property must be in a high-demand area to rent year-round in order to be worthwhile as an investment.

1. Investing in
Vacation Rentals
AVID Investors Club. February 20, 2019

2. Hello, AVID!
Thaddeus Hanscom
Director of Real Estate Partnerships Growth, Vacasa

3. Disclaimer
This document is for information and illustrative purposes only. It is not intended to provide “investment advice” or a
“recommendation” regarding a course of action. The discussion is general in nature and has not taken into account your
personal financial position or objectives. You should consult a licensed financial advisor or other professional to discuss your
specific situation. Estimated rental income figures and home sale prices are based on historical averages; for any specific
property, the actual revenue, purchase price, and cap rate may differ materially from estimated amounts and depend on a wide
range of factors outside Vacasa's knowledge or control, such as the property's condition, layout, and furnishings; expenses
associated with the acquisition and ownership of the property (such as exact property taxes, utility fees, HOA fees, insurance
fees, and mortgage-related expenses); rental calendar availability; existing and future regulations; current and future economic,
social, and political trends and conditions; and weather and environmental factors. These estimates do not take into account the
potential impact of state income taxes. Vacasa makes no representations or warranties, express or implied, about the accuracy
of this document. Furthermore, Vacasa has no obligation to update, modify or amend this document or to otherwise notify users
in the event that any opinion, assumption, forecast or estimate set forth herein changes or subsequently becomes inaccurate.
Therefore, you should not place undue reliance on statements in this document.
/TLDR I’m a data guy, not a CPA, realtor, tax attorney or financial advisor.

4. Vacation Rental Overview

5. The vacation rental market is one of the fastest growing opportunities in real
estate.
Vacation Rental Overview
$36. 6B
by end of 2018

6. Short term rentals mean
more opportunity, better
care and more access.
Vacation Rental Overview

7. How to measure
return?

8. (Full image slide with caption)

9. BOISE’S BEST: STR SCENARIO
$11,645 Net income after 35% mgmt fee, vacancy, and
cleaning fees (includes supplies like shampoo, soap, dish
soap and kitchen accoutrements).
-$710 Internet $59/month - Tenant likely would pay in a
long-term rental.
-$1,000/year Elec (includes heat). Tenant likely would pay
in a long-term rental.
-$480 Water $40/month. Owner likely would pay in a
long-term rental for this non single family residence.
-$150 Sewer /Trash $25 every other month. Owner likely
would pay in a long-term rental for this non single family
residence.
-$1,000 /year repairs, maintenance, weeding or snow
removal and replacement of bedding/towels/TV. For a
long-term rental there would be no replacement of
bedding or furniture, but walls/floors potentially could get
more wear and tear.
_____
$8,305 net cash flow plus perks
LTR COMP
$8,905 Estimated rent $850/month, after 3% vacancy, 10%
management. Space is pretty small for long-term.
-$550 water (Estimated higher based on increased usage for
97% occupancy).
-$300 Sewer/Trash (Estimated higher than current based on
increased usage for 97% occupancy)
-$700 Repairs/Turnover (This number could go down or up in
LTR Scenario depending on tenant and what they hung on walls
and how frequently it turned over and how perfect their pets truly
were).
_____
$7,355 net cash flow minus perks
SHORT TERM DIFFERENCE:
+ 10% profit
+ 25% in gross revenue
+ .06% in cap rate
VS

10. Rentals in Boise
and McCall
Values Boise Mccall Grand Total
Unit Count 515 526 1041
Market Gross
Rent $7,153,658 $10,239,157 $17,392,815
Avg. Gross Rent $26,525 $27,372 $26,979
Min. Rate $66 $84 $66
Max Rate $527 $1,219 $1,219
Avg. Rate $168 $247 $211
Avg Occupancy 44% 32% 37%

11. Occupancy

12. Seasonality

13. ● Rental income projections
● Permitting
● HOA
Finding the
right home

14. Everything comes down to
the first stay.
How to
optimize?

15. Reasons not to
invest?
Home is in low-demand area
Seasonality
You don't trust the algorithm

16. Thank you
thaddeus.hanscom@vacasa.com