Make Sure You Are Comparing Apples to Apples

Valid Comparisons Matter

It's well-known that the vacation rental industry in our area experienced a significant financial boost during the pandemic. Rental rates, revenue, and occupancy reached unprecedented levels due to unique conditions. Keep this in mind when requesting a rental projection or evaluating an investment property's revenue potential for buying or selling clients. It's so important to ensure that the numbers provided are based on real data from comparable market conditions.

I often come across rental projections from other property management companies that use numbers from two years ago, a period marked by extraordinary market conditions. This data is very outdated and not at all realistic today. The current rental market is vastly different. Additionally, many MLS listings present rental histories that include 'gross rental' totals with added expenses like taxes, cleaning fees, and parking passes, resulting in an inflated gross total. This approach is not apples to apples and does not offer a valuable comparison.

It is crucial to be as realistic as possible with projections. Buyers are basing important decisions on rental potential. They are looking at this income to offset some of their anticipated expenses. When I am preparing projections for you and your clients, I consider the current economic conditions, the current vacation rental market, and the current condition of the property. I spend a lot of time researching the current data available for all comparable properties available for short-term rent, pulling comparables from our current inventory, and formulating a realistic, achievable projection, barring no unforeseen circumstances. These numbers are real. They are numbers you and your clients can trust. Our rental histories and projections are for gross rent only, which is what buyers are interested in. I use valid comparables and real data. An inflated or inaccurate rent projection doesn’t do you or your clients any favors. Instead, it sets unrealistic expectations and sets your clients and new property owners up for failure, which is the last thing we want.

Please contact Kathy Harr for more information or find more information on our property management program here.