What is Property Management - Industry Overview

Our industry was built from customer requests. Vacation homes have long been great family investments and income generators for their owners; they have also created a universal and long-standing issue – caring for the property once the owners return to their primary residence. In vacation areas, friends and family are usually unavailable and often unqualified. Likewise, vacation town service providers often have well deserved reputations for being on “mountain time” or “Beach time” with poor responsiveness or reliability.

Second Home Care was started in 1995 by Lake Tahoe realtors who were constantly being asked by their clients to look after the newly purchased property. By incorporating systemic professionalism and repeatable processes we’ve helped thousands of clients worry less and enjoy a higher return on their investment.

The percent of second homeowners that rent their homes has increased from 20% in 2000 to 80% in 2020 – creating a $30B vacation rental market. As that happened the vacation rental market became technology driven and shifted. Many homeowners that were paying traditional Vacation Property Managers 30-40% of their rental revenues are moving to DIY marketing with AirBnB and VRBO  – a process they can manage remotely. Some are even outsourcing to national rental marketing firms, which exist because technology and automated systems manage a great deal of the upfront renting of vacation homes.

To keep renters happy, these owners require a lot of local services. Services like regular inspections, cleaning, handyman, spa & pool care, groundskeeping and more. Services that have to happen locally, with real boots on the ground. That’s where Second Home Care comes in, partnering with owners and national rental firms to ensure the homes are safe and guest ready.

We are part of the disruption, because our flat fee model can save thousands of dollars per month for clients that rent their homes out. Our flat fee allows us to focus on keeping the asset maintained; owners find the decreased costs allow them to rent less or increase ROI – and  enjoy their home more.

Second Home Care Clients that market their own rentals through AirBnB or VRBO can save thousands of dollars.

3 Bedroom; Light Rental Example
  Second Home Care Traditional Property Manager
Weeks rented per month 2 2 weeks/month
Rental Revenue/Night $350 $350 per night
Revenue Share $0 $1,470 30% rev share
Management Fees* $175 $0
Cleaning/Repairs Costs $550 $550 same $ regardless
Total Monthly Expenses $725 $2,020
Monthly Savings with Second Home Care $1,295

*Membership with 1 time per month inpection
Vs Traditional Property Mgmt Revenue Share model

5 Bedroom; Heavy Rental Example
  Second Home Care Traditional Property Manager
Weeks rented per month 3 3 weeks/month
Rental Revenue/Night $500 $500 per night
Revenue Share $0 $3,150 30% rev share
Management Fees** $300 $0
Cleaning/Repairs/Spa Costs $1,050 $1,050 same $ regardless
Total Monthly Expenses $1350 $4,200
Monthly Savings with Second Home Care $2.850

**Membership with 4 time per month inpection
Vs Traditional Property Mgmt Revenue Share model

Industry Data
  • National Association of Realtors reports that "vacation home sales have been surging during the pandemic, according to NAR's recently released 2021 Vacation Home Counties Report. In 2020, vacation home sales rose by 16.4%, outpacing the 5.6% growth in total existing-home sales. Vacation home sales have continued to pick up during January-April 2021, rising by 57.2% year-over-year, more than twice the 20% growth in total existing-home sales during the same period. The share of vacation home sales to total existing-home sales has increased to 6.7% in the first four months of 2021, up from a 5% share in 2019."

    The surge in the demand for vacation homes occurred even during the pandemic and is expected to last!

  • According to National Association of Home Builders (NAHB) estimates, "the total count of second homes was 7.5 million, accounting for 5.5% of the total housing stock in 2018, the most recent data available. As of 2018, the state with the largest stock of second homes was Florida (1.1 million), accounting for 14.5% of all second homes. South Dakota had the smallest stock, approximately 20,000 second homes, among all 50 states.

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  • In-depth analysis of the county level data shows that the concentration of second homes is not simply restricted to conventional locations like beachfront areas. There were 932 counties spread over 49 states, where second homes accounted for at least 10% of the local housing stock.

    Of course, the geographic locations of second homes also correspond to population density. Counties with more than 25,000 second homes are mostly located in or near metropolitan areas, as shown in the map below.

    This increase in Second Home Ownership continues to drive the AirBnb, VRBO and other large technology players in the vacation rental space. Per AirBnB, the have "7.9 million active listings as of December 2020, which is a 2.6% increase from 7.7 million active listings in 2019."

  • Vacation Homes conjure up happiness – and that’s what we really offer: As seen on NPR.org, "a recent study published in the Proceedings of the National Academy of Sciences suggests that when people spend money on time-saving services such as a house cleaner, lawn care or grocery delivery, it can make them feel a little happier. By comparison, money spent on material purchases — aka things — does not boost positive emotions the way we might expect."

We are a great way for all these new owners to buy back what has become for many Americans a scarce resource: free time and happiness.