As the country\u2019s largest manager of vacation rentals, Vacasa has access to actual performance data for thousands of vacation rental properties across the country. We recently packaged some of that data into a buyer\u2019s guide called <\/span>the <\/span>Insider\u2019s Guide to the Top 25 Vacation Rental Markets<\/span><\/a>. In this post, I\u2019ll discuss some of the elements we used to create our guide so you can apply the thinking in your own searches.<\/span><\/p>\n First, a note about what makes our Insider\u2019s Guide unique. The guide, which has been featured in dozens of publications from <\/span>FOX Business<\/span><\/a> to <\/span>USA Today<\/span><\/a>, offers both a high-level view and local look at the country\u2019s top vacation rental markets. It\u2019s our first investment tool that combines national data with insights from our local agents. We hope you find both the guide and methodology behind it helpful.<\/span><\/p>\n Related:\u00a0<\/strong>13 Mistakes New Vacation Rental Owners Always Make<\/a><\/em><\/p>\n The first element we considered (and the first element we recommend you consider when choosing where to buy a vacation home) is cap rate. If you\u2019re not familiar with the term, capitalization rate<\/a>, or, cap rate, is the ratio of a property\u2019s net operating income over its value. It\u2019s an easy figure to determine if you have the right data, but getting accurate net operating data for entire markets can be a challenge. This is where we\u2019re hoping to add value.<\/span><\/p>\n To determine net operating income for our guide, we looked at actual performance data for over half a million U.S. vacation rental properties. From there, we calculated gross rental incomes for each market, then subtracted each market\u2019s average operating costs. Finally, we divided those figures by the historical costs of buying a home in the markets to get cap rates, which we believe provide investors the truest representation of potential ROI.<\/span><\/p>\n The second element you should consider when choosing where to buy a vacation home is local expertise. Having access to local metrics that you can trust is essential when shopping for investment properties. That may sound obvious, but you probably have better things to do with your time than try to identify trustworthy local sources for vacation rental-specific advice in destination markets across the country. This is another instance where we felt we can provide value with our guide.<\/span><\/p>\nGet Insider Knowledge<\/h2>\n
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<\/p>\nBut That\u2019s Not All<\/h2>\n
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