Turnkey Management, Vacasa, or Evolve? How to Choose a Vacation Rental Property Management Company
UPDATED
1/16/2019 | Christopher D. Davis
The differences between Vacasa, TurnKey, and Evolve
Trying to decide which vacation rental property management companies are best? In this post, we’ll take a detailed look at three of the largest national vacation rental management companies, what their management fees are, and what you get for your money.
Specifically, Vacasa, Evolve, and TurnKey have emerged as major players in the industry. All three have carved out their own space with distinct business models that have helped them attract funding, resulting in explosive growth, further innovation, and fewer barriers to entry. All this has in turn brought even more homeowners into the industry, contributing to a positive feedback loop.
As a full-service vacation rental manager and hospitality company that specializes in care for luxury homes, InvitedHome has its own niche within the industry, which you can learn about on our own property management page. Or, check out our interview with Sotheby's International Realty here to see how we focus on the luxury homeowner and guest.
We've taken a slightly different approach to vacation rental management. We take the time to find the right owners, with the right homes, who will fit the right guests. This means absolute dedication to and unrivaled care for the homeowners we work with, and a consistent experience for all our guests. It's the only way to achieve the highest NPS (net promoter score) in the industry, and recognition from sites like Airbnb Luxe and Luxury Retreats.
Management fees and additional costs
The management fees for each company are as follows:
- Vacasa Management Fee: Starting at 18%
- TurnKey Management Fee: 18%
- Evolve Property Management Fee: 10%
Vacasa Vs. TurnKey Vs. Evolve
Vacasa
- Guest support
- Guest screening
- PR and social media
- Marketing and copywriting
- Photography
- Help with regulations and permitting
- Revenue management
- A 12% general booking fee
- A cleaning fee
- $10/night hot tub fee
- A pet fee
TurnKey
- Photography and listing descriptions
- Managing listings on multiple vacation rental sites
- Revenue management
- Guest services
- Guest screening
- Digital locks
- Coordinating with third-party maintenance
- On the ground field operations
- Homeowners are charged a resupply fee of $7 per booking. This averages to about $250 per year for homeowners.
- Guest are charged a 9% booking fee
Evolve
- Managing listings across multiple online travel agencies
- Guest communications
- Professional photography and copywriting
- Recommendations on local maintenance/housekeeping companies
- Dynamic pricing
- Guest screening
How do these companies operate on such low commissions?
At first glance, these low commission rates are extremely compelling, but they may come with additional ancillary fees to support operations.
If you've read any of Vacasa's property management reviews, you've seen the company allegedly keeps the revenue from its additional guest fees - including the pet fees, hot tub fees, early check-in and late check-out fees, and the booking fee - rather than remitting these fees to the property owners, according to one recent lawsuit against the company. With more than 8,000 Vacasa vacation rentals around the world, it’s also one of the largest, and can drive revenue through volume.
TurnKey has recently received tens of millions of dollars in funding, which has helped the company expand its portfolio to approximately 3,500 homes as of March 2018. The sheer volume of homes and TurnKey’s innovative technology - like its digital locks system - help generate revenue while keeping costs down, thus the lower rate.
TurnKey has relatively fewer add-on costs and fees compared with Vacasa, however its employee-to-home ratio stood at about 1:7 at the end of 2017, compared with Vacasa’s 1:4. This tends to be the case for large national companies, which charge a lower commission but bring on huge numbers of homes to make up for it. For context, InvitedHome’s employee-to-home ratio currently stands at about 1:3, which allows us to provide the high-touch care our luxury homeowners have come to expect.
Evolve has more homes in its vacation rental network than TurnKey and possibly even Vacasa. As of 2019, it was reported the company was managing as many as 10,000 homes. With such a high volume and limited offerings, it’s able to charge its flat 10% commission. Evolve property management reviews suggest it's a great option for those who want to continue using and paying for their own maintenance, cleaning, and inspection crews, and only need marketing services for their vacation rental. Evolve rental reviews also show that the a la carte model is a unique offering in this space.
How does InvitedHome compare?
InvitedHome operates differently. We offer products and services that are completely unique within the industry and created specifically for the luxury market. We've developed a single inclusive fee structure that allows us to provide unparalleled care for not only our homes, but also our homeowners. And with only a 5% booking fee, we've created a guest experience that's truly one of a kind, and has led to our industry-leading NPS scores quarter after quarter. Here's how we do it.
Cash
- Daily responsive rate generation/dynamic pricing
- Financial analysis
- A custom asset management plan
- Accurate revenue projections
- 24/7 access to your home's financial performance via the Owner Dashboard
- Professional photography and copywriting for optimized listings
- Listing management on more than 30 online travel agencies
- Marketing to an international audience via email, social media, and SEO
Care
- An automated work order system that coordinates maintenance and housekeeping visits
- Extensive inspection before and after every stay, including yours
- Customized checklists for every home
- High-end linens provided
- Two-step guest screening process
- Proprietary HomeCraft technology
- Tax, permit, and regulations management
- Homeowner perks
- Noise monitoring technology
- Detailed and documented home inventory
Communication
- Owner Dashboard via HomeCraft
- A dedicated Homeowner Experience Specialist
- 24/7 guest support
- Manage and request guest reviews
- Guests receive a dedicated Guest Experience Specialist
- Local teams in every destination
- Virtual binders
- Monthly statements
- Prior notification of any maintenance work
At InvitedHome, we offer the best of both worlds: The care, attention, and knowledge of a local vacation rental property manager and the resources, marketing, and innovation of a national company. We’ve successfully brought this model to more than 260 luxury homes in 12 destinations, and are ready to add yours next. Get in touch to see if your vacation home would be a good fit for InvitedHome, and experience the care you deserve.
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