Fractional vacation home ownership provider reviews (Pacaso, Kocomo, Everomes, ReAlpha etc)
Do you want to take advantage of the rapid rise of the home-sharing economy but don’t have the capital to invest?
In 2022, you can be an Airbnb or vacation homeowner with $100, via investing in a fractional short-term rental fund. They will allow you to buy a share of vacation property similar to buying a share of a company. Keep on reading to learn more!
Why invest in Short-term Rentals?
Before diving deeper into fractional short-term rental funds, let’s see why one would want to invest in vacation homes.
The home-sharing economy is rapidly growing even during the pandemic, in fact, the pandemic was the opportunity for Airbnb to take a big share of hotel businesses. In major staycation destinations in the US, we have observed a 32% – 51% surge in 2021 alone.
A typical long-term rental property generates 1-5% a year but a short-term rental produces 5-25% a year. It is riskier and less passive than managing long-term rentals, but this can be an attractive option for someone who has retired and is looking forward to doing a small amount of work while befriending guests!
How do I choose the right fractional vacation home ownership company?
Companies like Pacaso, Here, Everomes, Kocomo, and PartBnb allow you to purchase a share of a specific vacation home. This gives you full control of choosing a vacation home for investing. On the other hand, ReAlpha is a short-term rental fund, so they’ll manage a bunch of short-term rental portfolios and you are buying a fractional share of the portfolios.
One of the benefits of investing in a fund is a lower risk since they will hedge their risk by investing in multiple properties.
As I mentioned earlier, you can invest with as little as $100 for Here or $1,000 for ReAlpha. Yet, if you are looking to have more “real” ownership (also known as vacation home co-ownership) like staying at the property you partially own, Picasso or Everomes offer what you need. You have to purchase at least 15% of the entire property price, yet you can stay in those properties for up to 6 weeks a year. If staying at a vacation rental a few weeks a year is what you need, these offers may work better.
Looking for Partial vacation homeownership in the US & Mexico?
Kocomo probably is the best bet if you are looking for somewhere close to the US. It is a Mexico-based startup with about a $60M fund available for investing in vacation rentals. They currently have 27 vacation rentals in both Mexico and Miami.
Here.co was only founded in 2022, and they have secured $2 million in funding in a pre-seed round, and they will start investing in Florida vacation homes. You can start investing with as little as $100, but they only have 1 property for investment currently! PartBNB focuses on Caribbean vacation homes, and they have 3 upcoming investment opportunities.
