Key Takeaways

  • Casago says it has completed the sale of all former Vacasa markets to local franchise owners and other operators
  • The move replaces Vacasa’s centralized management model with locally run teams backed by Casago’s national platform
  • Casago expects the final market transitions to local or new ownership structures to wrap up in September

Property management and vacation rental company Casago has finished selling off all of the former Vacasa markets it acquired last year, the company confirmed in a press release on Thursday, Aug. 20.

The move hands local operations to franchise owners and other new ownership groups instead of continuing Vacasa’s longtime centralized management model.

The final transitions are expected to wrap up in September, just over a year after Casago completed its acquisition of Vacasa, which had grown into the industry’s largest vacation rental management company by buying scores of local operators and bringing them under one corporate structure.

The combined company managed more than 40,000 vacation rentals across North America, Belize, Costa Rica and the Caribbean when the deal closed.

Casago took a very different approach from the start.

Instead of running former Vacasa markets from one central operation, it began putting them back into the hands of local owners who run the day-to-day business while using Casago’s technology, distribution, operating standards and national brand.

Some of those franchisees now operate a single destination, while larger regional partners have taken over several markets with their own local teams.

“We set out with a clear vision: to bring vacation rental management back to local ownership, local accountability and local hospitality,” Casago President Joe Riley said, adding, “Now that vision has become a reality.”

“The former Vacasa markets are all in the hands of franchise owners who know their communities, care deeply about homeowners and guests, and are committed to building sustainable businesses in the destinations they serve. The speed in which we were able to sell these markets to our new partners was in the hands of our Franchise Sales team who worked incredibly hard over the past year to make this happen,” Riley added.

Casago bets vacation rental management works better locally

The strategy amounts to a reversal of much of what Vacasa spent years building.

Vacasa expanded by acquiring local vacation rental managers and folding their homes, employees and operations into a much larger centralized company. Casago is keeping the scale and national resources but putting local operators back in charge of individual markets.

For homeowners, that means the person overseeing their rental may once again be someone who lives and works in the same destination, rather than a manager operating inside a much larger corporate structure.

Riley said Casago believes that is where the vacation rental industry is heading.

“…This is about much more than a change in structure. It signals where the vacation rental industry is heading. Homeowners want trusted local partners,” he said in a press release. “Guests want consistent service with a personal touch. Communities want operators who are invested for the long term. Our franchise model brings those priorities together under one trusted national brand.”

The transition has happened quickly considering the size of the former Vacasa network.

Casago Chief Operations Officer John Banczak said the company moved from acquisition to full market transition in a little more than a year while trying to maintain continuity for homeowners, guests and employees.

“The speed and scale of this transformation has been remarkable. In just over 12 months, Casago has moved from acquisition to full market transition while maintaining continuity for homeowners, guests and local teams,” said Banczak.

“That is a testament to the strength of the franchise model and to the owners who have stepped forward to lead these markets into their next chapter. Behind the scenes, there were countless employees on the Franchise Conversion Team and beyond that created and executed a process to equip our partners with the ability to succeed right out of the gate,” he added.

Related: Short-term rental rates rise in 49 of 50 top markets as RevPAR climbs 7.2%

The change matters for thousands of vacation rental homeowners who previously worked with Vacasa and are now dealing with locally owned management companies operating under the Casago network.

It also gives the industry a real-world test of two very different ways to scale vacation rental management. Vacasa spent years building a large centralized operator. Casago is betting the better model is a national company powered by local owners who have more direct responsibility for the homes, guests and communities they serve.

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