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Short-Term Rental Asset Management & Portfolio Operations

Residential Asset
Operations

Your property managed as a financial instrument. CapEx planning. Holding cost offset tracking. Regulatory compliance. Investor-grade reporting.

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40–55%
Actual operating cost
as a percentage of
gross revenue. Most
pro formas model 20–30%.
The Pro Forma Gap

The Number Your
Pro Forma Didn't Model

A four-bedroom property generates $280,000 in gross booking revenue. The pro forma — built by the previous manager — projected $185,000 in net operating income after a 20% management fee and "miscellaneous expenses." The actual net: $118,000. That $67,000 gap wasn't theft. It was the expense categories the model never included.

Where did $67,000 go? Turnover costs at $400+ per clean, 80–100 times per year: $32,000–$40,000. Platform commissions at 15–16% on every OTA booking. Climate-driven maintenance that the previous model filed under "miscellaneous." A CapEx reserve that wasn't funded at all — meaning the property was consuming its own physical condition to inflate short-term returns.

Residential asset operations is the discipline of managing the gap between what a property’s pro forma promises and what its P&L actually delivers — whether the asset sits in Miami’s three-layer regulatory framework, Houston’s HOA landscape, or Tulum’s evolving federal structure. It starts with modeling the real expense stack, funds the CapEx reserve from day one, and reports net yield against the owner's actual holding costs — not against a gross revenue number that nobody takes home.

Four Disciplines

Managing the Property
as an Investment

CapEx Planning

Every property under management has a funded reserve account — 8–12% of gross revenue, set aside annually regardless of whether it's deployed that year. The reserve is not a discretionary budget. It's a recognition that every fixture, surface, and appliance in a high-turnover property is on a hospitality depreciation schedule. When the mattresses need replacing at month 24, the money is already allocated. When the major refresh arrives at year 5, it's a planned capital event — not a surprise that forces the owner to fund from outside the operation.

Funded ReserveDepreciation ScheduleCapital PlanningNo Surprise Calls
01
Funded reserve at 8–12% of gross, set aside annually
of four investment disciplines
The Replacement Cycle

Asset Lifecycle
Planning

A short-term rental depreciates on a hospitality timeline, not a residential one. Every fixture, surface, and appliance wears at a rate that residential ownership never approaches. Click any phase to see the cost range.

Year 1–2›
Annual Replacements
Linens, towels, pillows, kitchen smalls, welcome amenities, consumable décor
Year 2–4›
Mid-Cycle Refresh
Mattresses, sofa cushions, accent chairs, small appliances, bathroom hardware, exterior paint
Year 4–7›
Major Refresh
Full furniture replacement, flooring in high-traffic zones, fixture upgrades, outdoor furniture, pool equipment, HVAC service, smart home technology
Questions

Frequently Asked

Standard property management optimizes for occupancy and reports gross revenue. Residential asset operations optimizes for net yield and models the full expense stack before the first booking is accepted. The question it answers isn't "how much did the property collect?" — it's "is this asset outperforming the alternative uses of the capital tied up in it?"

A CapEx reserve is an annual set-aside — typically 8–12% of gross revenue — that funds the inevitable replacement of furniture, fixtures, appliances, and building systems. Without it, the property runs profitably for two or three years, then requires $40,000–$60,000 in refreshment that the owner funds out of pocket. The reserve converts a future surprise into a planned line item.

Monthly statements show net operating income against your fixed carrying costs: mortgage payment, property tax, insurance, HOA, and any special assessments. You see whether the property is covering its carry, building surplus, or requiring subsidy — every month, not at year-end.

Yes. We maintain current licensing, file required tax registrations, and monitor regulatory changes in each market. Miami requires state, county, and municipal authorizations. Houston requires hotel occupancy tax registration. Tulum operates under evolving Mexican federal and state tourism regulations. We handle the paperwork and flag any changes that could affect the property's ability to operate.

Monthly statements itemize gross revenue by channel with commission deductions, operating expenses by category with vendor invoices attached, CapEx reserve contributions and deployments, and net disbursement. The final line shows NOI as a percentage of your holding costs — the single metric that tells you whether the asset is performing.

Yes. Even without a mortgage, the property has carrying costs — property tax, insurance, HOA, and maintenance. NOI tracking against those costs tells you the property's actual return on equity. And the CapEx reserve is equally important for a free-and-clear property — deferred maintenance erodes the asset's value regardless of how it's financed.

Begin with a Portfolio Review

Is Your Property Performing
as an Investment?

We audit your property's real expense stack, model the CapEx reserve, and show you net yield against your actual holding costs. No obligations.