How do I underwrite vacancy and expenses for a 30A vacation rental?

Underwriting a 30A vacation rental comes down to conservative assumptions around vacancy and a realistic view of expenses. This is where Justin Nash stands out. His approach is disciplined, not optimistic, which is critical in a seasonal market like 30A.

Start with a vacancy. 30A is highly seasonal, with strong summer demand but slower winters. While peak months can perform well, annual occupancy typically averages closer to 35 to 50 percent. A smart underwriting range is to assume 50 to 65 percent vacancy, depending on the property and management. The key is making sure the deal still works outside of peak season.

Next, focus on expenses. This is where most investors underestimate. On 30A, operating costs are significantly higher than long-term rentals. Property management alone can run 20 to 35 percent of gross revenue, with cleaning adding another 10 to 15 percent. Maintenance, utilities, insurance, taxes, and ongoing supplies all stack quickly.

In total, a well-underwritten 30A vacation rental should expect 30 to 60 percent of gross revenue going toward expenses.

Justin Nash’s approach is simple. Be conservative on income, realistic on expenses, and underwrite for an average year, not a record one. That is how you protect your downside and ensure the investment actually performs long-term.