Understanding Pacaso Co-Ownership Costs: A Transparent Breakdown
Tuesday, March 18, 2025
Pacaso has transformed second homeownership through its innovative co-ownership model, making luxury vacation homes more accessible and manageable.
If you plan to use your second home only a few weeks or months each year, you may need to rent it out to cover expenses or rely on trustworthy local vendors to handle renting and maintenance—especially if issues arise while you’re away.
With Pacaso’s co-ownership model, renting out your home isn’t necessary, as expenses are significantly reduced and property management services are included, offering you peace of mind. Instead of bearing the full costs of ownership, maintenance, and management on your own, as you would with a traditional second home, you share these expenses with other co-owners.
One of the key advantages of Pacaso is that it eliminates the typical hassles of second homeownership by taking care of the burdensome tasks for you. Their property management team ensures your home is well-maintained, prepared for your next visit, and handles everything from bills and cleaning to maintenance and even property tax payments on your behalf.
By sharing costs and responsibilities with other co-owners, you can enjoy all the benefits of a second home without the full financial and logistical burden. Here’s a detailed look at how Pacaso determines share prices, manages ongoing costs, and ensures a hassle-free ownership experience.
Determining the Share Price
Determining the Share Price
When browsing Pacaso listings, the price you see reflects the cost to purchase a 1/8 ownership share of the home. If you’re interested in a larger share, you can multiply the listed price by the number of shares you wish to purchase, up to four shares (equivalent to 1/2 ownership of the home). The share price is calculated based on the following components:
- Whole Home Purchase Price: This is the amount Pacaso paid to acquire the home on the open market.
- Home Upgrades and Closing Costs: Each home undergoes a design makeover to create a luxurious, move-in-ready space. This includes high-end furnishings, state-of-the-art appliances, and thoughtful details like kitchen gadgets and board games. Additionally, Pacaso covers real estate transaction costs (agent commissions, inspections, and closing fees) and completes any necessary maintenance work.
- Pacaso Service Fee: A one-time fee covers buyer aggregation (finding and vetting qualified co-owners), LLC formation (including legal fees), and onboarding the home (installing and furnishing).
- Financing Fee: For buyers who choose to finance up to 70% of their purchase through Pacaso, a financing fee is assessed at closing. Pacaso offers competitive financing with zero interest for up to 36 months on select listings, as well as 5% financing on eligible resale homes.
For listings that are not yet fully furnished, Pacaso estimates the share price using the same criteria. However, the final price may be adjusted slightly once the home is fully upgraded and ready for co-ownership.
Ongoing Monthly Costs
Ongoing Monthly Costs
Pacaso simplifies ongoing expenses by budgeting for annual costs and breaking them into 12 monthly payments. These costs are shared among co-owners based on their ownership share and are deposited into the LLC account. Monthly expenses include:
- Financing: Individualized based on your financing terms.
- Property Management: Pacaso provides in-house property management in most regions or partners with experienced local companies to handle day-to-day needs. This includes maintaining the multi-member LLC, resolving disputes, managing billing, and ensuring the home is in excellent condition.
- Preventive and Routine Maintenance: Covers landscaping, pool maintenance, snow removal, HVAC servicing, gutter cleaning, and more.
- Technology Systems: Includes access to the Pacaso app and SmartStay technology, which simplifies scheduling and ensures equitable usage for all owners.
- Household expenses: Covers utilities (gas, electric, water, sewage, garbage, and internet/TV) and ad hoc maintenance services.
- Taxes and Insurance: Pacaso manages property tax payments and homeowners insurance premiums, providing each owner with an annual K-1 tax form for reporting purposes.
- Reserve Fund: Maintained to cover unforeseen or long-term expenses, such as roof replacements or major repairs.
Monthly expenses may adjust quarterly to reflect changes in actual costs, such as insurance or tax increases. Pacaso proactively communicates these adjustments to owners and provides detailed documentation on request.
Turnover Services
Turnover Services
To ensure the home is always stay-ready, Pacaso charges a turnover fee after each stay. This fee covers cleaning, replenishing home essentials, assessing inventory, and conducting light functionality checks. This ensures the property is in perfect condition for the next owner.
Conclusion
Conclusion
Pacaso is committed to providing a stress-free ownership experience by handling all the complexities of homeownership—from maintenance and utilities to taxes and scheduling. Pacaso allows you to focus on what truly matters: enjoying your second home and creating lasting memories.
With clear cost breakdowns, meticulous management, and a focus on luxury and convenience, Pacaso makes second homeownership both affordable and enjoyable.
Dream of owning a vacation home in Florida, Mexico, or Europe? Check out co-ownership options with our partner, Pacaso. You can enjoy your piece of paradise without breaking the bank, paying high carrying costs, or dealing with management hassles.
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No debt, no ongoing costs? Yes, it’s possible!
If you haven’t read my book yet, grab your copy now. You’ll discover how combining vacation home co-ownership with investment property ownership can offset much of the expense. Imagine owning a piece of vacation paradise without the financial burden—it’s within your reach!
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For those looking to explore exciting investment opportunities in the Florida market with my partner, SIH, click here to get started. Alternatively, reach out to us today for more information or schedule a call with me
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Co-Ownership Can Forever Change The Way You Vacation
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Co-Ownership Can Forever Change The Way You Vacation
Hi, I'm Eugene
Founder of FloridianHome.ca
Hi, I'm Eugene
Founder of FloridianHome.ca
My partners and I have come up with smart strategies that can enhance your second home ownership experience and open up possibilities you may not have considered before.
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