If you want to succeed in the short-term rental industry, focus on one thing: removing friction. That is easier said than done because you are constantly balancing three different interests. You have your business goals as a management company, the expectations of property owners, and the guest experience. Among these, one factor often determines your success or failure.
Owners can easily become the biggest obstacle to delivering a great guest experience. Strong expertise and clear processes are what keep that from happening.
This episode explores how mastering this balance changes perspectives, reshapes owner relationships, and raises the standard for professional operators across the industry.
STR Global Unlocked Podcast | Episode 7
EPISODE 7 WITH CLIFF JOHNSON, PADSPLIT PRESIDENT AND VACASA CO-FOUNDER
Sun Valley, Idaho, might look like the perfect spot for a short-term rental venture. The town is small, built around its ski culture, and surrounded by postcard-worthy scenery. A few nights there sound like a dream stay.
Yet when Cliff Johnson and co-founder Eric Breon began operating there, they faced a great challenge. Property owners had unrealistic expectations about their homes, and revenue never matched what they imagined.
Then came Belize and South Dakota, each bringing its own set of challenges. Every new market revealed something unpredictable.
For Cliff and Eric, this became one of the first big lessons behind Vacasa’s growth: every destination had its own rhythm, and success depended on learning its nuances. To make sense of it, they created market archetypes and refined them through trial and error.
Vacasa’s early years were built on smart choices, quick pivots, and seven years of disciplined bootstrapping. That foundation eventually turned their small experiment into one of the largest short-term rental management companies in the United States.
Cliff Johnson sat down with Simon Lehmann, CEO of AJL Atelier, to discuss Vacasa’s evolution, his decision to leave the company, and the lessons learned along the way.
“Raise when you don't need it, that's the best time to raise.”
In this conversation, they cover:
How Cliff and Eric built Vacasa during the 2008 recession and turned it into a national brand.
Why the company’s focus shifted from mission and quality to growth at all costs, and what that revealed about the industry.
The realities of raising capital and how positioning as a tech company shaped investor interest.
What went wrong in scaling internationally and what Vacasa’s global expansion taught them.
Why operational excellence and strong teams remain key to long-term success in short-term rentals.
How property managers can balance owner expectations with guest satisfaction and sustainable profitability.
🎧 This week's episode of STR Global Unlocked features Cliff Johnson, Co-Founder of Vacasa and President at PadSplit.
Watch our episode here.
Key STR Trends
INDUSTRY CHECK-IN
In 2021, short-term rental operator Sonder went public with a market cap of 2.2 billion dollars. By 2024, the company seemed to find its next big opportunity when it signed a partnership with Marriott to manage apartment-style lodging. It looked like the perfect fit.
But by 2025, Sonder’s valuation had collapsed to 6.8 million dollars, a 99 percent drop. On November 9, Marriott terminated the agreement, marking the company’s final blow. The move sent Sonder into freefall, effectively erasing it from the industry. As expert Sébastien Long pointed out on LinkedIn, the news shocked many across the sector.
Sonder’s downfall exposed the risks behind partnerships between major hotel brands and financially unstable operators. These strategic experiments may look promising on paper, but they can collapse quickly when the fundamentals aren’t strong.
For a deeper breakdown of what went wrong and why the warning signs were visible, read the full analysis in this Skift article.
Source: travelmarketreport
Weekly News
WORTH A READ
Want to stay on top of the industry? Each issue brings you key insights, major headlines, and the latest tech shaping travel and short-term rentals.
Airbnb and Hurricane Melissa
Hurricane Melissa hit Jamaica hard, leaving homes and rental properties flooded. One host’s story raises questions about Airbnb’s response and support for affected landlords.
New York’s New Mayor and Housing Policy
New York continues to be a focal point in the short-term rental debate. With a new mayor stepping in, all eyes are on how the administration will tackle the city’s ongoing housing challenges.
OTAs and Hotels Refocus on the Guest
Online travel agencies and hotels are shifting priorities toward guest trust, emotional connection, and memorable experiences rather than channel dominance.
CLOSING THOUGHTS
Removing friction should be a top priority for every short-term rental operator. The challenge is that friction appears in many forms, often where you least expect it.
Today’s guest shares why understanding each destination’s nuances is essential and how every operational decision should ultimately serve the people involved; owners, guests, and teams alike.
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