During the pandemic, investors snapped up properties in resort towns all over the country with the intent of turning them into short-term rentals, listing them on websites like Airbnb and Vrbo. Interest in vacation rentals was high as travelers stuck closer to home due to international travel restrictions, and investors benefited from record-low mortgage rates. The number of new Airbnb hosts jumped more than 50% year-over-year in the second quarter of 2022, flooding the market with new listings. Although Airbnb recently recorded its most profitable quarter ever, many hosts say oversaturation in the short-term rentals market has resulted in fewer bookings and lost profits. Combine that with rising labor costs, home insurance, and property taxes, and you may be wondering, “Is selling my Airbnb the right financial move?” If you’re considering putting your vacation rental home on the market, check out our handy guide on how to navigate a successful sale. Plus, get tips from experienced property investors and top-performing real estate agents who understand the changing short-term rental landscape. If you’re selling your Airbnb or Vrbo listing, it’s important to understand the terms and conditions, otherwise, your membership could be revoked. With Airbnb, accounts are assigned to hosts rather than properties. This means your content, photos, listings, and reviews belong to you, not your property. Owners cannot transfer ownership of listings to the new owner when they sell a property. “When an owner sells the property, that listing is closed and the new owner will need to recreate a listing,” explains Luke Smith, property investor and owner of We Buy Property in Kentucky. Smith says you could keep the same listing, but would need to work with Airbnb to make that happen. Before selling your Airbnb, you’ll need to complete all bookings and make sure the property is clean and ready for the buyer to use, notes Smith. Vrbo’s terms and conditions are fairly similar to Airbnb’s. Listings cannot be transferred to the new owner. New owners must create a new account and listing after their purchase; former owners must deactivate their listing. In the event you sell a property, your property description and photos cannot be transferred to the new owner. However, your buyer may request to transfer the listing reviews to the new listing. With a short-term vacation rental, proof of your rental income demonstrates the value of a property as an investment. “When selling a property as a rental, the investor will purchase the property at a premium because they are paying for the actual property along with the future income that it should continue to produce,” explains Smith. When you can provide documentation about property revenue, occupancy rates, and pricing, it allows the investor to see your property’s income potential value and makes your listing appeal to buyers seeking a sound investment. When lenders evaluate income properties, they calculate the median income it brought the owner over the last quarter. In the same way, knowing the rental income potential of a property allows investors to interpret their return on investment. The higher the income potential, the higher the sales price is likely to be.Know Airbnb and Vrbo terms and conditions
Market your Airbnb’s home value and income history to investors
