Over the past decade, home-sharing companies have given the hotel industry a run for its money. As more and more travelers started seeking out short-term rentals across the country, the owners of those properties saw their profits skyrocket. Data shows that in 2018, short-term rentals held an estimated global market valuation of $169 billion.

And in the pack of home rental providers, Airbnb has emerged as the clear leader. Launched in 2008, the company has seen steady year-over-year growth. Last August, it reported a 30% increase in bookings for the first quarter compared to the prior year, which saw $9.4 billion in Q1 revenue. And in 2018, the company brought in 40% more revenue than the previous year. By all accounts, Airbnb expected such growth to continue into 2020.

COVID-19 had other ideas.

Airbnb owners feel the pressure

Travel and tourism is one of the hardest-hit sectors since the pandemic. In the first week of March 2020, Airbnb’s reservations fell 18% compared to the previous year. And by the first week of April, the company saw its bookings plunge a staggering 95%. Airbnb cut a quarter of its workforce, and the CEO reported that 2020’s revenue would be half that of 2019.

This plunge is likely not permanent. By early June, Airbnb and other online travel agencies (OTAs) were already reporting a surge in bookings as people started to venture out again. Even so, many Airbnb property owners, rattled by months of lost income and an uncertain future, have made the decision to sell off their properties.

Amy Offield, who owns a vacation rental in Galveston, Texas, decided to unload her beach bungalow and shut down her Airbnb business in May after losing all of her income over the past three months, she told CNN Business. And there are plenty of others following in her footsteps.

If you’re one of them, you might be wondering how to get started, and how selling an Airbnb is different than selling a regular property. We spoke with some experienced investors and a top real estate agent to find out what’s involved in saying “adios” to an Airbnb.

Know Airbnb’s unique terms and conditions

Airbnb doesn’t allow owners to transfer their accounts to another owner. According to the terms listed on the company’s site, “You may not assign or otherwise transfer your Airbnb account to another party.” That means you can’t transfer any existing bookings or reviews; otherwise, you could risk getting kicked off the site.

So, rather than selling the Airbnb account, you’ll just be selling the property itself, along with any portfolio you’ve created for that company.

“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. “You could keep the same listing, but you would have to work with Airbnb to get that to go through.”

Before listing your Airbnb, you’ll need to ensure that all bookings are finished and the property is clean and ready for the buyer to use, notes Smith. You could also consider negotiating the sale of the furniture in the deal, so the buyer could use the same pictures in the new listing.

In many cases, the seller of an Airbnb will also pass along any contracts or contacts they might have for service or maintenance, says Cheryl Coleman, a top real estate agent in Huntington Beach, California, who has owned many short-term rental properties. “If the buyer intends to continue renting out the property, they might choose to use the same services for cleaning, gardening, and repairs,” she points out.

Calculate value and income potential

When pricing a regular home for sale, the most important factors in determining a fair price are neighborhood comps, the local market, size, location, condition, and upgrades. But with an Airbnb, the rental aspect can add significant value to a home.

“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.

What’s the average income for the property?

When a lender assesses a rental property, they typically look at the average income it brought in over the last three months, he says. This will give the buyer, investor, and/or lender a good idea of how much income potential they can expect to receive along with the property itself.

What other value-adds does the property have?

Of course, during an economic downturn like the one caused by COVID-19, some sellers may struggle to capture the same prices as they would in a thriving market.

“It may be harder to sell your property at a premium unless you can show that it’s in a great location, that there are still many guests staying with you and the home is well-maintained,” says Smith. “But great properties do continue to do well, even during tough economic times.”

Who is your ideal buyer?

When pricing your Airbnb, know who your ideal buyer is, says Mike Tewel, a property investor in Miami Beach, Florida.

“If you’re targeting a larger real estate investor, they are normally looking at cap rates,” he says. The cap rate, or capitalization percentage rate, refers to the rate of return earned from a real estate investment. It can be calculated by dividing the net operating income by the property asset value.

If you’re selling to a smaller investor, such as an owner-operator, Tewel notes that they will look at the numbers differently, and will more likely compare your Airbnb to similar properties that recently sold in the area.

Market the rental with amazing photos

According to Airbnb, property owners get an average of 24% more bookings and 40% more earnings by including professional photos in their listings — and the same logic holds true when selling your Airbnb. Just as travelers seek out photos when choosing a place to stay, buyers and investors will be much more likely to request a showing if they see high-quality images of your property.

“If your pictures look sad and old, no one will want to stay there, much less buy the property,” says Smith.

If you have the budget to hire a photographer, professional photos can give your listing a visual edge over the competition. If you decide to take the images yourself, Airdna, a data analysis company that tracks the performance of more than 10 million Airbnb properties around the world, offers these DIY photography tips:

• Choose the main photo carefully. Airdna calls this the “magnet photo” — the hero shot that draws potential buyers deeper into your listing. Be sure to use the strongest image that best highlights your Airbnb’s biggest selling points.
• Make smart use of color. A surprising pop of color amid a sea of neutral photos will grab the buyer’s eye and make them more likely to dig into your listing.
• Hit the “sweet spot” on number of photos. Airdna recommends including at least 20 photos, but no more than 40. Out of those images, at least one-third of them — but no more than two-thirds — should be interior shots.
• Peruse other property photos, then make yours stand out. The key is for your Airbnb images to look different (in a good way) from other properties for sale. For example, if most of the other Airbnbs in your price range and location have a neutral living room as the magnet photo, consider leading with a shot of your unit’s amazing, updated kitchen.
• Use landscape mode. Airdna recommends using a horizontal orientation to show more of your property’s selling points and convey more spaciousness. With portrait mode, you run the risk of cropping out some important features.

Use rave reviews to speed up your sale

Great reviews go hand-in-hand with strong photos. Just as reviews provide third-party validation that makes guests feel safe and comfortable staying at the home, they can also assure buyers that their own guests will feel safe and comfortable staying there, says Tewel.

“If you provide good service and your property is well-maintained, you should be able to accumulate many good reviews. These should be saved and used in advertising when listing the property for sale,” says Smith. “Demonstrating that objective third parties enjoyed your property, the location, and the amenities should help convince a skeptical buyer. It’s hard to fake hundreds of great reviews.”

Consider selling to a former guest

While it’s not a hard-and-fast requirement, partnering with an agent who has had experience selling Airbnbs and understands the challenges could give you an advantage in selling your short-term rental, especially in an unstable market.

Plus, a specialized agent could help to instill more trust in potential buyers. Some buyers could be a little hesitant about purchasing an Airbnb where renters have stayed, as there is sometimes the connotation that short-term tenants put more wear and tear on a property.

In reality, Smith says that only a small portion of the population treats short-term rentals badly, and even if damage is done, the buyer could take advantage of Airbnb’s insurance policy to make any necessary repairs.

“I would argue that a rental property that keeps constant guests actually has more maintenance and upkeep than a regular home because it is a business rather than a residence,” Smith points out. A good agent can point these facts out to buyers so they know they are buying a premium product that has been proven by many others before they stumbled upon it.