Owning a vacation rental home is quite the experience. Unlike a permanent residence, you earn income from the property; but unlike a typical rental house, you get to enjoy the home with your own family, too. You get to keep your big chocolate-covered cake and eat some of it, too.
But not every investment is forever. For various reasons, you may need to decide to sell your vacation rental home. Before you put it back on the market, consider these five things that will help you be a smart seller.
#1. Prepare Your Vacation Rental History
While there may be many opportunities to buy a vacation rental in your city, not all of them will have great rental history records. The smartest owners will keep detailed records of their rental income and expenses. By having this data ready to share with your agent, prospective buyers won’t have to calculate the potential rental income.
It’s ok if the property is not a year-round money machine. Some buyers are only looking for supplemental income to help them afford and enjoy the vacation home. With real income reports readily available, they are more likely to feel confident in the property’s potential and make a decision faster.
#2. Check Inventory
Vacation rental homes allow guests to enjoy a home as if it were their own place, including furniture, bedding, bathroom accessories and other conveniences. If you want to improve the success of selling your home quickly, listing it as fully furnished will add a layer of convenience and cost savings for the new owner. (It also saves you the hassle of hiring movers to haul everything out after closing.)
It is important to make a detailed list of inventory in the home with all of the furniture and accessories you plan to include. Similar to a review you might do for your property tax or insurance, record the values of each item and tally it. You may be offering thousands of dollars in quality furnishings that affect your sale price and offer the buyer a smooth transition.
This process will also help you determine which items are in good condition and poor condition, and if you prefer to keep certain items that are valuable to your family.
#3. Do A Maintenance Audit
Even a well-maintained house needs a good audit. Instead of waiting for an inspection, gather all your recent maintenance records and do a walk-through of everything top to bottom. Create a report of all your major appliances with ages and any known repairs. Write down notes about little things that might need some clean up before showings. Gather a file of information about your cleaning, pest control, insurance and other maintenance providers.
If your home is part of a community with an HOA, compile details about any maintenance work the association performed in the last year.
This process will expedite communications with your Realtor for seller’s disclosures and for marketing, and will give you important facts that help you promote the property as accurately as possible. Knowing the facts about the condition of your home up front will prevent chances of buyer remorse later.
#4. Keep Your Rental Listings Alive
You may be ready to sell your rental home and move on, but you shouldn’t hit the brakes on managing it. It could be months before the right buyer comes along. If a buyer is looking for a lucrative investment, they won’t be impressed if the home has very little rental activity. Keeping your rental advertised and thriving enhances the attractiveness of your listing.
If you do plan to shut down online accounts from rental advertising websites, remember to download as many reports as possible about all of the rental history, generated income, and fees. Many websites such as VRBO.com, Airbnb.com and Trip Advisor offer a dashboard with reports for owners. If you hastily shut down your accounts, you could lose that valuable data.
#5. Find An Agent with Expertise in Vacation Rental Homes
There are many experienced professional real estate agents, but not all of them are familiar with the vacation rental market. The best agents will understand how vacation renting works and be familiar with the typical renting climate in that area. They might also be well-connected to property managers and other agents who frequently have prospects to buy vacation rentals.
Don’t forget to extend your advertising exposure by using MoreNests.com to list your property. Tell your real estate agent about the free tools available to promote the home on the website, to make their job easier and get your home sold faster.
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