Are you tired of waiting for new rentals each month (or even daily/weekly)? Are you ready to get out of the “hotel” business in San Diego?
While owning an AirBnB can be rewarding, and profitable, the time will come when you decide you are done and want to move on. Maybe you need the capital you’ve invested into your vacation rental or maybe you are just tired of running a business.
If you are considering selling your vacation rental in San Diego county here are some things you should consider the following:
- Discuss with Your Property Management
If you don’t self-manage you want to be sure to discuss your plans with your property manager or property management company. They may have a buyer for you in their pool of owners looking to add inventory to their own portfolio! You also want to be sure they understand your long-term plans and how it might affect future bookings, etc.
- Know Your Numbers
Make sure you run the numbers to make sure selling is the right financial move. Perhaps you’ve owned the property for a few years and paid down the mortgage, but you need to consider the capital improvements and repair expenses as well as all of the furnishings you’ve purchased for the unit when determining at what price is right to sell.
Most importantly you want to know your financials as it relates to your cash flow and profit each year on your rental. This will be key to getting the most for your vacation rental.
- Understand When is the Best Time To Sell?
You may want to consider listing your home in high season, especially if your home is in an area that is predominantly vacation homes. This will allow for the most eyes and interest on your property. However, in order to do so you need to have your property vacant for prospective buyers to view the property. This can cut into your rental income big time.
- Think About When You Will be Able To Show the Property to Prospective Buyers
Once you’ve decided to sell you should discuss when you will show the property – will it interfere with bookings and reservations? You may need to set aside certain days and times for showings – which may need to be during vacancies. You could offer your guests a fee if they allow a home to be shown (but possibly risk a bad review – no one wants to be inconvenienced during a vacation stay).
- Who will list your property for sale?
You have several options. You could list your property yourself online through Craigslist and other For Sale By Owner sites and possibly find a buyer. However, the more people who see your property for sale the better chances you may have for getting the best offer. Listing with a traditional Realtor may be the best option. However, be careful of who you choose to list your property for sale. You should choose someone who is familiar with the area, especially if you are in a city where your buyer may be a traditional buyer just looking for a new home and not necessarily a vacation home. If your AirBnB is in a primarily second home or vacation home prominent area (beaches, mountain resorts, etc) you may want to choose someone who sells directly to second home or vacation rental investors – an investor who wants to continue using the property as a vacation home will see the value in the marketing and social media and websites that you may have created over the years for your unit.
You could also simply sell to an investor and avoid all of the concerns with showings and lost revenue. An investor will be able to close on a day of your choosing without endless showings, etc.
- Determine the value of your AirBnB
As we mentioned above you may have several different types of buyers. Both scenarios are pretty unique as a retail buyer just looking for a home will use only comparable sales to determine the right price for you home. However, a second home buyer may add value for amenities and the furnishings. And most importantly, an investor may consider the value of your property not only on comparable properties but the revenue your property generates each month.
There are many things to consider when deciding to sell an AirBnB property in San Diego. For a free consultation on what options may be right for you please give us a call today!