At the beginning of the COVID pandemic in early 2020 the vacation rental market took a big hit. Then, as work from home became the norm, demand skyrocketed for short term rentals in remote destinations. AirBnB “saw more nights booked for U.S. listings between May 17 and June 3 than the same period in 2019.”
If you own a vacation rental in a beach or mountain vacation destination you likely saw an increase in bookings in the latter half of 2020 and early 2021. So, now is a terrible time sell, right?
Low mortgage rates and strong demand from pandemic buyers looking to purchase has helped push home sales to all-time highs. According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “the lack of supply in the face of strong demand continues to push prices higher and higher.”
People are itching to travel again. But, will demand remain strong for short term rentals in remote areas? Only time will tell. Let’s take a look at reasons why you should consider selling your vacation rental home now.
3 Reasons to sell your vacation rental
The rental business is lucrative until it slows down. While you may be riding high with strong bookings now, it is worth evaluating a possible sale now so you aren’t stuck later.
The property’s life cycle
Sounds strange when we say a property has a life cycle but when you don’t have to time or interest to manage it, why bother keeping it? If the reason for buying it in the first place isn’t prevalent anymore, time to sell it.
Take advantage of strong demand
The purpose of a vacation rental home is to have a stable source of solid income. With such strong sales demand, it may be worth considering a sale to maximize the return on your investment before the market shifts.
Big expenses looming
Are there large maintenance items or capital expenditures you’ll need to address sooner rather than later to keep your vacation rental home in tip top shape? If you aren’t prepared or willing to address them, selling may be a better option before big repairs are looming over you.
Vacation home sale checklist
Once you have decided to list your vacation rental for sale, you need to know when and how to do so. The right time and approach will play in your favor for a better deal. So, when going for a vacation home sale, make sure you:
Pick the right time
There are favorable times for vacation rental sales, depending on the locality. However, most vacation rentals for sale have an influx of interested buyers during the summer months. On the other hand, winter ski season welcomes travelers and buyers to mountain destinations in colder months.
Spell out the profit
When making a pitch for your vacation rental sale, make sure you explain the income potential to the buyer. Tell them what they are purchasing and how to make the most of it. Read more about how to prep your vacation rental for a sale here.
Partner with an Agent
Real Estate agents in the area know the rules and restrictions of the STR market better than anybody. Plus, they are experts in the locality as well, including the nearby attractions and the lifestyle available. Hence, they will be able to make a best sale’s pitch for your vacation rental home.
Moreover, local agents also have connections with good contractors and remodelers, and professional cleaners if necessary. In case your vacation house needs any repairs or cleaning, they can help you get it right.
If you wish to take advantage of today’s strong sellers market in the US, now is a good time to explore selling your vacation rental home. You can submit your listing directly on HighFlyRE here or share this with your Real Estate Agent so we can help you find you targeted buyers for your vacation rental home.