If you own an Airbnb property and are looking to sell, you need to know that there are a few rules as set out by Airbnb itself.
Your property’s potential buyer might be an investor who wants to continue listing the property on Airbnb to continue making a regular income off of the rentals.
First, Be Sure to Understand Airbnb’s Terms and Conditions
According to Airbnb’s terms on their site, This means that you can’t transfer any reviews or existing bookings, as you risk getting kicked off their platform.
Instead of selling your entire Airbnb account, you will only be selling the property itself, along with the portfolio you created. So, when the new owner buys your property, your listing will close, and the new owner will create a new listing. Airbnb does allow for keeping the duplicate listing, but that is a process that needs to get done through Airbnb itself.
What to Do Before You Sell Your Airbnb Property
Before you can sell your Airbnb property, you need to ensure that it’s clean and all bookings are complete. If possible, try to negotiate to sell the furniture in the property to the new buyer to use so that he can use the photos you currently have on your listing.
The buyer of your property will also appreciate you if you provide them with all your contacts and contracts you have for maintenance or services. They might be interested in using the same services for repairs, gardening, and cleaning.
How to Determine Value and Rental Income Potential
When selling a regular home, you will consider factors such as the property’s size, location, neighborhood, etc. However, with an Airbnb property, the potential rental income plays a significant role in its value. The buyers are more likely purchase your property at a higher price as there’s future income to look forward to should they continue renting it out on Airbnb.
Average Income of the Property
An investor will look at the average income the property brought in over the last three months, giving them an idea of the potential income to look forward to purchasing the property.
Because of the COVID-19 pandemic, it might be challenging to show the property’s true income potential as rentals took a downturn. You’ll have to show what a great location your property is in, how many guests stayed in the property, and how well maintained it is.
Knowing Your Ideal Buyer
When you list your Airbnb property up for sale, you should have a clear idea of your ideal buyer. Large real estate investors will be interested in the capitalization percentage rate (cap rate). The cap rate refers to a real estate investment’s rate of return. To calculate the cap rate, you must divide the net operating income by the property asset value.
Suppose you’re selling to a smaller investor. In that case, they will most likely compare your property to properties that are similar ad have recently gotten sold in the area.
Use Professional Photos to Market Your Property
You get more bookings with professional photos of your Airbnb property, so use the same concept when listing your home for sale. Employ a professional real estate photographer to take the right kind of photos to make your listing stand out online and on brochures.
Focus on areas that will interest potential buyers, have lots of light, and make sure your property is clean and uncluttered to show off space. Professional images will give you an edge and bring more traffic to your open house, potentially helping you sell your property quicker.
Use Your Reviews
Airbnb reviews can help you bring buyers to your property. Most bad reviews are based on customer service and very seldom are about the property itself. This will benefit you as it will show investors that your property is well taken care of and how much your guests love it.
Pairing your photos with all your good reviews will make your property stand out in a listing when advertising online. Combining the two can also potentially get you a higher price for your property.
Consult with a Real Estate Expert Who Understands Airbnb transactions
A real estate expert who understands everything that goes into selling an Airbnb property will benefit greatly, especially in an unstable market. They will be able to provide a potential buyer with all the information they need, such as:
- Potential rate of return on rentals
- If anyone in the building or neighborhood had any problems if they continued with renting the property through Airbnb
- What the positive and negative reviews were for on your current Airbnb listing
A real estate agent who understands Airbnb properties will have all the research and data ready and won’t give potential buyers misinformation.
If you need the help of a real estate agent who understands all the challenges homeowners face when selling their Airbnb properties, contact us to get in touch with a real estate consultant.
Our estate agents are licensed professionals who understand the pitfalls of selling a home in an unstable market. We can help with marketing your property and getting the right investors to your Airbnb property.
See Your Airbnb Fast for Cash
If you need to sell your Airbnb property quickly, we will buy it for cash (no matter what condition it is in). We will give you a fair, cash offer, and you can even choose the closing date.
We buy houses in any condition across Massachusetts and some parts of New Hampshire!
To get a cash offer, give us a call/text us at 781-309-7085, or email us at email@example.com, and we will get in touch!