Considerations when selling a home listed on Airbnb, Booking.com, and VRBO
Do you own a short term rental property listed on websites such as Airbnb, Booking.com, Canada Stays, VRBO, etc. that you are considering selling? With years of experience managing scenarios just like this, we’ve compiled a few items to consider.
Reservations & Cancellations
All reservations are considered non-cancellable. Imposing a cancellation on a guest means cancelling someones vacation, and the online travel agencies do not take it lightly. Fees may be as high as 50% of the reservation cost, plus HST.
Cancellations also have a negative effect on the host account. With as little as one cancellation, a host cannot qualify as a superhost. This makes it difficult for multi-listing hosts to maintain superhost status.
Have a conversation with your Realtor prior to listing the property to ensure they know your home is being operated as a short term rental. It is important they schedule showings around reservations, such as during turnover days or intentionally blocked days. Showings while the home is occupied is a huge short term rental no-no, as it breaches guests privacy and almost always means an upset guest. We suggest offering 50% of one-nights accommodation fare if a showing is being imposed on a guest.
Book Out Window
The book out window is the time in advance that you accept reservations. While a home is for sale we recommend a 30 day book out window, up to a maximum of 90 days. This allows you to set a closing date after the last reservation.
Property Management Agreement
As an Over Sea client, your Management Agreement is always cancellable as of the last confirmed reservation. This makes it easy for you to end the agreement in the event of a sale!
Still have questions about short term rentals? Email Over Sea now.