Whether you are purchasing or selling short term or Airbnb rental property, success often boils down to great seasonal timing. There are advantages to purchasing and selling throughout all times of the year.
Understanding When the Economy's Right
Determining the ideal economic conditions to get or sell an Airbnb or VRBO rental is dependent upon your motivations. As a property manager of a short term rental, you have a fantastic opportunity to beat the market average in a residential buyer's marketplace --particularly in the event that you advertise your house's cap rate and earnings potential.
Financial institutions trying to balance a dip in mortgages may opt to provide far better HELOC and house refinancing alternatives to expand their client base. Familiarizing yourself with vacation rental-specific market tendencies can help you determine whether the timing is right to purchase or sell.
Purchasing Before Peak Season
While looking for a house that is in good shape at a high-traffic geo, you need to seal the deal before peak season. You will have the chance to buy and get advance deposits on the table for bookings already on the books. As you did not have expenses generating the reservations, that is money in your pocket right at the get go. However, those "free" reservations have a price: You are not as inclined to negotiate a reduction on the purchase price.
Purchasing before peak brings the advantage of a great deal of guest revenue around the corner, but these guests are anticipating the house to come supplied for their stay. To prevent bad Airbnb reviews, attempt to buy supplied and turnkey (unless the furniture is a significant update and you're able to get all of it into the house in time).