We have many sellers in our seasonal desert area who also consider renting out their homes while they are on the market for sale. The post below explains how these two things oppose each other ... thanks for a great blog Laura!
If you like this post, please comment on Laura's original blog below!
Tahoe Real Estate - Vacation Rental Income verses Selling your Tahoe Home?
In the Tahoe market we have a number of second home owners that often do short-term vacation rentals. These short term rentals are seasonal, and can often generate significant short-term income for the owner.
When the time comes for a Tahoe owner to sell their property one of the most common seller questions I’m asked is “Can I continue to vacation rent my Tahoe home, while you try and sell it?”
When you hire me to sell your Tahoe lakefront property, home, or condo I only get paid if I do that job. I’m not interested in just getting your listing, I’m planning on getting your Tahoe home sold!
In order to do that job successfully I need to be able to show your property with little to no notice, and your home needs to show well.
Property Showings = Sale
When you hire a vacation rental management company, they only get paid if they rent your Tahoe home. If the home has to be ready to show with little or no notice, then how can they rent it out? How does the vacation rental company get paid if they don’t rent your home?
No Vacation Rentals = No Rental Company Commission!
The two jobs are in competition with each other – Sale of your Home versus Rental Income.
Often Tahoe sellers think listing with a broker that handles their vacation rentals too is the perfect solution to this problem. After all, the broker controls both the sale/listing side and the vacation rental business, so what can go wrong with this combination?
Here’s the catch, when the property is rented out, even with proper notice and with a vacation renters’ consent, how often, or how well do you think your home is going to show to buyers?
Think about what happened the last time you were on vacation? You know what a scramble it is to pick up your hotel room so housekeeping can come in. Can you imagine having to pick up an entire home, or condo while you’re on vacation so a buyer can walk through the place?
Do you really think a vacation renter is really going to clean up, or put their party plans on hold for your buyer showing? How many times do you think someone who is paying top dollar to be at your Tahoe place is going to allow buyer showings to happen? Lastly, how well do you think your home is going to show while a vacation renter is there? Picture perfect is not the first image that comes to mind.
So do you get your property shown, or not, while it’s on a vacation rental program? The same conflict still exists for the broker who is doing both jobs – vacation rental, or selling your home, which job should they focus on?
When I am asked by a Tahoe seller, “should I continue to do vacation rentals at my home, my answer is – ABSOLUTELY NOT if you really want to sell your home!” Stop booking anymore vacation rental business right now. This answer doesn’t win me any friendship points with the vacation rental mangers in town, but it’s what a seller really needs to do if they want to sell in a timely manner. Tahoe property owners that are ready to sell need to choose one, or the other, Vacation Rental, or a For Sale sign, but not both.
No Buyer Showings = No Sale!
Selling your Tahoe home now rather than later.
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For all of your Tahoe real estate needs – Laura Allen, 530.414.1260, Broker Associate, REALTOR®, CRS, ABR®, RSPS, ePRO, Previews Property Specialist, Laura@TahoeLaura.com DRE# 01473598 www.TahoeLauraLuxuryHomes.com, Coldwell Banker Residential Brokerage, Tahoe City, California.
Tahoe Real Estate - Vacation Rental Income verses Selling your home.Laura A. Allen
REALTOR®, DRE# 01473598
CRS, RSPS, ABR®,
Certified Preview Property Specialist
COLDWELL BANKER RESIDENTIAL BROKERAGE
Owned and Operated by NRT WEST, INC. DRE# 01908304
Tahoe City, CA 96145
(530) 414-1260 Phone
(530) 583-2852 Fax