Airbnb has helped homeowners worldwide easily rent their houses and earn steady revenue. Not only hosts but also guests looking for discounted places to stay where they can feel welcome.
These advantages have made Airbnb successful in the demands of traveling the world.
However, many hosts wonder what will happen if they finally sell their house. Perhaps you have been wondering about this, too.
Well, in this article, we will discuss the consequences of selling your Airbnb house and the best action to take.
Terminating Existing Bookings
If you are a host planning to sell your house, you must check first if you have existing bookings. Based on Airbnb policy, hosts should honor their reservations and work it out with the new owner.
It means the new owner will inherit these bookings and must accommodate the guests accordingly. The host needs to communicate with the buyer and ensure they know these obligations.
Impact on Revenue
Choosing to sell your house will affect your revenue stream as an Airbnb rental host. Once you have sold the property already, you can no longer generate income through bookings.
It’s important to decide carefully when doing this, especially when you are not ready for the loss of revenue.
Selling your house may involve additional costs, such as potential repairs or renovation to prepare the property for the new owner.
It means it can reduce the funds you have earned from hosting. You may also need to suspend your listing before selling the house, which can freeze your revenue.
Adjusting Listing Details
if you intend to sell the house a few months away and don’t want to lose the short-term guest, you can adjust the listing details. It is essential that before selling your house, you update your Airbnb listing first.
This is to show that your property is unavailable for future bookings. This transparency helps manage guest expectations and avoids any potential issues or conflicts.
Here are some steps to follow when adjusting your listing details:
Update the Property Description: Change or replace the description of your house and indicate that it is a market for sale there. Mention that you don’t accept bookings anymore after that particular date. Also, indicate that future bookings may be subject to change or cancellation.
Begin by updating the property description to indicate that the house is currently on sale. Mention that the property may no longer be available for bookings after a specific date or that future bookings may be subject to change or cancellation.
Communicate Availability: Explain your specific timeframe of booking the property and its unavailability for bookings. For example, you may say the bookings are available until July 30, and guests can make reservations accordingly. It ensures that you will not be surprised if there are sudden bookings soon.
Update Calendar Availability: Adjust the availability calendar on your Airbnb account to accurately reflect the property’s availability. Block off dates beyond the expected sale date or any other restrictions you want to place. It helps prevent guests from booking dates that may no longer be available due to the sale.
Update House Rules and Policies: Review and change what you have written in your house rules and policies. For example, you may add the cancellation policy for possible cancellation due to selling the property.
Communicate With Existing Guests: If you have guests currently staying in your property, don’t forget to inform them. Explain and provide an apparent reason as to why there will be sudden changes in an excellent way.
Coordinate With Airbnb Support: Contact Airbnb’s customer support to inform them about the property’s sale and any adjustments you have made to the listing details.
Legal and Financial Considerations
It is advisable to consult with legal and financial professionals before selling your Airbnb rental house. They can advise you on local regulations, tax obligations, and potential liabilities associated with the sale.
You should be informed about legal and financial aspects to understand fully how to sell your house. Consult with tax professionals for the tax implications, such as capital gains or local taxes, when selling an Airbnb house.
You should provide your potential buyers with the income report generated from your Airbnb rental. It is to keep records of your property income and expenses for financial documentation regarding the house.
You can also include the income history, operational costs, and the property’s cap rate. To attract buyers, you must showcase a portfolio showing the property’s potential income.
Finding Alternative Accommodations
Once the decision to sell the property is made, the host must find alternative accommodations for themselves or their guests. This may involve renting another property or finding temporary housing until a new home is purchased.
You will disrupt your guest arrangement if you don’t plan the transition. That is why you should inform them about your decision to sell the property and that you will no longer accept accommodation.
Apologize to your guest for the inconvenience and sudden decision and recommend an alternative accommodation.
Refund or Compensation
If you suddenly decide to sell your property immediately, you will refund the guest for the short notice and inconvenience.
You can cancel your guest’s stay, but note that you may be refunded based on the Airbnb cancellation policy. It is to maintain goodwill and prevent disturbing your guest’s travel plans.
When you are planning to sell your house, but a guest is currently staying, you can follow these steps for a proper refund:
Inform your Guest: Let your guest know that you need to cancel their booking because of a property sale. Approach them by asking for an apology for that inconvenience, and you will be refunding them.
Check Airbnb’s Cancellation Policy: Examine Airbnb’s cancellation policy to understand how it works. Identify the refund amount and whether it belongs to a flexible, moderate, and strict policy. You can choose to give a full or partial refund depending on the agreed refund amount between you and the guest.
Communicate with Airbnb Support: Don’t forget to ask for help from Airbnb customer support if you need help issuing a refund. They can guide you throughout the process to settle things correctly.
Maintain Open Communication: Maintain open and timely communication with the guest throughout the refund process. Respond immediately to any questions or concerns they may have and provide updates on the progress of their refund.
Conclusion
Selling your house may impact your future revenue, but following the important legal considerations is necessary, depending on your reason and purpose.
Ensure you know your local regulations when selling the property to a different person and transferring the ownership for rental.
Don’t neglect to inform your guests about the unavailability of your property and why you can’t accommodate them anymore. Update your Airbnb listing to avoid receiving bookings and give a refund for stays that you are canceling.
