Should I sell my airbnb or short term vacation rental?

Do you own an Airbnb or other short term vacation rental that is underperforming? San Diego Realtor Carter Andrues gives you four reasons why now is a great time to sell your short term vacation rental.


Do you have an Airbnb, Vrbo, or other short-term vacation rental that's underperforming? Carter with Whissel Realty Group will show you four reasons why now is the perfect time to sell your short-term vacation rental.


  1. Current market conditions. It's currently a seller’s market. Homes are selling at record pace and for record prices. But how long until we rotate back into a neutral or even a buyers market? Selling now can allow you to net the largest gain on your investment.


  2. Vacancy rate. How many days out of the year is your rental booked? Is that number what you had planned? My guess is probably not. COVID threw a wrench into things this year. And while some months may have seen record highs, overall, most owners are seeing record lows for the year. And let's not forget, by the time Airbnb takes their cut and you pay taxes and the house cleaner, you may not even be profitable anymore, so selling now can help you alleviate that financial stress.


  3. The 1031 exchange. Smart investors use what's called a 1031 exchange to defer the payment of capital gains tax on their investment. Unlike stocks, where you have to pay taxes on your trading gains, a 1031 exchange allows you to continually roll out payment of those taxes into a new investment. But now that current election results are in, the 1031 exchange may be on the chopping block and you might not be able to employ this game-changing strategy anymore.


  4. Hidden repairs. Most owners don't think about repair costs, but these can add up really fast. What is the current state of your roof? How old is your water heater? Does the pool need to be resurfaced? All these can add up, and suddenly you're no longer profitable.


If the numbers make sense for you to keep it as a vacation rental, please, by all means, I encourage you to do so. But let's compare what you stand to make on a yearly basis versus taking profits now. I'd be happy to stop by your San Diego vacation rental, even between occupants while it's being cleaned, and give you a strong valuation based on today's current market prices.


Call or text Carter at Whissel Realty Group, 452-8404.