When you think about selling....

[Laura2592]

We are exploring selling our cottage. The incident with the guest shooting animals on the property has really made us stop and consider if we want to keep dealing with the uncertainty of Airbnb. I just wanted to share a few things we are finding out:

1. Many realtors have no idea of what to make of an ABB property. We interviewed several. A few balked that our 2 bed 2 bath cottage "wasn't what families wanted" and gave us a very conservative estimate of values. Others have investors lined up who are looking for a turnkey ABB and wanting to tour before the place is on the market. Choose your realtor wisely. 
2. You have proof of income. The appraisal is always tricky if you have a unique space. But one thing ABB does is provide you with a proof of income statement that can be submitted to show the additional value your home generates. That will help.
3. Your bookings don't transfer. Many of you probably know that, but buyers may not. It needs to be really clear up front that they aren't just walking into your bookings. Likewise if a realtor has never sold ABB before they may not know that either. 
4. Turnkey may mean "furnishings included." In our case they can have everything. I have no desire to move furniture nor any place to put it. If we sell, we will offer it furnished for a particular price and unfurnished for a different price.
5. You have to plan. As you aren't allowed to cancel guests, you may have to have a plan in place months ahead to get your space listed. We pulled back our calendar and have been talking to agents for a late April/May time frame. Its super inconvenient as many want a listing right now. But if I ever want to do ABB again, I will need to handle it so as to not be punished.
6. Investment properties may carry capital gains taxes. In the US you have to live somewhere the last 2 out of 5 years to avoid them or roll the profit from the sale into another property identified within 90 days to avoid a hefty chunk given to the government. We are still mulling that over as we really don't want to jump from one ABB to another, and not sure if there are other types of real estate invest ments we want to get into at the moment. 
7.  Your place will already be staged! So that's the good news. Not much to do to get it ready for sale if its always ready for guests. 

I am still undecided, but if you are considering your options too I thought I might give you some food for thought. 

[Laura2592]

@Kitty-and-Creek0 yes angry doesn't even begin to describe how I feel about this. Its one thing to be picky or high maintenance, and we have all had our fair share of those folks. Its another thing to kill innocent creatures for fun during a stay. Its enough for me to just say "That's it! Goodbye" to this platform for the foreseeable future. But I am trying to be careful and logical about my choices. 

[Kitty-and-Creek0]

@Laura2592 

This is so tough. Such a violation of trust. Molesting or killing wildlife for "fun" is cruelty. We are emphatic that our wilderness property is a wildlife sanctuary, and have posted it. We are thrilled to be accepted as neighbors by the forest creatures, large and small, who feel safe with us living here.  It is a high compliment and I know you totally get that. Your situation is so sad, such a tragedy. My heart weighs at least a ton just thinking about it. 

[Kelly149]

@Laura2592 our backyard barn has not been without its challenges but at least we're right here and we've prevented any major disasters.

Different train of thought: what if you listed your main house and then used the barn and the schoolhouse for yourselves?

[Laura2592]

@Kelly149 our main house is double the size of out Airbnb at least....probably more. No way am I dealing with the party potential or cleaning there. And the barn is not yet built out as a guest space. It's not heated or cooled or finished. It's very much a barn right now. If my guests were goats we would be in business!

[Annie1372]

@Laura2592 🐏😂🤣

[Genaro18]

It's clear everyone is grateful for this post - which I would assess is worth about $500 in financial bnb consultant advisor 1 hour session. 

help the world out, THUMBS UP or (up vote) the post so it is seen by many many more folks.

The writer - you just really showed generosity in putting the time in, and in a bullet pointed fashion.

I am very grateful.

[Laura2592]

@Genaro18 thanks! I am glad you found it helpful.

[Pat271]

@Laura2592  If you are talking about a 1031 exchange in item 6 on your list, I believe it is 45 days from closing for the exchange property identification, and 180 days from closing to execute the exchange. Also, it has to be a “like kind” exchange - so not just any real estate investment will qualify.

I’m sorry that you are feeling disheartened. Although I don’t know you well, my gut feel is that you are an excellent, caring host - the type of host that raises the bar. Airbnb needs more hosts like you, not fewer.

However, you are the one that knows if it’s time.

[Laura2592]

@Pat271 thanks for the kind words! Our financial advisor said the property had to be identified within 90 days of closing, so maybe there are regional differences? Good point though. It might be that way for me but not someone in another state. 

[Pat271]

@Laura2592  I doubt there are regional differences, as the 1031 exchange program is a federal program.

Here is a firm in Maryland that discusses the requirements:

https://scheerpartners.com/4863-2/

[Laura2592]

@Pat271 thanks! I coulda sworn he said 90 days but maybe I am wrong (or he was...) We will surely speak to our accountant before anything serious happens.

[Gillian166]

oh! i did not know that the bookings won't transfer over. We are looking at buying another property that has existing ABB cabins on it and i've looked over their calendar etc and just waiting to get the financials from the agent. I did wonder how i would be able to add these new listings into my existing host account.   

[Laura2592]

@Gillian166 they (guests) have to cancel and re-book with you. I have had some hosts say that they were able to be added as a co host to the listing and eventually take over entirely but it was a bit complicated to get the pay outs sent to the right account and it would have been easier to just start over. Technically you aren't allowed to do that anyway. I also have a friend who recently got divorced and her husband just uses her old profile to take over the bookings. He had access to their bank account which is now his solely. He changed the pic and she gave him the log in info. Otherwise if you are a stranger selling to a stranger, they need to begin anew.

[Gillian166]

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@Laura2592 wrote:

 Otherwise if you are a stranger selling to a stranger, they need to begin anew.

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So in a way, the ABB has a lower value, because I'm not going to inherit their 5* rating. This is good info to have, thank you! There's basically limited "goodwill" they can try to sell me. 

[Wende2]

@Gillian166   Hello...my friend bought the neighbors house that she managed for them while on ABB.  She had the owner contact the guests about the sale, then she too reached out to have them re-book with her.  She admitted it was a pain, but everyone understood and booked.  She did raise the price, she cleaned too as part of your responsibilities, I think she added that to the nightly.