Should I Consider Sell or Convert My Short-Term Rental Property?

The travel industry has changed significantly over the past decade. With the popularity of vacation rentals advertised by such sites as Airbnb, VRBO and Home Away, travelers have more options than ever for lodging during their vacation. Unfortunately, 2020 has seen a serious decline in travel due to the COVID-19 crisis and many owners of these short-term rental properties are wondering what to do.

If you have a short-term rental property in the Tampa marketplace, you might be wondering if this is the right time to sell or convert it into a long-term rental property. Here are a few considerations as you weigh your options:

What are your long-term goals?

While travel is down significantly right now, this slump won’t last forever. If this property is part of your overall investment portfolio which makes sense for the long run, consider converting your rental to a lease cycle. The difference between managing guests vs. managing tenants might seem daunting, but hiring a property management team can make that transition easier for you. HOMM Real Estate Services specializes in full-service property management throughout the Tampa-bay area. From maintaining your property to finding you tenants, our team can help a struggling short-term rental back into a consistent source of passive income.

How do you feel about upkeep?

Even as vacationing becomes popular again, are you prepared to maintain a short-term rental during the new normal? Vacationers are looking for specific sanitization protocols to ensure their safety during their trip while staying at your property. If upkeep feels like too much, converting or selling might be right for you.

What does the market look like?

Housing inventory is down about 20% year-over-year according to the National Association of Realtors. Low inventory means that if you decide to sell, your home will have less competition. Low inventory also prevents home prices from falling in most areas. Although this sounds like a straight-forward sell, it’s important to hire a real estate agent to ensure you get the best price for your property. They can work with you to position your house as one of the best in its market.

What does financing look like?

Interest rates have dropped significantly since the beginning of the year. It might be time to refinance the property, especially if you want to make some updates to suit the property long term. In addition, if you do decide selling is right for you, buyers are in the best position to buy.

This is a confusing time for everyone. The robust business of short-term rentals has certainly been affected over the past few months. If you own a short-term rental, consider all your options as you decide whether it’s the right time to sell or convert your property. Either way, contact HOMM Real Estate Services for your selling and property management needs.

HOMM Real Estate Services, located in the Brandon, Florida, Tampa is focused to Hillsborough, Pasco and Polk Counties. As a full-service general real estate company, we specialize in general real estate, home buyers, home sellers, new home construction, rentals, tenants and landlords and property management.