Buying an existing STR - due diligence checklist

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Buying an existing STR - due diligence checklist

Susann Quijada
Member since 2025 · 2 posts · 2 votes

First time STR investor - found a promising looking existing STR property. What do I need to watch out for as I go through the purchase and transition? Does anyone have a good resource for this maybe?

Specifically - how do I best verify past bookings and financials beyond tax returns? 

I am looking to sell-manage - fair to assume I lose all reviews and likely existing bookings of the property? 

Anything g else to watch out for? 

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
1y

Tax returns are the best way to verify earnings. Make certain that the annual revenue does not include housekeeping fees and sales/occupancy taxes. You don't keep those. Those revenues should have no basis in your analysis.  

VRBO will work with you to transfer reviews, but you will need the cooperation of the seller for this to happen.

Make certain you buy a short-term rental insurance policy with maximum liability limits. A standard homeowner's policy will not cover you if you have a claim.

The "biggie" things you should verify and take into account are:  The fitness of the septic, plumbing, and HVAC systems, and a termite inspection.  

Good luck!

[email protected]806-672-7102
SMOKY MOUNTAIN FALLS INC.51 Review
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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    Tax returns are the best way to verify earnings. Make certain that the annual revenue does not include housekeeping fees and sales/occupancy taxes. You don't keep those. Those revenues should have no basis in your analysis.  

    VRBO will work with you to transfer reviews, but you will need the cooperation of the seller for this to happen.

    Make certain you buy a short-term rental insurance policy with maximum liability limits. A standard homeowner's policy will not cover you if you have a claim.

    The "biggie" things you should verify and take into account are:  The fitness of the septic, plumbing, and HVAC systems, and a termite inspection.  

    Good luck!

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    1y

    Adding to @Collin Hays great post - Airbnb you will have to start over under a new listing.  I recommend looking at the reviews of the current listing as well to see how people liked the house.  Ignore the comments about previous management but focus on comments about neighbors, location, amenities, etc. 

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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  • Collie Hill
    Real Estate Agent · Houston Texas · Member since 2025 · 16 posts · 16 votes
    1y

    Absolutely look at the older review and make sure to get an air dna report to help determine  the demand for that area. It will give you yearly gross estimates and more in the report. 

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  • Anja Schaer
    Investor · Atlanta · Member since 2022 · 146 posts · 72 votes
    1y
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  • Anja Schaer
    Investor · Atlanta · Member since 2022 · 146 posts · 72 votes
    1y

    Good questions, Susann! Yes, verify financials with tax returns and Airbnb/VRBO reports. You'll likely lose Airbnb reviews/bookings but might transfer VRBO reviews with the seller's help. Check permits, STR regulations, and do a full inspection (HVAC, safety, etc.). Also, grab an AirDNA report to confirm demand.

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