How do you sell a functioning Airbnb?

Question

We have a fully functional duplex home Airbnb Northeast of San Antonio, 10 minutes from downtown. The two units are fully remodeled and furnished, with super host status reviews. However we don't have bandwidth to adequately promote it and despite the not great occupancy we are still generating a positive cash flow. This property also has a very large backyard and since it's in etj it would be possible to build an additional multi house unit in the back, so the potential is really good. What strategy would you recommend sell this property at maximum value? Thank you for your expert advice.

James Carlson · Answer

Airbnb has been trying to push co-hosts for years. I don't see it working.

Managing STRs is a lot of faucets to turn on for a little bit of water. Tons of work. You're middle-management between two demanding stakeholders -- Airbnb guests and vacation rental owners. Even the professionals taking 30% don't always offer the hands-on service that guests demand now.

To think that some random person on Airbnb is going to take way less money for a really hard job and do it well consistently is a stretch. My two cents, at least.

James Carlson · Answer

Find an STR-friendly agent who knows how to maximize it's marketing as an active Airbnb, but don't get your hopes up.

I see short-term rental owners here in Colorado trying to get a premium above market value because it's a turnkey operation. It never works.

The home is worth what the comparable properties say it's worth. Maybe you get a few thousand extra to throw in the furniture for a future Airbnb. Put it on the MLS, advertise it on STR forums/FB pages, no magic bullet, though.

Collin Hays · Answer

Put it on MLS.

Michael Baum · Answer

Hey @Stef Pietri, your duplex is worth what other duplexes in the area are worth.

It being a working STR (AirBNB is a platform) doesn't matter.

I spent a bit of time chatting with 10 lenders and each and every one said they didn't ascribe more $$$ because it is a STR. It is worth what the comps say it is worth.

Erin Spradlin · Answer

You can try to get something more for it, but at the end of the day, using a traditional agent who puts it on the MLS is still going to give you the widest exposure to active buyers. The comps will dictate price.

Brian Canady · Answer

Airbnb now has Co-hosts that can help you manage it if you want to keep it. This is a great option and a huge need.

You can still sell the property with renters in there. Just be upfront and let them know what is going on. You can give them a discounted rate or buy them dinner to get them out of the house.

What we have done in the past for clients like in addition to what I mentioned above. Find out what days the group is out of the house or what hours they will be out of the house. Plan showings or an open house around these times to get as many people through the house as possible. Example- Typically, we will list the property on Wed and say NO SHOWINGS UNTIL SAT 10-4pm. This will create a ton of showing request for that day. We will host an open house during that time and have it available for showings so I can be there and make sure my renters stuff is taken care of. Usually the property will sell that day. If not, repeat the next weekend or block a day out in the calendar to complete the open house/ showings.

Good luck. If you need an agent, I can help direct you. If you want to chat, let me know. I am an open book

James Carlson · Answer

No shade intended.

I assume you are referencing what Airbnb billed as a new function in late 2024, it's Co-Host Network. I agree, many of those co-hosts -- sounds like maybe you included -- have done well for their clients. But I maintain that any single co-host who wants to make real, livable money still has to scale, and there are a lot of headaches with trying to provide intimate, hands-on management at scale.

I have numerous clients -- successful STR hosts here in Colorado, some of them with multiple profitable short-term rentals in Denver and elsewhere -- that have thought they'd transition to managing others Airbnb properties. Only one is still doing it after a few years.

Drew Sygit · Answer

@Stef Pietri what percentage of buyers do you think are looking to buy an STR business?

Guessing pretty small percentage.

You could contact a business broker to see what they think, but you may be sitting on your little STR business for quite some time.

Anyone buying your STR business would have to get a business loan. Most business lenders won't recognize an STR business.

So, buyers will try to get a residential mortgage -> which will require a residential appraisal -> which won't recognize the STR business.

Collin Hays · Answer

This

John Underwood · Answer

I would put it on Zillow first and see if you can sell without a realtor. I successfully do this all the time. The attorney will do all the legal work to transfer ownership anyway.

So many people use Zillow now!

How do you sell a functioning Airbnb?

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