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Crystal Flower
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Best place to sell Newly Started Booked out STR

Crystal Flower
Posted

Where is the best place to sell a newly started well running STR to actually get the value of the property plus the furnished STR business?

It's booked almost solid through August.

Most realtors want us to cancel all the bookings because they just want to sell the property. They won't even list it if it's booked out which damages our STR reputation and causes us to be cash poor while we are trying to sell it.

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John Underwood
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
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John Underwood
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
Replied
Quote from @Dan H.:

If it is in a residential zoned area, it will be valued by lenders based on comps and the fact that it is a high occupancy STR will not change that.

In addition, transferring reviews and bookings is challenging and not something normally done,  The OTA’s policy is as though management alone dictates the review (my belief is that it is both the property and the management).   From their perspective that the management is responsible for the reviews, it makes sense that the OTAs make it challenging to transfer reviews.

To transfer the reviews, you must sell the management business with the property.   This may increase the value to some buyers, but as indicated it will be virtually impossible to find a lender that supports this value.

Good luck


 As Dan says, this is worth what comparable sales say its worth for a single family house.

  • John Underwood
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