What happens to bookings when sold?

Question

Im booked via airbnb well into oct, nov.... what happens if i want to sell my cabin in coming months? Are these able to transfer to new owner?

Collin Hays · Answer

I have one of my STRs near Gatlinburg current under contract.  I have told the purchaser that I will manage the rental free-of-charge until the end of the year so that we don't have to cancel a bunch of peoples' vacations, but I don't think it ordinarily works that way.

Nick Rutkowski · Answer

@Diana T.

You can cancel with your guests prior to their arrival. Tell them you sold the place, it’s a legitimate reason to quit. People will understand and book elsewhere.

Your other option is to sell it to someone who runs Airbnb and they can assume the bookings.

Where’s your cabin? How’s your reservation rate looking?

Dustin Allen · Answer

@Diana T.

It also depends on your contract and permit requirements. This would be a point of negotiation with a potential buyer to see if they even want the bookings. Some definitely will. In my area, permits are non transferable so all bookings that are less than 30 days have to be cancelled because the new owner will not have a permit for those stays.

Patricia Steiner · Answer

We've purchased many thriving vacation rental properties and we have had to ask the future guests to cancel the old reservation - without a cancellation charge (make sure the provider is made aware of the sale) and re-book their reservation. We let them know that we're holding their dates for them, look forward to having them as guests, and generally offer a small discount for the inconvenience.  Not one reservation was lost.  The guests were grateful that their reservation was being honored and their vacation plans intact.

Justin Beasley · Answer

This is a great question @Diana T.. To answer the question...yes it is possible, but depending on a number of factors it can end up being rather difficult.

Is your cabin in good condition and in need of little maintenance? Does the buyer desire to use the same management company or platform as you? Does the buyer believe your bookings are bringing in a fair number? If listed with a management company what is your management split? There are a lot of questions that have to be answered for the bookings to transfer.

The main question is what is it worth to you in order to honor those bookings? Are you willing to take a lesser offer in order make sure they are honored? Advertising that you must honor all bookings could result in some investors deciding to pass on your cabin or offer less.

I have heard of several cabin owners here in the Smokies that had to cancel $150,000+ in bookings. I would hate to have to make those calls, but that is part of it sometimes.

Diana T. · Answer

@Nick Rutkowski

Pigeon forge. Booked solid next few months, and about 60% later months of year so far.

Thanks for the input!

Joshua Strickland · Answer

Unless something has changed when I purchased last year the old owner had to cancel and send the guests a new link to rebook the dates under my profile. It was a bit of a cluster, but can be done. It was also my first go at it so I probably made it more complicated then it had to be.

What happens to bookings when sold?

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