The short-term home rental market has exploded in recent years. Companies like Airbnb and VRBO make it easy for homeowners to rent out their properties for short stays, and it has become an important source of income for many Americans. But many owners of short-term rental properties are wondering if now may be the time to sell those homes. Especially considering that the travel industry continues to lag because of the pandemic and the real estate market is flourishing because of record-low interest rates. Here are some signs that now may be a good time to put your home on the market.
There’s a lack of inventory
Demand for homes is huge right now, and there is a lack of inventory to meet that demand. According to a report released by the National Association of Realtors (NAR), inventory is down almost 20 percent from the same time last year. Numbers indicate that there are fewer homes on the market than there are interested buyers. If you’re considering selling, then now could be an excellent time – especially if your home is in a desirable, less-populated area.
Home values remain steady
While there was concern early in the pandemic that the housing market would collapse, that has not happened. In fact, homes have continued to hold their value. In addition, experts believe that home prices will remain steady throughout the remainder of the year. With demand high and home values holding strong, selling now could make smart financial sense.
You’re losing income
There’s no denying that owners of short-term rentals have taken a hit in their pocketbooks because of the coronavirus. With travel severely limited and most Americans opting to stay home, owners of vacation rentals have seen their bookings plummet. Even though owners are not making money off their properties, they still have to pay expenses such as mortgages, taxes, and repairs. If you’re losing income, then it might be time to let the property go.
You’ve got expensive repairs on the horizon
If the pandemic is coinciding with big-ticket repairs on your short-term rental, then it could be more favorable to sell. Whether you’re in need of a new roof or it’s time to replace expensive aging appliances like a furnace or AC unit, these expenses could drain your reserves.
You’ve outgrown your rental
Your decision to sell your short-term rental could have more to do with your current lifestyle than any financial shortcomings you may be experiencing. Many homeowners use their short-term rental properties as vacation homes for themselves and rent them out when they are not in residence. But if you’ve noticed that you’re using your property less and less, then selling when demand is high could be a positive move.
The uncertainty is stressing you out
Nobody can tell us when the pandemic will be over. It’s difficult to estimate when life as we know it will return to normal. It could be weeks, months, or even years. If the stress of not knowing what the future holds is too much for you to bear, then it could boost your well-being to let get of your short-term rental. You always have the option of investing in a different property once the pandemic is safely behind us.