Are you considering selling your short term rental property? Before putting it on the market, it's important to gather these essential documents. This process will not only streamline the selling process, but it will also provide prospective buyers with a comprehensive understanding of the property's history and potential.
1. Booking History Spreadsheet
One of the first documents you should compile is a detailed booking history spreadsheet. This report should encompass all bookings received since you transformed the property into an Airbnb. Organize the data by year and include essential information such as booking source, booked dates, stay length, room revenue, booking fees, and cleaning fees.Additionally, make sure to include key performance indicators (KPIs) like the average daily rate and occupancy rate on each annual report. This comprehensive overview will give potential buyers insights into the property's financial performance and booking trends over the years.
2. Previous Guest Reviews
Positive guest reviews can significantly impact a buyer's decision. Compile five to ten previous guest reviews that highlight the strengths and benefits of your property. These reviews serve as powerful marketing tools, showcasing the positive experiences of past guests. Consider emphasizing reviews that detail specific features of the property rather than outstanding hospitality.
3. Furnishings List
Create a thorough list of all furnishings and household items that will be included in the sale of the property. If you utilized a furnishings list during the setup of your short term rental investment, use it as a starting point. Ensure that the list is comprehensive, detailing quantities of items such as linens, kitchenware, furniture, and other amenities. A clear furnishings list helps potential buyers understand what they will acquire with the purchase, and having this list makes it easier to contractually account for such items when an offer for the STR property is made.
4. Profit and Loss Statements (P&Ls)
If you have a formal profit and loss statement you should make sure this is current and available to show to prospective buyers. This document gives buyers a detailed look at the property's financial health, including income, expenses, and net profit. If you don't have a formal P&L, document all recurring expenses and provide revenue reports. Include any documentation for additional expenditures related to improvements or repairs, as this information is crucial for potential buyers assessing the property's overall condition and investment potential.
By compiling these four key documents, you'll not only streamline the sales process but also present your short term rental investment in the best possible light. This transparency and thorough documentation can instill confidence in potential buyers and contribute to a smoother transaction process. Need help selling your Austin area airbnb? Schedule a call with us today!
