Sell a Vacation Home for Cash
Maintaining a vacation home may cost more than its initial purchase price. When the home becomes a burden instead of a pleasure for them, many owners decide it’s time to sell a vacation home for cash.
There are two main reasons vacation home owners decide to sell: 1) Not enough time to enjoy using it, and 2) Not enough income to pay maintenance fees as they increase.
In the meantime, before the property is sold, renting it out for a few days at a time may seem like a good idea.
But, when the unit is rented out to short-term tenants, irritating property damage may occur from time to time. This list offers some eye-opening considerations for vacation home owners considering becoming landlords:
Things to Consider Before Leasing Vacation Homes
1) Neighboring property owners generally don’t want short-term renters in their building or their neighborhood, so they’ll turn in your infractions without hesitation.
2) Some cities limit short-term real estate rentals to a minimum of 30, 60 or 90 days. Violations of a municipal ordinance on short-term rentals can bring fines up to $5,000 for a first offense, in New York City for example.
3) Some cities use zoning laws to control short-term rentals, such as prohibiting a rental within 200 feet of another, similar short-term rental property.
4) Cities and neighborhoods often have legal restrictions on short-term rentals, but they are not uniform, which can become very confusing.
5) Short-term rental websites will solicit your listing, but they won’t help you determine the legal restrictions where your property is located or warn you about possible fines for breaking local laws.
6) Some cities require a special permit and charge a “transient occupancy tax” on rentals (similar to the municipal tax on hotel rooms), as well as a permit fee. Renting your place without a permit and tax payment could subject you to big fines.
7) Condos often limit short-term rentals as deed restrictions or restrictive covenants.
It’s not unusual for people to rent a vacation home for a big party. The location is often scenic, with amenities nearby. And of course, renting a place for partying means your personal home won’t be trashed by party goers, whether you own or lease it.
Not every tenant is there to party, of course. But you’re still responsible for knowing and following the rules and laws in your local area, not to mention dealing with the IRS and the tax status of your rental income and rental property.
Don’t Rent Your Second Home, Sell It Instead
If you’ve decided there are too many problems associated with short or long-term leases on your property, consider calling a professional real estate buyer to sell it instead. Call We Pay Fast at (405) 521-1807 or email [email protected] for a quick, easy way to sell your vacation home for cash.