By CREB®
With many consumers finding success using Airbnb and VRBO platforms, it’s possible to see this as more than a trend. It’s become a preference for ownership. You may have buyers seeking properties with these capabilities and sellers wanting to highlight these features.
With any new up-and-coming trends, there are points to consider. So, let’s dive into listing and purchasing properties with Airbnb and VRBO capabilities.
Airbnb terms and conditions
A seller’s Airbnb account is not transferrable with the purchase of the property
This means that after a deal closes, the new property owners must create their own Airbnb profile or add the new property to their existing profile. The new property owners cannot assume any existing reviews or ratings from the previous owners.
Sellers need to cancel any reservations made after the possession date
Sellers cannot transfer existing bookings to a buyer. Once the buyers have taken possession, they can do re-bookings. However, if the sellers take the furniture or shut off the utilities, the buyer must be informed as this could be a problem if unprepared.
Some municipalities may require a permit
If a permit is required to operate an Airbnb, you will need to find out if that permit will transfer when the property sells or if a new one can be issued.
VRBO terms and conditions
Use of site content, name or images is prohibited on marketing material
The platform name ‘VRBO,’ or any copied content, cannot appear on any marketing material used to promote the purchase or sale of a property. This includes the MLS® System.
Cannot list the contact information of another person
The VRBO profile cannot be used to advertise the property for sale nor direct potential buyers to contact a REALTOR® for more information.
Short-term rentals and condominiums
With the increasing popularity of condominiums used as Airbnbs and VRBOs, some condo boards have felt the opposite appeal towards the rental trend.
In an Edmonton court ruling, Justice Paul Belzil issued a permanent injunction that includes short-term rentals such as Airbnb to be considered a “commercial transaction” and, therefore, in violation of this specific condo board’s bylaws. You can read more about that ruling here: Edmonton judge backs condo board in banning online rentals | CBC News
With the example of this court ruling, make sure to investigate a condominium’s bylaws concerning short-term rentals before highlighting this as a feature of the property on the MLS® System.
Short-term rentals and the MLS® System
Remember to keep your listing:
Property specific
Avoid the use of self or third-party promotion
Avoid using websites, phone numbers, or promoting any rental reviews in the public remarks
CREB® Rule Part III 2.02(d) states:
All information in the general (public) remarks section of an MLS® Listing on the Board's MLS® System must be property-specific. Without limiting the generality of the foregoing, self-promotion and/or any contact information of the Listing Brokerage, listing REALTOR® or Member, including but not limited to e-mail addresses, URLS (website addresses), virtual tour information and electronic links of any other kind, fax numbers or references to other "team members" or assistants is not permitted in the general (public) remarks section of an MLS® Listing on the Board's MLS® System.
Cohesively, avoid promoting the potential of income, as REIX does not cover this type of advertising and creates a high risk for misleading information (CREB® Rule Part I - 4.03 and CREB® Rule Part II – 6.05).
Additionally, remind your Sellers that CREB® Rule Part III - 2.03(b) (24-hours to show rule) still applies to short-term rentals and must be available to show. Consider the withdrawal strategy if this is an issue for your seller.
Quick tip
Remind buyers and sellers to check in with an accounting firm concerning applicable tax. Depending on the business nature of their short-term rental or a buyer’s intention when purchasing, seeking professional guidance in this area will be helpful.
