Selling Your VRBO? WARNING! The Contract Clause That Could Cost You Thousands.
If you're selling a home with active VRBO reservations on the books, there's a fee policy you need to know about before you close, because it could cost you a lot of money.
VRBO now charges fees for owner-initiated cancellations, and they are not small. Cancel more than 30 days before check-in and you owe 10% of the reservation total. Cancel two to 30 days out and that jumps to 25%. Cancel within 48 hours of check-in and you're looking at 50%. And if a guest shows up and can't get in, VRBO charges you the full amount.
In our northern New Mexico vacation rental market, the average reservation runs around $1,700. If you've got ten reservations pending at closing, you could be writing VRBO a check for thousands of dollars right out of your proceeds.
Here's the Easy Fix
These fees only apply to owner-initiated cancellations. That's the key.
Call your guests, explain that you're selling the property, and ask them to cancel on their own. No penalty to you, no penalty to them. Problem solved.
This is the kind of detail that slips through the cracks if you're not thinking about your vacation rental situation early in the selling process. Get ahead of it and it costs you nothing.
Have questions or want to learn more? Give us a call at 575-613-4243, we're happy to help. Rob Swan | Qualifying Broker | Swan Realty Inc.
You Might Also Find These Helpful