Roman and Ava live in Atlanta and were so excited about buying their first vacation rental at the beach. They found the perfect beach house, put it under contract, secured financing and were ready to close in just a few days.
In addition to making ALL of the necessary arrangements for the closing, Roman and Ava made plans to get the kids out of school early, take some time off of work and even arrange for someone to watch their two dogs so everyone could take a quick flight down to close.
The plan was to sign closing papers around 4:00 with the closing agent then drive to the house to celebrate and enjoy the beach. They wanted to stay for just a couple of nights then fly home and start pulling in the big weekly rental monies. The flight was a little late, but they made it to closing just in time.
The family stopped by Publix to load up on groceries and then excitedly drove to the house! When they pulled up, two SUV's were in the driveway, beach chairs on the porch and towels hanging everywhere. They were hesitant to walk inside but did and saw more evidence of a good time at the beach almost everywhere they looked.
What happened? Or maybe more precisely...
Something got lost in the shuffle, and the rental manager had guests in the house enjoying their vacation. Even worse, they weren't supposed to leave for 5 more days!
At the very least, you have a mess to deal with instead of a beach to enjoy.
Well, fortunately, THIS story didn't happen. Roman and Ava are my 6 and 12-year-old children. However, I have heard and seen versions of this very thing countless times over in my career.
There are a few things that buyers and sellers MUST be sure to address in the purchase contract when a property is a vacation rental or else risk living out this exact scenario.
I have been helping people buy and sell vacation rentals since 2003...even bought and sold a few myself. I have been on BOTH sides of pre-construction deals, flips, owner financing, REO's and short sales.
I can't emphasize enough just how important it is to address ALL of these issues AT THE TIME OF CONTRACT SIGNING. Don't sign a deal thinking that you can work on this after agreeing to the basics like price, closing date, deposit, etc..
These concepts constitute thousands if not tens of thousands of dollars in some cases. A real estate professional, EXPERIENCED IN VACATION RENTALS, can help ensure that the paperwork is right and will help navigate a smooth closing.