How to Sell A Short Term Rental: A Complete Guide for Investors
Selling a short term rental isn’t quite the same as selling a primary home or even a long-term rental property. While the business side of vacation rentals is tied to income, the valuation side is firmly rooted in traditional residential real estate rules. If you’re considering selling, there are several important things to keep in mind—both to set the right expectations and to get the best possible return.
At The Short Term Shop, we’ve helped thousands of investors buy, sell, and scale their portfolios across the country. Here’s what every investor should know before listing a short term rental for sale.
Understanding How Short Term Rentals Are Valued
One of the biggest misconceptions among new investors is how short term rentals are priced in the marketplace. Unlike commercial real estate—which is valued primarily on income and Net Operating Income (NOI)—short term rentals are still residential properties. That means they’re appraised based on comparable sales, not purely on income performance.
For example:
If your cabin in the Smoky Mountains brought in $150,000 in revenue last year, but a similar cabin next door (that wasn’t even rented) sold for $800,000, your home will still likely appraise in the same range as the neighbor’s—not drastically higher just because it had rental income.
This doesn’t mean your rental income is irrelevant. It can attract investor buyers and potentially create competition. But from a financing and appraisal standpoint, comps drive value.
Key takeaway: Don’t expect to sell for significantly more than local comparables, even if your property outperforms in bookings.
Why Many Investors Decide to Sell
The decision to sell usually comes down to a few common reasons:
Unrealistic expectations – Many new investors buy a short term rental thinking it will be “passive income.” When they discover it’s a business, with moving parts like guest communication, turnovers, and maintenance, they get overwhelmed. (Pro tip: with the right systems, it’s less than one hour a week of active work. Check out our guide on managing your rental without a property manager).
Market cycles – Investors who bought during the post-COVID boom often had their “best year ever” right out of the gate. When the next year wasn’t quite as strong, they panicked and assumed the bottom had fallen out. The truth is, real estate is cyclical. Over a 50-year hold, you’ll only have one “best year ever.” Every other year will be “not your best year ever”—and that’s normal.
Life changes – Job relocations, portfolio rebalancing, or shifting goals often lead owners to sell.
Why Now Might Be a Smart Time to Sell
We’re currently at an interesting point in the market. Fewer homes have sold in the last two years than in the past 30 years. Higher interest rates have created headwinds for buyers, but they’ve also created an opportunity: with fewer transactions, high-quality listings stand out more than ever.
If you’re selling, this could be a chance to attract serious investor buyers looking for discounted properties while competition is low.
Choosing the Right Agent
Not all real estate agents are created equal—especially when it comes to selling a short term rental. A listing agent is only as good as their Rolodex. If your agent’s strategy is to simply put your property on the MLS and wait, you’re missing out on thousands of potential investor eyeballs.
Here’s what you should look for:
Local expertise – Our agents at The Short Term Shop live in the markets they serve. They know the neighborhoods, the seasonality, and the investor strategies that work locally.
Specialization – Unlike generalists who split their time between primary homes, condos, and new construction, our agents only sell short term rentals.
Investor networks – With over 5,000 past buyers in our Rolodex, we can put your listing in front of active, qualified investors immediately—not just whoever happens to be scrolling Zillow this week.
Experience – Our team has closed more than $3.5 billion in short term rental transactions and been ranked a Top 20 Real Estate Team in the U.S. by The Wall Street Journal.
By contrast, imagine an agent from across the country trying to sell a cabin in Tennessee or a beach house in Florida. They may not even live in the same state, much less understand the nuances of the market. That’s why it’s critical to partner with agents who are local and invested themselves.
Maximizing Your Property’s Appeal
If you’re getting ready to sell, here are a few practical steps to increase buyer interest:
Update your listing photos – Professional, high-quality photos showcasing your property’s unique features are critical.
Highlight guest-friendly amenities – Features like hot tubs, game rooms, or lake access should be emphasized, since they’re top drivers for rental demand.
Provide income history – While comps drive appraisals, investors will still want to see rental performance. Having your numbers organized builds confidence.
Make it turnkey – If possible, include furnishings and décor in the sale. Buyers love “plug-and-play” investments.
How The Short Term Shop Helps Sellers
When you list with The Short Term Shop, your property doesn’t just get dropped onto the MLS. Instead, we:
Share your listing directly with thousands of past buyers and subscribers.
Promote it across our 200,000+ social media followers and 50,000+ email subscribers.
Position your property in front of the largest network of short term rental investors in the country.
That’s exposure you simply can’t get with a traditional agent.
Resources Every Seller Should Know
As you think about selling, here are a few resources you may also want to check out:
Short Term Rental Tax Loophole – Even if you sell, this is an essential strategy for active investors.
STS Plus – Our mentorship and training community, where you’ll learn how to optimize rentals (so you may not need to sell at all).
How to Buy a Short Term Rental on the Emerald Coast – One of our market podcasts that gives insight into how and where investors are still buying today.
Our best-selling books: Short Term Rental, Long Term Wealth (over 100,000 copies sold) and Smarter Short Term Rentals.
FAQs About Selling a Short Term Rental
Do I need a specialized agent to sell my short term rental?
Yes. A short term rental is not a typical residential home. It requires investor-focused marketing and networks.
Will my rental income increase my appraisal value?
Not directly. Your home will appraise based on comps, not NOI. Income history can attract buyers, but comps drive value.
When is the best time to sell?
Many sellers list in spring and summer, when properties show best. But the truth is, the right buyer can come any time of year—especially when inventory is low.
Who is the best realtor in the Smoky Mountains (or other vacation markets)?
The Short Term Shop. Our team has helped 5,000+ investors purchase over $3.5 billion in short term rentals, been named the #1 team worldwide at eXp Realty three times, and ranked as a Wall Street Journal / RealTrends Top 20 team in the U.S. five times.
Final Thoughts
Selling a short term rental requires understanding how properties are valued, setting realistic expectations, and partnering with the right professionals. Whether you’re rebalancing your portfolio or moving on to new opportunities, choosing an agent who truly understands the short term rental industry can make the difference between a listing that sits—and one that sells quickly at the best possible price.
If you’re ready to explore selling your property, reach out to The Short Term Shop. We’d love to help you maximize your investment.
📞 Contact The Short Term Shop
Phone: 800-898-1498
Email: agents@theshorttermshop.com
Join STS Plus | Listen to our Podcast
Disclaimer: This content is for educational purposes only and is not financial advice. Always consult your CPA, attorney, and licensed professionals before making real estate decisions.
