7 critical tips for closing down your Airbnb or Short Term Rental

So you are closing down or thinking to close down a house that you have been listing on Airbnb or VRBO or another Short Term Rental OTA. Business is business and you can’t be too emotional when it comes to shutting something that is no longer financially viable. Or perhaps there are new laws for your city that will prevent you from short term rentals. Or maybe you are just wanting a break from the daily grind of hospitality. That is totally fine too.

Or perhaps, like us, the 2020 coronavirus has completely decimated your market and you need to make some tough decisions which includes closing down.  

Whatever the reason, here are my Top 7 tips for closing down an STR. I have also created a FREE downloadable checklist to accompany this post. Don’t forget to grab it here.

There is some tough love in the following post and as professional hosts we need this from time to time. 

On to the tips for closing down:

1. Plan your calendar

It is always important to remember that behind each booking is a person who has planned their trip. This person deserves your respect and assistance to make alternative arrangements if you are unable to fulfill your side of the contract. And it is a contract – both in reality and morally.

I like to give myself about a month lead time to do this. Most of the action happens in the last few days, it is best to be well prepared. 

Look at your agreement with your landlord or the owners and figure out the best time for closing down. Top priority is your existing bookings. If you have bookings after this date, try to move guests first. This is easier if you have multiple listings or your own booking platform. (Side note: If you want to know more about the benefits of your own bookings platform, contact me. I am happy to walk you through the various options.)

If you don’t have anything suitable in your current portfolio then talk to a nearby host. Perhaps they can help accommodate the guest. The most important point here is to communicate with your guest honestly and openly. Give them them some options to choose from.

Obviously the last resort is to cancel. If this is your only option, make sure you give your guest as much lead time as possible. That is just good manners.

Mark off the date you plan to close the door and then work backwards to make sure you are prepped. I have created a cheat sheet with a checklist of things you should have ready.

2. Decide what to do with your stuff

Waste not want not, right? But be strategic. 

You have a ton of stuff. If you are completely letting go of the property or converting to a long term unfurnished rental, then you will need to dispose of everything. Think about what is of value to you: what you could use in your own home or for a different listing. Or if you plan to have short term listings in the future, then decide what furniture or fittings are best kept. 

Keep and store: 

• Solid furniture in good condition is always great to keep if you have the storage space. 
• Space heaters, fans and other large electrical items. These are expensive to replace.
• Interesting artwork or unique design pieces and mirrors – decorative and practical ones. If it sparks joy in you, then keep it – be honest here.
• Quality bedding such as blankets, duvets and scatter cushions. But only if they are in great condition and can be professionally cleaned prior to storage. 
• Cutlery, dishes and kitchen items. Again, only if they are in great condition, if they are a full matching sets and have good general functionality. 

Things that are worth selling/donating: 

• Things that you don’t love but you think that other people might find it useful. 
• Large furniture that you are unable or unwilling to store. Storage fees to add up over time so it is a good idea to have an end date in mind or you could find your stuff on “Storage wars”. 
• Fast furniture – the mass produced flat packed. This isn’t worth the storage fees as if you need to replace them it is cheap and easy to do. 
• Curtains – I have kept a ton of curtains over the years but it seems that none of them fit into new places. 
• Sheets, towels and pillows. They should be replaced regularly in any case. I like to donate these to my local charity shop if they are going to be useful to somebody in need. 

Free stuff 

You’ll also have a lot of stuff that you don’t want to sell or store. Offer it up for free. Giveaways as you close down your listing deserve a section of their own; see Treasure Hunters below (Tip 5).

I always give my staff first pick of anything I am giving away or selling off cheap. This is a good way of showing them appreciation for their hard work and loyalty.

3. Advertise: Take photos of sales items and create ads. 

The things to sell need to have great looking photos in order for you to maximize your return. If you are simply wanting things gone, then use the donate or Treasure Hunter option (tip 5). 

Take accurate measurements and put these in your ad. Take photos from multiple angles and use some good styling to show off the piece. 

There are plenty of articles online about tips for maximizing revenue using eBay or Craigslist. But the main point is to look at your ad to see if this is something that would tempt you. If you make it look its value, then it is easy to charge this. 

Here is a handy site to get you going: 7 Best Ways to Sell Your Old Stuff For Money

Give yourself plenty of time: Put the ad up at least a few weeks before you want it gone. You will get some “tyre kickers” and “time wasters” in between genuine buyers which can be stressful when you already closing down. If you just want to have this gone, put super cheap prices on them and they will sell faster. If you are still left with items and your move out day is looming, just cut your losses and donate or give them away.  

4. Box up and storage

Packing boxes: This is beyond me, I won’t lie. So, I pay my cleaning staff a flat rate to come in a box up the items that I am wanting to keep and store. This is a much more efficient use of my time and money as the house is pulled down in far less time than I can do.

If you are like me, you will look at items and second guess yourself: keep or dispose? Or day dream how they will look in other properties. Or wistfully imagine setting up new houses (which is my most fun thing ever). I am always looking at items and putting them into different properties – real or imagined. This is my creative side coming out. But if I’m honest, it is procrastination just dressed up as creativity…. 

When you pay the cleaners a flat rate, you will get the job done quickly and efficiently.  You can either take the supervisor role or just not be there – especially if the sight of your hard work being packed into boxes a little triggering.

Moving it all: I hire my favorite “man with a van” when it comes to closing down. Again, it is the most efficient use of time and resources. Also, this is all supporting local small businesses. I am passionate about in all areas of my life. 

5. Treasure Hunters

“Free to a good home”

Often I have a ton of things that are of no resale value for me or too hard to give to the charity store. In Japan where I am based, there are few charity stores and we have to pay for large trash removals. By having a free open house on a single day, saves me time, stress and money. 

So I alert my local “Treasure Hunters”. These are people who trawl on-line classified advertisements, yard sales and even large trash pick up days. I am sure there will be some people in your local area as it seems to be a fairly global idea. 

Everybody needs to make a living and if somebody can make some money from something that is too fiddly for me to deal with, then I send them love and wish them success. They are helping me as I don’t need to pay money to throw things away and also helping the environment by recycling. 

Be strict on your terms: I will put an ad on Facebook or Craigslist for a “free open house”. Set up a strict time and a date to open the doors as anything free tends to attract a lot of attention. Plus I make it clear that I reserve the right not to let somebody in if I don’t feel they are being respectful of me or the other people. 

Manage expectations: I make it very clear what I have to give away and I make sure that I have some sort of large ticket item – for example a TV or kitchen appliances. Make it worth their while to come for a particular item and then make sure they also leave with other items as well.  

Some tough love here: don’t just put out junk and expect that people will be grateful to take away your trash. Take photos and show off the items to make it enticing. The more people you have the more likely you will be able to clear out everything in a short amount of time. 

Timing strategy: I put the ad up a few days before but without the address. I ask people to send me a private message and I will give them the address the morning of or the night before. In addition, I make it clear that nobody will be in the house before this time and it is all locked up so it is no point trying to get in first to get first pick at the stuff. I set a time that suits me (say 9am) and don’t show up before. Also, using this method, you can only give the address to people you feel have the right attitude and will respect your boundaries. 

Make sure you have already moved out your things that you are keeping for yourself or you have sold or donated first or people will be disappointed if they see things that are not available. 

Boundaries: Don’t be afraid to be a little strict (yet kind) here as Treasure Hunters can be a little eager to get their hands on the best stuff. I usually make it clear that I am not holding or reserving anything for anybody. First come, first serve – you are giving everything away after all – smart and kind boundaries are the key. But set rules that make sense to you.

On the day: Show up at the designated time and open the doors. Have things easily arranged for people to see. Be available to answer questions or to encourage people to take more things. Some folks are shy and others will be pushy so be around to manage it all with a smile.

Each time I have done this, I have had a line of people waiting and they are all eager to get in and start sifting through the free things. People show up with empty suitcases and trolleys and take everything away but it is a good idea to have some empty shopping bags and left over packing materials on hand too. 

Stand back and watch your things head out the door.  

6. Clean up

Again, I call in my trusty cleaning crew and clean the house from top to bottom. When the house is empty, they can whizz through this in no time. There is a certain satisfaction when it is all done.

(Note to self: make sure you have left behind some products and tools to let the cleaners do their job. A couple of times, I have done such a good job of emptying a house, I have to race out and get the cleaners some things to clean with. ooops)

Pay attention to:

• Drains cleaned out and flush drain cleaner down the pipes
• Curtain rails wiped down
• Holes from picture hooks filed in. 
• It is always a shock to see the gunk that seems to accumulate behind furniture, refrigerators and washing machines no matter how often the house has been cleaned between bookings. 
• Mop the floors and leave them polished and waxed if needed. 
• Sweep the outside areas
• Wash down patios
• Trim back plants and take out weeds from garden beds. If the house is going to be empty for a while, getting this work done will help keep the house looking great for longer. 

In Japan, we don’t get all of our deposit back on rental properties if we do not leave everything clean. 

Or if you are converting to a long term rental, you need to have the house clean and ready for your tenants to move right in. If you start off a long term rental dirty, then this is disrespectful to your tenant and gives the tenant permission to in turn be disrespectful of you. I am a big believer in setting the right example and people will respond to you in kind…. well most of the time anyway. 

7. Shut off utilities

Last but certainly not least, make sure all your utilities are cancelled or transferred. You don’t want to be paying the electricity bill of the next occupant of the house. Contact your insurance company to let them know you are no longer occupying the space. You may even get a refund for the unused months. 

I have made a handy printable checklist so you can make sure you haven’t forgotten anything for closing down.

The final walkthrough:

When it is all done and dusted I like to take a solo walk through the house before giving back the keys. 

There is something satisfying for me about walking through a house that I have loved and I know that guests have loved when it is all empty and clean. It is quiet and all of the collective memories come flooding in at once and I can congratulate myself on a job well done and then I can let it all go peacefully. 

Now onto the next adventure – be it another short term rental or something else. 

Don’t forget to grab my FREE downloadable checklist here or sign up below.