Purchasing an existing Airbnb with future bookings

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Purchasing an existing Airbnb with future bookings

Thu Pham
Member since 2023 · 13 posts · 6 votes

Hi all! 

I am going into escrow for my first STR purchase (yay!) that is an existing Airbnb with future bookings into the year already. Ideally, I would prefer to capture their existing bookings after closing, by directing existing bookings to my new listing, but there are some dependencies/uncertainties I'm working through and would appreciate any advice or shared experiences here.

I am trying to decide 1/ if I want to purchase their existing furniture so I can start operating as soon as I get the permit from the city, and 2/ what to do with their future bookings. 

The main dependency here is that the STR permit with city takes up to 3 months, and if it does take that long, then I would prefer to decorate and furnish the bnb how I would like to. If it is faster than that, then I could potentially miss out on available days trying to get my place up and running.

The property is in the Joshua Tree market so the next couple of months is the tail end of peak season and will start to slow going into April/May, so I'd like to be ready to operate as soon as possible to capture max revenue before summer. 

Has anyone purchase an existing STR before, and how did you handle furnishing/bookings and how did it turn out? Looking forward to hearing your thoughts here and thank you in advance!

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y

If you want the furniture, just negotiate that and put it in the contract.

Could you lease it from them for those 3 months and operate under their permit till yours is available?

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  • Jacob St. MartinPro Member
    Investor · Charlottesville Virginia · Member since 2021 · 348 posts · 346 votes
    1y

    One thing to take note of is that a lot of places that are established STR markets have regulations stating that you have to honor future bookings. I would check your state and local regulations.

    When it comes to furniture/design it depends. Most people don't sell an STR that is making them a ton of money so odds are it could look better, although they could be selling it for other reasons. In a market like Joshua tree you will probably need to go above and beyond to stand out from other listings. I would only recommend purchasing items that fall into that vision.

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    If you want the furniture, just negotiate that and put it in the contract.

    Could you lease it from them for those 3 months and operate under their permit till yours is available?

    5Reply
  • Joel Oh
    Member since 2023 · 188 posts · 111 votes
    1y

    I think you are trying to catch too many rabbits at once. This is your first property and you want to set the deadliest deadline (Your first guest) without knowing anything. So many things can happen while you are purchasing the home while flipping into STR. If someone is selling existing STR, that means the listing has a critical issue the owner doesn't want to deal with. This can be very profitable purchase if you can fix whatever issue, but you are making it more difficult by setting a deadline. Peak season will come back. Don't get too hang of it. It is actually better to start with a slower season and welcome expensive guests when you know what you are doing.

    1Reply
  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    1y

    Congrats on going under contract! That's really exciting. 

    A couple thoughts on your question:

    I tell our STR investors in Colorado that their main goal should be to set up the right way right out of the gate. If you want to change the design, then do upon closing. If you have to cancel on future Airbnb guests, so be it. If you set it up well, don't worry, you'll get guests when you repost.

    If you really want to capture the existing bookings, then go for it and plan to re-furnish it at the start of slow season. But I find from personal experience and from my buyers' Airbnb experience that it's a bit of a hassle trying to get guests to rebook at the new listing.

    I don't know how strict Joshue Tree is at enforcement, but in Denver and Colorado Springs here, you could probably get away with an STR listing for three months without the license. But again, if you're going to take it down to change out furnishings anyway, then the timing could work out well.

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    Hey @Thu Pham, gratz on the new place! Joshua Tree is a bit of a tough market as there are a lot of STRs in the area.

    Be prepared that your first year might be a little thin as you are new and need to build up some reviews to get rolling.

    The interior is a bit of a toss up. One you have furniture right there ready to go but if you want to make some kind of major design change, then just let it go and get to work on the new look. You have 3 months (potentially) to get it all sorted which should be pretty easy.

    If someone is selling a STR, that doesn't mean there are issues. There are a bunch of reasons people sell a property. Buying a new one, changing tactics to LTRs, etc etc. Look at the current reviews and see how people feel about the place. If it has a good review history, there probably isn't any issues with the place.

    BTW - AirBNB is a platform where you list your Short Term Rental. Get it listed on VRBO as well. Those 2 will generate plenty of bookings if you have a great place and priced right.

    0Reply
  • Matthew Becker
    Developer · Moscow Idaho · Member since 2024 · 224 posts · 143 votes
    1y

    I would generally not buy a current STR because the people price it based on STR income. STR's don't create real estate value they are a business I have a dozen and am building 2 more this year so I like the business model and I have over 100 regular rentals. I do at times sell to dumb people with bad agents who will over pay for a property because of the revenue it generates as a STR. But they could just buy the house or condo next door and go to cosco and spend $10k making it nice like my wife does. IKEA stuff does not last. Get good beds, pillows, sheets and don't simp. I look at a property and base value on market rent not STR rent. If it is valued at market and you get furniture for less than cost then great. But if value is based on STR walk away. If it does not cash flow as a stand a loan rental don't buy. The city you live in at any point could just create restrictions on STRs and you will loose your ***. This has happened all over the country and will continue to happen because we are becoming a renter nation and we will probably never keep up with the housing supply. We are to far behind and we have no labor force. I realize this is a very long answer to questions you never asked. But I know several people who made this mistake even after I warned them including someone who dumped 3M into a fund that promised to pay 10% return. In 2 years he has gotten nothing and it was focused on Austin TX so they have probably lost 30% in value as well, can't get a loan and will go broke because of too much overhead. Good luck

    3Reply
  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y

    Hi and congrats in getting into the STR space! I purchased one STR last year that was already operating as such (it wasn't my first, however). I chose to keep the existing rentals - here was my thinking.

    1.  It was the tail end of high season and while I knew I could get a higher ADR on my own (I own the unit next door and know the market very well), I would have had to make some changes before listing it myself to do better and in this case, time was money.

    2.  Most places in SWFL already come furnished (even non rental properties) so it was already set to go.

    3.  These rentals wouldn't count against me (e.g. if they had bad reviews, they wouldn't be on my listing since the old property management company just paid me out).

    This gave me the opportunity to get the tail end of the high season and get some money in the door.  It also gave me a month to order furniture and think through the decorations and line up contractors so all in all, it was a win to keep the rentals. 

    I would look at the value of the rentals before you make a decision to see if that makes sense for you.

    Regarding the furnishings, if you have to pay more for them (again here in FL, properties are generally listed fully furnished and you don't really get a discount to tell people to take the crap out - in fact, I had one guy refuse a good offer because one of my conditions was for them to take their crap! I had to buy it and get rid of the stuff...ugh), and you don't love them, I wouldn't keep them. My guess is that if it is a STR, they probably don't want them either and it would be more work for them to take them.

    Generally speaking, I like to put my own touch on everything.  Paint walls, make sure everything is in great condition.  With that said, when you start renting it yourself, under your listing, make sure you stay in it yourself to see what it needs and how it operates.

    Hope this helps and good luck with you venture!

    2Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    I encounter this semi often as I broker to buyers and also own a PM company so often have to do the same or similar transition as you are looking for, for my clients.  This is how I would recommend doing it:

    First a caveat I am in Tampa, FL and do not know any rules or laws for CA or dealing with the permits for Joshua Tree.

    1. After inspections and appraisal come back satisfactory make a new listing for the property. 

    2. Block out the dates of future bookings.  The current owner will tell Airbnb/VRBO about the sale and the platform will refund and cancel the booking and provide the new booking link to the guest.  Please note they are not required to book your property so once they receive their refund they can and may book elsewhere.  Communication is key.

    3. Service these guests along with any new bookings you receive.

    4. Personally I would recommend purchasing the furniture.  Usually you can negotiate it for a few thousand and buying new costs about $20/ft.  I would use this furniture and the existing photos so I could go ahead operate.  You can then block out some time in slow season for a refresh and also indicate your plans in your listing. IE **UNDER NEW OWNERSHIP WILL BE UNDERGOING IMPROVEMENTS AND REDECORATING JULY-AUG 2025**

    I hope this helps, good luck!

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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    3Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    I am doing a Joshua Tree closing right now and the future bookings were negotiated into the contract! 

    0Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    1y

    Hi Thu - Congrats on your first STR purchase—so exciting!

    If you buy the existing furniture, it’ll save you time and let you start hosting sooner, especially if the permit comes through quickly. But if the permit takes a while (like the full 3 months), you’d have time to decorate the place exactly how you want.

    As for the bookings, if the permit gets approved fast, you could take over the current ones for instant income. If there’s a delay, it might make more sense to cancel or refund those bookings and use the time to get everything ready for a fresh start.

    Since it’s Joshua Tree and the peak season is winding down, it’s worth deciding if you want to jump in now or take some time to set things up for a solid relaunch.

    Good luck, and let me know if you need any more advice! 

    1Reply
  • Jeff Langley
    Member since 2021 · 167 posts · 141 votes
    1y

    I don’t like taking future bookings from a previous owner. I’m buying to improve the property, listing, service, etc so i do it right away. I also prefer to screen the guests and set my own price/stay restrictions. This also leads to the reviews based on my criteria and setup, not the previous owners. 

    2Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    1y

    So many answers that you're probably more confused than not. Boil it down to one thing...what are your goals for the property? Where do you want to be numbers wise, and how do you want the property to look one year from now. Once you have those answers and find out how Airbnb would penalize canceled bookings...that alone is huge deciding factor for some old/new STR homeowners....you can move forward with the best answers that would help you meet your 12-month goals!

    [email protected]330-557-3021
    0Reply
  • Jeff Langley
    Member since 2021 · 167 posts · 141 votes
    1y
    Quote from @Sarah Kensinger:

    So many answers that you're probably more confused than not. Boil it down to one thing...what are your goals for the property? Where do you want to be numbers wise, and how do you want the property to look one year from now. Once you have those answers and find out how Airbnb would penalize canceled bookings...that alone is huge deciding factor for some old/new STR homeowners....you can move forward with the best answers that would help you meet your 12-month goals!

    Airbnb has never penalized bookings when the property is sold in my experience, just to provide documentation it was sold. 
    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    1y
    Quote from @Jeff Langley:
    Quote from @Sarah Kensinger:

    So many answers that you're probably more confused than not. Boil it down to one thing...what are your goals for the property? Where do you want to be numbers wise, and how do you want the property to look one year from now. Once you have those answers and find out how Airbnb would penalize canceled bookings...that alone is huge deciding factor for some old/new STR homeowners....you can move forward with the best answers that would help you meet your 12-month goals!

    Airbnb has never penalized bookings when the property is sold in my experience, just to provide documentation it was sold. 
    That is great, hopefully they never do! But in one of our markets a STR homeowner that sold their property a couple months ago, had to pay money to Airbnb for canceled bookings.
    [email protected]330-557-3021
    0Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @Zach Edelman:

    I am doing a Joshua Tree closing right now and the future bookings were negotiated into the contract! 


     Hi Zach, congrats on closing your property! Would you mind sharing how you addressed the transition period in your contract? My property is in Twentynine Palms so I can't "assume" the current license while applying for a new one. 

    0Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @Andrew Steffens:

    I encounter this semi often as I broker to buyers and also own a PM company so often have to do the same or similar transition as you are looking for, for my clients.  This is how I would recommend doing it:

    First a caveat I am in Tampa, FL and do not know any rules or laws for CA or dealing with the permits for Joshua Tree.

    1. After inspections and appraisal come back satisfactory make a new listing for the property. 

    2. Block out the dates of future bookings.  The current owner will tell Airbnb/VRBO about the sale and the platform will refund and cancel the booking and provide the new booking link to the guest.  Please note they are not required to book your property so once they receive their refund they can and may book elsewhere.  Communication is key.

    3. Service these guests along with any new bookings you receive.

    4. Personally I would recommend purchasing the furniture.  Usually you can negotiate it for a few thousand and buying new costs about $20/ft.  I would use this furniture and the existing photos so I could go ahead operate.  You can then block out some time in slow season for a refresh and also indicate your plans in your listing. IE **UNDER NEW OWNERSHIP WILL BE UNDERGOING IMPROVEMENTS AND REDECORATING JULY-AUG 2025**

    I hope this helps, good luck!


     Hi Andrew, thanks for your recommendation! I will likely follow what you outlined above, but won't open my calendar right away to allow time for the permitting process. Appreciate your tips! 

    1Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @John Underwood:

    If you want the furniture, just negotiate that and put it in the contract.

    Could you lease it from them for those 3 months and operate under their permit till yours is available?


     Hey John, I had not thought of leasing the furniture from them until I can redecorate during slow season - great suggestion! Unfortunately I cannot operate under their permit until mine gets approved. Thanks for your suggestion! 

    0Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y

    Hi everyone, 

    Thank you for all of the thoughtful comments and suggestions! I finally got ahold of the city today and they said the permitting timeline can be as fast as 3 weeks to 3 months, and is up to the owner's application and readiness. 

    This property has been doing great on Airbnb with a 71% occupancy rate and great reviews. I did a comping analysis and this would cash flow as is and do well with some added amenities I plan to add to it. We just did inspections yesterday and nothing major came up. I am told the owners are selling to buy a bigger property. 

    Given the permitting timeline, I will offer to purchase some of the furniture and redecorate the rest (so half and half to reduce some furniture building time). For bookings, I am thinking of opening my listing calendar starting in ~April and trying to capture those existing bookings. 

    Thanks again and I wish you all a happy and successful real estate year! 

    1Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @Sarah Kensinger:
    Quote from @Jeff Langley:
    Quote from @Sarah Kensinger:

    So many answers that you're probably more confused than not. Boil it down to one thing...what are your goals for the property? Where do you want to be numbers wise, and how do you want the property to look one year from now. Once you have those answers and find out how Airbnb would penalize canceled bookings...that alone is huge deciding factor for some old/new STR homeowners....you can move forward with the best answers that would help you meet your 12-month goals!

    Airbnb has never penalized bookings when the property is sold in my experience, just to provide documentation it was sold. 
    That is great, hopefully they never do! But in one of our markets a STR homeowner that sold their property a couple months ago, had to pay money to Airbnb for canceled bookings.

     These are good insights thanks Jeff and Sarah, I will look into this for my market. 

    1Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @Michael Baum:

    Hey @Thu Pham, gratz on the new place! Joshua Tree is a bit of a tough market as there are a lot of STRs in the area.

    Be prepared that your first year might be a little thin as you are new and need to build up some reviews to get rolling.

    The interior is a bit of a toss up. One you have furniture right there ready to go but if you want to make some kind of major design change, then just let it go and get to work on the new look. You have 3 months (potentially) to get it all sorted which should be pretty easy.

    If someone is selling a STR, that doesn't mean there are issues. There are a bunch of reasons people sell a property. Buying a new one, changing tactics to LTRs, etc etc. Look at the current reviews and see how people feel about the place. If it has a good review history, there probably isn't any issues with the place.

    BTW - AirBNB is a platform where you list your Short Term Rental. Get it listed on VRBO as well. Those 2 will generate plenty of bookings if you have a great place and priced right.


     Thanks, Michael! Really excited for this next adventure. This property has great reviews and is consistently booked. We did inspections yesterday and most of the major items have been upgraded in the last couple of years, so all good signs! I'll look into VRBO as an additional platform as well, thank you!

    0Reply
  • Keagan Scott
    Realtor · Indianapolis, IN · Member since 2017 · 40 posts · 14 votes
    1y

    Hi Thu, congrats on going into escrow—exciting times ahead! 🎉

    I've helped clients transition into STR ownership before, and your situation brings up some great questions. Here's what I've seen work well:

    1. Furniture Purchase:
      If the furniture fits the vibe you’re going for and is in good shape, buying it can definitely help you hit the ground running. I’d suggest negotiating the furniture into the sale and then slowly swapping pieces later as you personalize the space. This approach avoids downtime and lets you start earning right away.
    2. Future Bookings:
      Taking over bookings can get tricky since Airbnb doesn’t allow direct transfers between accounts. Some hosts I’ve worked with have asked the seller to co-host temporarily while transitioning the listing to the new owner. Others have simply created a new listing and had the seller notify guests about the change. Either way, clear communication with the guests about who’s managing the property is key to keeping reviews and satisfaction high.
    3. Permit Timing:
      The permit delay makes things tougher, but if you buy the furniture and keep future bookings, you might be able to use that time to update décor piece by piece without fully shutting down operations. Alternatively, you could pause bookings for a short period to complete any bigger changes without rushing.

    It really comes down to whether you’re prioritizing immediate income or taking the time to make it 100% yours. Both approaches can work—you just have to decide what feels right based on your timeline and goals.

    Good luck with the closing, and feel free to reach out if you are ever looking in Indiana! 

    0Reply
  • McKenzie Stouffer
    Rental Property Investor · Greenville, SC · Member since 2021 · 11 posts · 8 votes
    1y

    I own and manage a portfolio of STRs across the US. I purchased existing STRs that cash flow! I closed on one in SC last month and just completed this future booking conversion process.

    Firstly, I would like to double down on everything Andrew Steffens mentioned 1000%.

    One incredibly important question, how are the reviews from the current listing and is there anything with the existing furniture that would give you a bad review? If not, negotiate to buy it, get future cash flow secured, & take the next couple months to do the updates in between guests then get updated photos. P.S. Get a signed bill of sale including the furniture at closing for tax depreciation.

    Communication is key! I would recommend matching old reservation rates and offering free gifts to secure good reviews and booking momentum. After you've completed some updates & have reviews start to increase your rate.

    Feel free to reach out anytime if you have questions :)

    1Reply
  • Thu Pham
    OP
    Member since 2023 · 13 posts · 6 votes
    1y
    Quote from @McKenzie Stouffer:

    I own and manage a portfolio of STRs across the US. I purchased existing STRs that cash flow! I closed on one in SC last month and just completed this future booking conversion process.

    Firstly, I would like to double down on everything Andrew Steffens mentioned 1000%.

    One incredibly important question, how are the reviews from the current listing and is there anything with the existing furniture that would give you a bad review? If not, negotiate to buy it, get future cash flow secured, & take the next couple months to do the updates in between guests then get updated photos. P.S. Get a signed bill of sale including the furniture at closing for tax depreciation.

    Communication is key! I would recommend matching old reservation rates and offering free gifts to secure good reviews and booking momentum. After you've completed some updates & have reviews start to increase your rate.

    Feel free to reach out anytime if you have questions :)


    Hey McKenzie thanks for sharing! Did you ever face any permitting dependencies? My challenge is that I don't know when exactly I will be able to obtain the STR permit from the city, so I don't want to convert guests too prematurely.

    0Reply
  • McKenzie Stouffer
    Rental Property Investor · Greenville, SC · Member since 2021 · 11 posts · 8 votes
    1y

    Hi Thu, I have not purchased any properties that require permitting yet. If are confident you will receive a permit, then somethings to think about...

    #1 I would call the city rentals department directly and ask if the seller's license will remain active until the day yours becomes active. Be friendly :), it's always good to form relationships with the city. 

    It looks like according to the county site (sbcounty.gov) they require all renter payment go to the active owner. You could wait to close until you have your license and rather rental arbitrage the unit from seller until then. Rent it from them and re-rent it out until you own it (see link). You might be able make your own listing & keep profit while the owner has the license. You could form a month to month lease with a just a days notice to vacate so you could end it as soon as you get your license ready to close, the seller might be open to it.

    https://www.hostaway.com/blog/rental-arbitrage-joshua-tree/


    Or, you could continue to list on the seller's Airbnb and you could become a full-access co-host on their account - handle all communication, pricing, etc. Airbnb came out with a new co-host option where you could get paid for your services to assist owners by selecting % of rents...maybe have him pay you 99.9%? Payouts would have to be set up from the sellers primary Airbnb account and you would want a contract written. You definitely would want to read through the county laws again.

    If you don't want the extra load up front, best to wait until you get the license. If you're confident on closing and your numbers rental arbitrage could be a good option for you.

    0Reply
  • Josh Ball
    Real Estate Agent · Louisiana · Member since 2017 · 215 posts · 147 votes
    1y

    Congratulations on jumping into the STR market.

    I recently purchased a property that was being used as a STR without issue. The seller had a good rental history strictly on VRBO & decided to move onto other things. We arranged closing during a slower period of time & had him leave everything (furniture, inventory, guides, etc.) literally bought it & could start taking booking the same day. We didn't because we needed to provide POS in order to obtain our STR permit being that previous owner had a permit on the property already. Something to look into in your case.

    I would recommend having the seller send message to all people already booked with your new listing & have him contact AirBNB or VRBO to cancel those reservations due to a sale.

    0Reply
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