honoring future bookings of vacation rental?

14 years ago

Does anyone know if you purchase a property that has been prebooked for vacation rentals, if you are obligated to honor them? What if you just want to use it for yourself? Do you just have to 'write it off' for a season?

Comments (7)

C Marlin
14 years ago
That would be negotiated at time of purchase. If you do not want to honor the rentals, have the seller notify and refund deposits and rent.
If you honor the rental, the seller will transfer all the paperwork and deposits to you.
You would report the rental income, on your tax return.
kudzu9
14 years ago
Totally apart from the ethics of not honoring pre-booked rentals, if you have them and you don't follow through, be prepared for some very unhappy people contacting you. How would you feel if you had a vacation planned, plane tickets and other arrangements made and paid for, and you got told: "Sorry I'm unilaterally canceling your reservation...good luck"?
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sylviatexas1
14 years ago
You need to check the law in your state;
here, the document with the earliest date must be honored.

If the rentals or leases were executed before you bought the property, you have to honor them.
creek_side
14 years ago
You can always make your offer contingent on the seller successfully negotiating with the lease/booking holders to vacate them. It would probably cost him, but if he really wants to sell, he might be willing to give it a try.
cordovamom
14 years ago
this happened to us once. We vacationed for years in Traverse City, MI in a condo on Lake Michigan. We'd book the same condo a year in advance. So one July we book it for the following July and receive notice from the owner in November that the property has been sold. We received a full refund of our deposit, but that was it. We were a bit upset, but reading through our paperwork we discovered a clause that said the owner had the right to cancel any booking with a 90 day notice and full refund of monies paid.
thistle5
Original Author
14 years ago
thank you all for the info-it's theoretical at this point, I'm not in the position to buy the house, but I did wonder about future rentals, & yes, I would not want to cancel them & ruin anyone's vacation...I guess if it were my first year as a rental owner, I would want to add things so it would be the most awesome rental ever....
Billl
14 years ago
If you want to keep it as a rental, why would you cancel reservations? It can cost a lot of money to market a rental property and get people to book. Also, repeat business can be your lifeblood. Why would you want to cancel somebody's reservation when they very well might come back year after year?