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Compliance Corner #24
August 15, 2020
SEASONAL RENTALS…………..APPLES TO APPLES!!!
When a property is listed as a seasonal rental but it ends up renting for a shorter period of time, the List Price and Closed Price should be adjusted to match the actual length of the lease. Similarly, when a monthly rental rents for a longer term, the List Price and Sale Price must be adjusted proportionally: monthly/monthly, weekly/weekly, term/term, etc. In other words….Apples to Apples!
For example: a property is listed for $30,000 for Memorial Day through Labor Day (3 months), but it only ends up getting rented for one month. When the listing is closed, the List Price should be changed to reflect it being a one month rental ($10,000).
In these scenarios, please contact SmartMLS so we can adjust the price for you. We will do it in a way so the listing history will not show any price changes, which might lead to confusion for any agents who look at the listing after the fact, use it for comps, etc.
If this is not done, the List to Closed Price ratio will be inaccurate and will throw off statistics.
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As always, please feel free to contact the Compliance Team for additional information.
Compliance questions? Send an email to Compliance@SmartMLS.com or call us at 203-750-6000.
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