Compliance Corner- Seasonal Rentals

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Please note: this article is a snapshot of a message that was posted on the MLS system at some point within the last year.  Things evolve rapidly in our industry, and the information in this article may have changed since it was first published. Compliance Corner articles are not updated after they are published, even if the information contained within has changed.

For the most up-to-date information on this (or any other topic), please visit our SmartDesk.

 

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. 


 

Compliance Corner Archive 

Have you ever wanted to revisit a past Compliance Corner article that is no longer available in Matrix?  Now you can.  Simply click this link Compliance-Corner-Archive or enter compliance corner in the SMARTDESK search bar and you will be able to view all past articles.

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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