If you own a vacation home near Disney or anywhere in Central Florida, chances are you’ve spent time enjoying it, renting it out, and possibly dreaming of selling it at a profit one day. But there’s one thing most vacation home owners don’t track properly and it could cost you thousands in taxes, delay your closing, or even disqualify you from a 1031 exchange.

That one thing?
👉 A detailed, documented Profit & Loss (P&L) and improvement history for your vacation home.

Let’s break down why this matters, and how you can fix it before it becomes a problem.

💰 1. Why Your P&L and Upgrade Records Matter More Than You Think

Whether your vacation property is used primarily as a rental or occasionally for personal use, tracking the annual income, expenses, and capital improvements is not just good bookkeeping,  it's a legal and strategic advantage when it comes time to sell.

Here’s why:

• Potential buyers want data. Serious buyers for short-term rentals want to see booking history, net income, and ROI potential before making an offer.

• Lenders want validation. If your buyer is financing the home, lenders often ask for 12–24 months of income/expense history on vacation rentals.

• 1031 exchange eligibility depends on accurate records. If you plan to defer capital gains taxes using a 1031 exchange, the IRS requires the property to have been held for investment purposes  and documentation is key.

🧾 2. What You Should Be Tracking (If You’re Not Already)

Here’s a simple checklist every vacation home owner should have ready at all times:

• ✅ Annual profit & loss reports (ideally broken down monthly)

• ✅ Occupancy rate and booking history

• ✅ Management company records or Airbnb/Vrbo summaries

• ✅ Capital improvements (roof, pool, AC, flooring, etc.) with receipts

• ✅ Dates of personal vs rental use (for IRS reporting)

• ✅ Depreciation schedule (if you’ve claimed it on your taxes)

Keeping this data organized means you're ready to sell anytime, and can confidently justify your pricing and investment value.

🧠 3. Most Sellers Wait Too Late - Here’s How to Be Proactive

Most vacation home owners don’t realize they need this information until a buyer asks, a tax advisor needs it, or a 1031 deadline is approaching. By then, you’re scrambling through old emails, online portals, or trying to remember what you spent on upgrades five years ago.

Instead, I recommend setting up a simple digital file or spreadsheet to track:

• Yearly income/expenses

• Maintenance & upgrades

• Utility bills

• Booking data (export from Airbnb, Vrbo, or your property manager)

Even better? Your real estate agent (me!) can help you get ahead by preparing a sale-readiness file that makes your home easier to market and more attractive to serious buyers.

🎯 4. Bottom Line: Smart Owners Plan Ahead

If you’re considering selling your vacation home in the next 6–18 months,  or even someday, starting this tracking now is one of the most valuable things you can do.

At Vacay & Co Real Estate, we specialize in helping Central Florida vacation homeowners sell smarter, earn more, and reduce tax stress with the right plan from day one. We’ll help you prepare the documents buyers and CPAs love — and position your home to stand out in a competitive market.

📞 Let’s Talk Strategy

Want a free Vacation Home Evaluation or Seller Prep Checklist?
Reach out today and let’s talk about what your property could be worth  and how to prepare for a smooth and profitable sale.

📧 [email protected]
📱 321-333-1338
🔗 www.vacayreflorida.com/propertyevaluation