No Bailout for Vacation Property Landlords With these, companies like Airbnb and VRBO suffer from a large number of booking cancellations, with little to no new reservations in sight. The on-going crisis gives no guarantee when people will feel safe again to travel and stay in a stranger’s home. Now, with the uncertain future of tourism, both domestically and globally, no one is quite certain when things will get back to normal for the vacation rental market.Īnxiety over traveling caused by the uncertainties of an ongoing pandemic has largely dampened people’s desire to travel, whether for business or pleasure. As you mull over converting your Airbnb to a long-term rental property, consider the following trends hitting vacation rental owners in the wake of the COVID-19 pandemic.ĭemand for Short-Term Rentals Remains Unevenīookings for Airbnbs and other short-term rentals were usually seasonal, but relatively predictable within each season. You should never change your business model lightly. Why Convert Your Short-Term Rental Property Advertise Your Vacant Rental Property Strategically Research Landlord-Tenant Laws in Your Area How to Convert Your Vacation Rental to a Long-Term Rental Property.More Renters Are Looking to Work from Home.New Cleaning Protocols Mean Longer Vacancies & Higher Costs.No Bailout for Vacation Property Landlords.Demand for Short-Term Rentals Remains Uneven.
If you’re a vacation rental owner, you may have already considered shifting to long-term renting. To cut their losses, many owners have started turning their Airbnbs into long-term rentals.
Airbnb hosts are experiencing financial struggles due to canceled bookings, overlapping mortgage payments, maintenance costs, property taxes, and insurance, among others.ĬNBC reported that owners have started selling their short-term rental properties after some states temporarily suspended private vacation rentals because of the coronavirus. Vacation rental companies such as VRBO and Airbnb saw a collapse in demand and revenue due to travel restrictions and the economic fallout of the pandemic.ĪirDNA’s data shows that Airbnb units in the US witnessed a sharp decline in revenue, with New York registering a drop of up to 52% since March this year. Even as the economy slowly reopens and people adjust to a “new normal,” the future of the home-sharing market remains uncertain.
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