Coping strategies for Short term rentals in wake of Covid 19
Covid 19 is being viewed as one of the biggest challenge to human existence in modern as it has affected almost facets of life. Health is the most crucial of all and governments have to dig dipper into their financial reserves to at least keep health services running. There is also great pressure on governments to keep their populations fed and with an income in an era where businesses have been closed down in an effort to fight the spread of the virus. Tourism and travel is one of the sectors which have been hard hit by the pandemic and so has the short term rental business. Short term rental property owners find themselves on the edge but not all is lost.
Airbnb on March 14 announced its “extenuating circumstances” policy which states that all guests booked for check-ins between March 14 and May 31 would be eligible for full refund on cancellations. It also announced a $ 250million relief fund and another $10m to help its Super Hosts. These funds will be accessed based on a vetting criterion which for the Super hosts limits beneficiaries to those having more than one property. These funds could help cushion some of the hosts who don’t have enough savings to survive the lockdown season.
Long term rentals
Despite the limited travel, there are still people who are moving from one place to another and still need rentals. Offering long term rentals can help keep the business growing before life gets back to normal. There are people relocating from areas hard hit by the virus or those on a lockdown to places where the rules are not very limiting. This is a growing market as the effects of the disease continue to be felt in places like New York and California. You can find long term hosting options from Zillow, OpenRent, Turbotenant
Homes near Hospitals
Covid 19 has affected thousands of people and many are ending up in hospitals. This means that relatives and dependents are also looking for accommodation near hospitals as they keep watch on their loved one. Properties near hospital can target this class of renters for short term stays. There are also many health professionals and care givers who are on the move to combat the corona crisis and this is also another target market. Some countries are requiring suspected cases to be quarantined away from their families and this has created demand for decent accommodation in many neighborhoods. Quarantine periods range from 2 weeks to a month. Recovered people are also sometimes advised to keep safe distance especially from children and the old and they are also looking for accommodation as the monitor their health
See our post on Housing for Nurses
Lower rates and incentives
Most businesses have closed down and as such incomes are very low. Lowering your rates could help attract the few remaining renters in this economic crisis. This could help take care of overheads instead of digging deeper into your reserves. Lower rates can also be coupled with other incentives to add to the appeal of a property. Incentives could include free internet, free power and laundry services.