How Is Coronavirus Affecting the Short-Term Rental Market?

It doesn’t matter if you own a short-term rental property like an Airbnb, in San Diego, Phoenix, or Las Vegas, the outcome following during coronavirus has been the same.

In every city as bookings have stopped, and the short-term rental market has been hit hard, because people have been staying home for the last 60 days due to Coronavirus and the once stable short term rental income that Airbnb hosts and other short term rental owners could depend on is no longer coming in.

What does the future hold for owners who have short term investment properties? The answer is simple, Investors who own short-term rental properties like Airbnb’s should consider converting those short-term rentals into long-term rentals.

Long Term Rentals Are the Way to Go

Yes, even though lockdowns are projected to end within the coming month or so nationwide, the overall fear of getting infected with coronavirus is not going to leave the mindset of the general public anytime soon. This along with possible “rolling lockdowns” in the coming months means that short-term bookings may be affected for the next six months to one year.

Thankfully, owners who convert their short-term rental properties into long-term rentals can keep those properties cash flow during the 90-120 days while they wait for the short-term rental market to get back to where it was before coronavirus and the current economic crisis.

Converting a short-term rental to a long-term property is a better choice than just letting a property sit vacant for up to another month.

Long term rental properties are also a safer option that provides less risk for landlords as well.

GoldenWest Management Can Help!

Hiring a property management company like GoldenWest Management is the key to success with owning a long-term rental property because it will save an owner the time, money, and hassle of having to manage that rental property themselves

To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

Reasons Why Short-Term Rental Properties Are Overrated In 2020

Short Term Rental properties like Airbnb’s are a byproduct of the 2008 financial crisis because they’ve been able to benefit from a Bull Market that’s lasted for over 10 years.

Sadly, even though Short-Term rental properties are common in the rental marketplace of 2020, they are highly overrated, especially for these reasons:

Reason #1 – The Business Model Hasn’t Been Truly Tested Yet

Yes, even though we’ve had vacation rentals for years, Airbnb’s and other similar short-term business models have not been “tested” yet.

With the onset of CoronaVirus, short term rentals are being increasingly tested by the day as the threat of this virus has prompted many people who were booking stays in short term rentals to cancel their vacations due to fear of Covid-19 exposure.

Reason #2 – Not Enough Competition in The Short-Term Rental Marketplace

Even though Airbnb may be the “go-to” website for booking short term rentals, this isn’t necessarily a good thing because it means that owners either have to be on Airbnb, or their rental properties will not get the exposure that they need to generate money for their owners.

Reason #3 – High Regulatory Risk

Last of all, but most important, another reason why short-term rentals are overrated in 2020 is that this industry faces a high risk of regulation from city, state, and local governments.

The increased regulations imposed on short term rentals have a lot to do with the rental housing shortage that states like California are facing right now.

Many cities and states are pushing back against short term rentals and Airbnb because of the obvious fact that if most of the rental properties on the market are short term, those properties eat up the supply of long-term rentals and this leaves a rental housing shortage.

What’s the solution to the problem? Short term rental properties are here to stay but if you’re looking for stable income from your investment properties you should consider investing in long term rental properties.

By investing in long term rental properties, you can expect consistent monthly income because the average lease is either month to month, six months, or one year. This means that you can grow a portfolio of investment properties without having to spend a lot of time and effort keeping your rentals occupied.

Contact GoldenWest Management

To learn more about the property management services we can offer you contact us today by calling (866) 545-5303 or click here to connect with us online.