Stay, Rent, or Flip? The Airbnb Coronavirus Conundrum
All the complications that have come with 2020 have completely upended many industries, including real estate and travel/vacation. The instability in those two industries has hit the short term rental market (Airbnb and VRBO) especially hard - and for obvious reasons. The travel industry has seen restrictions come and go and come again, the economy has had issues, and consumers are wary about leaving the house without good reason.
Needless to say, Airbnb owners and proprietors have had it rough. Many have adapted since the beginning of this whole thing, but with no end yet in sight (and uncertainty moving forward) it's time for every Airbnb owner to reassess their options and strategy. So, what are the most common courses of action for Airbnb owners in 2020 and 2021? We've come up with three: holding, renting, or cashing out!
Staying The Course
Everyone's financial situation is different, and those using their Airbnb as a side or secondary source of income, the best option is the easiest... and that's simply holding the course. While nobody knows yet how long this situation will last, it's not going to be forever... and if you can wait it out, you'll be in a great position when it finally ends.
Additionally, if you can adapt your property and accommodations to the current environment, you might still be able to generate some income. Things like weekly professional disinfections, guaranteed gaps between visitors, hand sanitation stations and procedures, no contact key exchange, etc., can give potential guests the peace-of-mind needed to keep your property generating income.
Going Long
Converting your short-term rental property to a long-term rental property is another great option for some property owners. While wading into this part of the industry can be challenging - it has its own rewards. Namely, a steady payment every month from the tenant!
Keep in mind... the profit potential will almost certainly be less when changing from a short-term rental model to a long-term rental model. However, for those of you having issues finding visitors in the first place, that regular monthly rent payment can actually end up putting more money in your pocket.
A nice go-between is offering 1 month, 3 month and 6 month rentals. Visiting contractors and consultants love the flexibility of these offerings. Additionally, people in between homes readily take advantage of these "medium-term" rentals. You might have to get a little creative to find renters in this way, but there are resources out there. We recommend heading over to Furnished Finder and getting started.
Cashing Out
However, if you've made back your investment and are ready to get out of the Airbnb/short term rental industry, there's another great option.... Pushing in your chips and cashing out. It's obviously not a decision to come to lightly, but if your property is no longer profitable, and neither of the above solutions work for you, it's time to make a move.
As you probably already know, there's a ton of work that goes into selling a property. That's where we come in! Partnering with RENOMAX Real Estate to sell your Airbnb property is a great way to make sure you get the most out of your investment. We'll work with you to fully convert your rental property into a home for prospective buyers, pay for the renovations, and then work with you to sell it. Our RENOMAX Partner option couldn't be easier for Airbnb owners looking to get out of the game with a nice payday.
Get In Touch
It's been a rough year for Airbnb owners, to say the least... but no need to despair. You have short, medium, and long term options with your Airbnb property. If you choose to sell, we'd love to help. Give us a ring at (540) 737-5617, contact us online, or give us a shout on Facebook!
