Worldwide: ShortTermRentalz polled 36 property managers and property management companies of varying size from around the world in a survey to see how they were coping with the coronavirus pandemic and its impact on business, as well as asking them for any ideas, tips or strategies which are helping them in the current situation.
Among the key findings in the survey are:
- 55.6 per cent of property managers have not laid off staff
- 69.4 per cent of property managers have closed properties
- Only 36.1 per cent of property managers have had discussions with their landlords about rent reductions or rent holidays
- Only 25 per cent of property managers have suspended contracts with suppliers during the Covid-19 lockdown period
- 62.9 per cent of property managers expect leisure travel to rebound before business travel when travel restrictions are lifted
- Estimates of how long it will take for levels of business to return to pre-pandemic levels vary from immediate to three years
When asked to name strategies which have helped their companies, responses included:
- “We are focusing on over-communication: staff, guests and hosts. It is key to get the facts out there and keep everyone informed as news arrives every day.”
- “Changing business model to mid / long-term lets to generate lower but stable revenue and incorporating weekly cleaning into short / mid-term lets to help cleaners.”
- “We decided to not shut down, remain in full compliance with shelter-in-place laws, and continue serving guests in a responsible manner, ensuring the highest level of cleanliness throughout. Rather than hibernating, we are working harder than ever to serve all of our key stakeholders. This allows us to pay above-market rate rent [despite rent relief and abatement programmes] during these times as well as keeping as many people employed as possible.”
- “We have set ourselves realistic targets in terms of apartment DIY [painting/renovations etc] to work through whilst we have no guests. Hopefully the end result will be even better apartments to market!”
When asked how Covid-19 has affected attitudes to growing their businesses in the future, responses included:
- “Realising who your ideal clients are is a first thing and then going in that direction is second. But I believe every business [or most] needs to clearly understand where they are headed, and this unexpected stop was probably necessary. Having said that, I believe we will be able to reach previous levels in four-six months by trying all possible strategies for growth.”
- “Stable income is key. Try to have a good portion of your homes in three-12 month lets at anytime. Consider other lines of revenues that do not rely on travel.”
- “Steer clear of rent-to-rent. Run a lean model wherever possible and build up cash reserves.”
- “Spread over business and leisure, build a loyal following of repeat guests.”
And looking to the short-term rental industry’s future, comments included:
- “If you are asking me for the idea, I think that we as a short-term rental company (non-hotel accommodation) are in better situation than the hotels and I can see the marketing opportunity to communicate that message with the world. It would be one video with one message that all the industry would share and stand behind. We would start with it in the right moment when travel begins again.”
- “This has been a tough time for all, and most people will be negatively impacted somehow. Governments have been commendable in their actions to prevent the quick spread of the virus. However, at some point, the economic ramifications of such extreme measures need to be considered. Not just in our industry, but across the board.”
- “A huge opportunity is coming to show the strengths of your offering to guests on the other side of this crisis.”
- “Resilience in the travel industry is essential.”
Our thanks goes to all those who participated in the survey. To read the full survey report, click here.
