What to expect for properties listed on AirBnb and other booking platforms?
In the last few weeks, businesses all over the world have experienced some of the hardest and most challenging moments since the last financial crisis of 2008. Shops have been closed, markets are stagnant and production in almost every sector has significantly decreased. As days go by, it becomes clearer that the current pandemic will leave a trail of severe consequences in all economy. However, there is one sector in particular that appears to be suffering the most.
Tourism has stoped and with it many businesses fueled by touristis stoped too. Cities are empty and the places that were once crowded with foreign visitors are now left unatended, which brings us to an important question: What will happen to short-term rentals in platforms like AirBnb or Booking.com that rely heavily on tourists?
Though the numbers are still unknown in Portugal, one can learn from what is currently happening in the rest of the world. As stated in a New York Magazine post, in the US "Landlords start withdrawing their rentals from short-term listing sites like AirBnb and are offering them into the market instead"
To face the current lack of demand of short-term rentals, owners are making their properties availble for long-term rentals in hopes of mainting a steady income, even if much lower. "More long-term vacancies and competition in cities will presumably drive prices downward. But nobody is really interested in moving or even looking for an apartment right now, so who knows if the newly available units will move"
Though it´s still early to be drawing conclusions one thing´s for certain: landlords will need to adjust their strategy to keep their properties booked or rented, and one way to do it is by making them availble to the regular rental market. Short-term rentals will always offer bigger margins but the for the time being, alternative solutions are necessary.
Through Nomad City Flats, Real Estate Boutique manages almost 50 apartments for short-term rentals. Since the beggining of the crisis of Covid-19, we´ve been able to maintain occupancy rates of 50%, allowing owners to keep a lower, but regular revenue. If you´d like to know more about our apartments or services, send us a message to firstname.lastname@example.org
or get in contact with one of our Private Brokers
Source: (New York Magazine, 2020)