Demand for short-term rentals has decreased as a result of decreased travel. Several hosts have resorted to adding mid or long-term stays to keep their companies solvent. Airbnb brief rentals are becoming more popular as a source of rental revenue because of COVID-19.
Domestic tourists and those who work from home but need a change of scenery are increasingly choosing these sorts of accommodations. An increase in the number of guests staying for an extended time might help Airbnb hosts fill their listings and earn regular rental revenue.
Long-term and short-term rental stays are distinct in terms of their length of time.
Airbnb considers a stay of 28 days or more to be a “monthly” or “long-term” stay. If you stay for less than 28 days, you’re considered a short-term guest. As hosts select whether or not to make their houses accessible for longer stays, not all Airbnb rentals allow long-term reservations.
What’s Driving the Increase in Airbnb’s Long-Term Rental Market Share?
For the benefit of guests
The coronavirus outbreak has disrupted traditional vacations. Many individuals are seeking alternatives to foreign travel since international travel has been halted in most nations. People often use the terms “nearcations” or “staycations” to describe this kind of trip. Still, they enable visitors to have a holiday in their nation.
Businesses and the property market have both been adversely impacted by the outbreak. Many individuals now work from home and will do so for the foreseeable future. Booking holiday homes with “home offices” are becoming more popular among those who choose to work from home.
This allows them to work while having a change of environment to look forward to each day. Long-term Airbnb rentals are a good option for students and interns since they provide more privacy than hotels or private dorms.
In the case of hosts
For hosts who are seeing a decline in bookings, long-term and monthly rentals are a stable source of revenue. Although short-term rental hosts often make more money, it might be an issue if reservations decline.
A reduced occupancy rate may be alleviated by renting for an extended time. For many visitors, a month or more in a longer-term rental is the minimum length of time they are willing to consider. Long-term Airbnb rentals may assist hosts in maintaining their company throughout slower periods of the year.
Because of this, hosts will have less to do with marketing and cleaning if they rent their properties for a longer amount of time.
The advantages and disadvantages of Airbnb long-term rentals
A steady flow of income (even during low season and slow months). When you rent long-term, your income will likely stay the same throughout the year. If you’ve seen a decrease in bookings, this might assist boost your revenue.
Management obligations will be lighter. Compared to short-term rentals, tasks like guest communication, check-in and check-out, and internet promotion are reduced when you only rent to one visitor at a time. After the visitor has checked in and settled down, you will only need to interact with them if there is a problem.
In the short-term rental market, there is a lot of rivalries. Each guest has their own unique set of amenities needs. Guest to rental ratios generally favor visitors, who may choose from a wide selection of rentals. Consequently, this is the case. Hosts usually are willing to invest a little additional money to make their properties stand out. This isn’t as prevalent for Airbnb long-term rentals since visitors have different amenity needs. Essential utilities like dishwashers are more important to long-term renters than a hot tub or campfire.
Less flexibility in how you handle your rental. For long-term tenants, room and solitude are worth the money. Airbnb long-term rentals cannot be used over the weekend or on public holidays if you have guests staying in them. As a result, you won’t be allowed to appear at your rental property to do maintenance or inspection work without first contacting the landlord.
Short-term rental prices may be adjusted to enhance profits in peak season and decrease profits in low season. When visitors pay a set monthly cost to rent your house for a longer time, you normally can’t do this. The upside of this is that you’ll be able to make more money in the off-season while simultaneously earning less money in the peak season. Profitability is less likely to be maximized.
All renters may need to be screened. Your visitors are likely to stay little more than a few days or weeks in your home when they book a short-term rental. There is no chance of payment failure since they pay in full upfront. Payment defaults are a real possibility with Airbnb long-term rentals. Performing a credit check on your visitors before allowing them to stay in your home for an extended time is a good idea. There is the potential for this to become time-consuming, particularly if you have many visitors interested in renting out your house.
A Guide to Using Airbnb to Find Long-Term Accommodation
Your Airbnb listing should be optimized for maximum exposure.
Airbnb listing optimization is necessary to attract visitors who want to book longer stays. Airbnb long-term rental bookings may be influenced in three different ways:
Allow for lengthier rental periods. The availability part of your ad should be amended to allow for reservations of more than 28 days.
A long-term cancellation policy is a must. Customers will get a full refund for long-term bookings if cancellations are made within 48 hours of booking and at least 28 days before the booking date. They will be responsible for paying 30 days after the cancellation date if they cancel during their stay or until the end of their remaining stay if it is less than 30 days. If you cancel within the first 48 hours, you’ll get your money back less the first 30 days and the service charge.
Get a rental agreement signed by all of your visitors. Request a signed rental agreement from your visitors if they plan on staying for a lengthy time. You should include this in your house rules so your visitors won’t be startled when they finish their bookings.
Make sure that your rental is favorable to long-term tenants.
Many guests prefer apartments with necessities like a washer/dryer, refrigerator, and equipped kitchen for long-term Airbnb rentals. Creating a workstation and providing high-speed Wi-Fi is a great way to entice working professionals.
There should be a full handbook or welcome book for visitors that includes information on waste collection days, the schedules of any gardeners or cleaners, and so forth.
Rental property management software: how to use it effectively
While it may not be as lucrative as short-term renting, Airbnb long-term rentals might be a viable option when limited travel or low reservations. Using vacation rental software can make all the difference in your vacation rental being successful. Software like Lodgable will seamlessly connect you to multiple bookings sites like Airbnb, Vrbo, and booking.com.