There are many ways how you can catch the COVID19 virus and one of the most common ways to have it is by traveling. This is the main reason why a lot of travel industry businesses are now in danger of collapse. A lot of hosts are already hesitant on whether or not to continue in the vacation rental business. Let’s take a closer look at the possible scenarios.
The Curve Differs From One Place to the Next
There is no universal answer as to when can travel resume. It also means that there is uncertainty as to when should travel agencies expect their business to resume. The same can be said when it comes to vacation rental homes. Vacation Homes 365 noticed a significant decrease in booking since the pandemic started this year. Though travel resumed in some places such as New Zealand and Thailand, there are those areas that are still dealing with the virus.
You could have a vacation rental that is based in one of those places that became an epicenter of the virus. On the other hand, you can have your vacation rental based in a place that hasn’t been affected that much.
Decreased Travelers
There is the chance that international travel will not be possible even in the coming months. It means that there is a decreased pool of customers for a lot of vacation rentals as well. There is a chance that a lot of them might call it quits. VacationHomes365.com has already seen several vacation rentals closing.
VacationHomes365 noticed that some places are quite expensive to maintain for a several reasons. One, the property is being rented and hosts rely on the guests for paying the monthly rent of these properties. Next, you also have properties that targeted long-term renters for now.
Should You Close?
Some vacation rentals decided to close their property to guests for now given the cost of operations. Imagine having the property disinfected every time someone comes in. The cost is more than what you will earn. On top of that, a lot of people are hesitant to stay in other people’s property given the scenario these days.
For some, it is practical to close their property for a while. Others, on the other hand, will just repair what needs to be repaired and improve the property to make sure that the vacation rental is going to meet the new normal standards that are most likely going to be imposed soon.
Consider all the pros and cons before you make a decision. In some instances, it is wise to crunch the numbers before you do anything drastic. Remember that there are instances when you may not be able to re-open soon. On the other hand, if you give in and have the property rented by a long term tenant, there is also a chance that you can’t turn the property back into a short-term rental property.
There are a lot of challenges that vacation rental hosts are going to face soon. Given the difficulties of operating with safety protocols in place, it isn’t surprising if it all ends up hurting the business.
