Coronavirus Outbreak and Effect on Short-Term Rentals?

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Coronavirus Outbreak and Effect on Short-Term Rentals?

Tehane GallimoreBusiness Member
Real Estate Broker · Winston Salem, NC · Member since 2018 · 91 posts · 28 votes

Has anyone seen any changes in their short-term rental property activity since the Coronavirus Outbreak has started? Any thoughts on whether short-term rentals will take a hit? My first thoughts would be it probably depends on your location, but I wasn't sure if anyone has started experiencing changes as a response to the virus outbreak?

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Leora Merrell
Rental Property Investor · Member since 2019 · 276 posts · 235 votes
6y

No cancellations for us so far.

Meanwhile, I’m online looking for deals to travel somewhere new with my kids for spring break. I’m not willing to bend to the hype the media is turning this into but am willing to take advantage of the hype-caused price slashing going on. :)

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y
    Originally posted by @Collin Hays:
    Originally posted by @Michael Baum:
    How many coronavirus threads we got going?

    It’s a thread epidemic!  Let’s start another!

    WOOT! Hehe. It is funny, they seem to be multiplying. It would be good if the mods could merge them.

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    6y
    Originally posted by @Ken Latchers:

    Will Coronavirus threads outnumber Arbitrage fortune seeker threads over the next few months?

    Hehe, I wouldn't hold my breath on that one. COVID19 will eventually go away but the virus that is arbitrage will live on! 

    0Reply
  • Mark Huneycutt
    Investor · Asheville · Member since 2019 · 55 posts · 23 votes
    6y

    I own a STRP in East Nashville and it luckily wasn't damaged by the tornado. People still ended up coming this weekend just days after a tornado hit less than 2 miles away that killed many people and wrecked homes/businesses. What I'm saying is it seems like the tornado nor the coronavirus is slowing down business in Nashville so far, at least for me.
    I'm in South Korea so I have an interesting situation effecting short term rentals. Us soldiers have been restricted from coming back home (PCS for me) until May 6th or maybe 60 days after that due to the coronavirus outbreak here. I had booked an Airbnb for myself May 23rd in Western North Carolina. I may have to cancel that due to the Army's new decision. It's not my Airbnb but an example of how coronavirus is effecting short term rentals although this situation is probably more rare. Article below if it posts:

    https://www.stripes.com/us-mil...

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  • Nick Gann
    Real Estate Agent · Murfreesboro, TN · Member since 2019 · 194 posts · 181 votes
    6y

    @Mark Huneycutt

    On our way back from Hawaii we met some folks staying in East Nashville. This was 2 days after storms. They seemed unphased.

    We live hour south of Nashville, no storms here.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Tehane Gallimore:

    Has anyone seen any changes in their short-term rental property activity since the Coronavirus Outbreak has started? Any thoughts on whether short-term rentals will take a hit? My first thoughts would be it probably depends on your location, but I wasn't sure if anyone has started experiencing changes as a response to the virus outbreak?

    I think the outbreak could do long term damage to the entire STR industry. Many listings do not allow refund, which means people who had their conferences cancelled are stuck paying the entire bill. It may sound great for hosts, but this policy will create negative long-term feelings towards STR platforms. It is one reason I already prefer to stay at hotels. I can cancel any hotel reservation with 24 hour notice and not pay a penny. Even airline tickets, you can cancel and get a credit. They charge a change ticket fee, but at least it is not a total loss.

    I think the platforms will be forced to change their policies or hosts will need to change their policies.  

    https://www.msn.com/en-us/travel/news/need-a-coronavirus-refund-for-your-hotel-or-vacation-rental-its-complicated/ar-BB10UWR6

    1Reply
  • Ken Latchers
    Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    6y

    much of the last post is misguided.

    will people stop going to conferences? I doubt it.

    I would be very surprised if this had a negative effect on short-term rentals. They're still growing rapidly.

    you can just cancel your flight? Have you ever taken a non-refundable flight?

    and some people are trying to use coronavirus as an excuse to cancel even when there is no particular Danger but the short-term rentals they had booked before.

    you think you can just cancel any hotel wherever you want? Try reading the news.

    1Reply
  • Sean Gover
    Rental Property Investor · Corrales, NM · Member since 2016 · 117 posts · 28 votes
    6y

    I can tell you that my wife and I canceled a trip to Las Vegas due to the virus.  She has a suppressed immune system and since Vegas is such a melting pot destination we didn't think it was worth the risk.  I also believe that all of us will be exposed to it at some point...I just don't want my wife to be a pioneer.  I want our medical facilities well versed in treatment before she gets it. 

    1Reply
  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    6y

    We own a small 2bdrm that has been up and running 13 months and a large 4 bdrm that has been up and running... 9 days :). Both on Galveston. We weRe pushing to get #2 going for spring break. 

    The 2bdrm has been booked most of the first 2 weeks and has just a couple gaps to fill in the last 2 weeks. Our prices year over year are up, and even without filling those gaps we are already ahead of last year. 

    The 4 bdrm is doing ok for just getting going, but we did have a corona virus cancelation. Our very first confirmed booking was for a 25 person church group for 2 days at $330 a night (plus taxes and cleaning). The stay was booked 2 weeks ago for this coming weekend, and they canceled this past weekend. They canceled and got all their money back as I have Moderate selected on AirBnB. 

    A few hours after the cancelation, the house rebooked the weekend plus 2 additional weeknights this week at $180 a night (plus fees & cleaning).  So more money in the end, and I was honestly nervous about 25 people and am happier with this group of 6. 

    I will say I was hoping to fill the 4 bdrm faster (second main week of spring break is currently not booked, I’m nervous as hell) but I believe that has more to do with just getting the listings up and running with pictures late February and only having a handful of reviews (given by friends and family that came and checked the place out in January/early Feb). 

    1Reply
  • Tato Corcoran
    Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
    6y

    Would love everyone’s input here:

    I own/operate a STR in Milwaukee. There are various local events upcoming that I booked guests for (marathons, DNC, etc). If these events get canceled specifically due to precautions against coronavirus, should I refund my guests? I use the ‘strict' cancellation policy so I certainly won't have an obligation to do so. But I also don't want to be a horrid person. Would love others' opinions on this.

    1Reply
  • Michael Greenberg
    Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    6y

    I receive a weekly update of BP posts and was searching for this very topic.  Yep, just yesterday I had two guests request cancellations and I deferred to Airbnb's recent statement regarding Covid-19.  Once guest is hosting a business team meeting, the other has a 70 year old traveling.  Bummer during high season.

    0Reply
  • Obadiah Roszman
    Investor · Nw Ohio · Member since 2018 · 16 posts · 2 votes
    6y

    For any of you AibBnB'ers out there. Here is link to the policy... 


    - Obadiah Roszman

    0Reply
  • Valerie Rogers
    Property Manager · Aurora, CO · Member since 2014 · 221 posts · 210 votes
    6y

    We have a "no refund" policy except for Airbnb bookings, which are covered with their "strict" cancellation policy.

    At this point in time our response to guests who are wondering if they can cancel & receive a refund because they don't want to travel during the coronavirus situation is "Sorry, no refund."

    But, if there are certain circumstances (such as a member of the party is a senior citizen or the conference or event was canceled due to coronavirus precaution) then I would consider making an exception.

    At all times we would refund the guest's payment if something should happen that would prevent the guest from accessing or using the property, such as it becoming inhabitable due to fire or flood, or a mandatory evacuation due to a storm or hurricane, or roads or airports being closed that would prevent the guest from accessing the property, etc. In these situations then yes, a refund is in order (in my opinion).

    1Reply
  • Janelle Hicks
    Carlsbad, NM · Member since 2017 · 40 posts · 10 votes
    6y

    i spoke too soon. Got my first coronavirus fear cancellation my bigger concern right now is oil/ gas. Our area was booking, u get the feeling that may slow quite a bit.

    0Reply
  • Justin Anderson
    Property Manager · Pigeon Forge · Member since 2016 · 199 posts · 208 votes
    6y

    I own and/or manage cabins in the Smokys and across all of them I've only had a single question about what we're going to do if it becomes a problem.  

    I verified with my two main cleaners what cleaners they use and that it's bleach/anti-bacterial and not just smell good Fabuloso or something.

    0Reply
  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    6y

    Most of the guests going to Galveston are from the greater Houston area. Except for a few weekends, if you want to “socially distance” yourself on our beaches (6’ or 10’) it’s not that tough. I don’t think we’ll lose many bookings, and if we ended up with a 2 or 3 week self quarantine, I’d think we’d still get guests that want to quarantine near the beach. We’ll see. 

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  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    6y

    @Bruce C. we are in Galveston too and noticed the same. Though we have some renters coming down from MO and CO that have yet to cancel so fingers crossed. 

    0Reply
  • Brett Rosenbauer
    Rental Property Investor · Fort Collins, CO · Member since 2019 · 36 posts · 20 votes
    6y

    We are in Fort Collins, Colorado and are still seeing continued bookings into the late summer and beyond.  We have seen a spike in visitor bookings it seem from the state of Texas, which is a big drive....but can be done in a day.  

    We are a college town on the Northern Front Range, but also a former "Forbes #1 place to live" so a super family friendly area.  We don't have any big events like those in bigger metro areas, etc..  So we are not dependent on big destination events and don't have $500.00/night spiked weekends like it seems many have....and thus are now seeing cancellations.  No cancellations for us yet, in fact I think people will take more "staycations" and want to stay away from people (i.e. a hotel) where the virus might be present.

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  • Sean Gover
    Rental Property Investor · Corrales, NM · Member since 2016 · 117 posts · 28 votes
    6y

    Both of our AirBnb units have empty calendars for the next three weeks.  Another cancellation today.  Drastically lowering prices to see if that spurs anything.  

    0Reply
  • Valerie Rogers
    Property Manager · Aurora, CO · Member since 2014 · 221 posts · 210 votes
    6y

    In the 5 days since I posted my first response in this thread things have changed so quickly and drastically that we've had to be flexible and make changes to our original stance.

    As of the writing of this post my husband & I have decided to allow our guests a full refund less a slight cancellation fee (to help pay me for my time in handling the booking and then the cancellation) OR allow the guest to reschedule their booking to dates in the future.

    I've done little else the past few days but handle cancellation/refund requests. It is taking a toll on our finances, but we feel this is the right thing for us to do. 

    0Reply
  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    6y

    Things have changed a little for us too.  So far, nothing has changed at our AirBnB that has been up for a year and was mostly booked going in to spring break from people in the Houston area, and I'm crossing my fingers it stays that way.  We had to drastically lower prices though on the larger house to get this upcoming weekend booked, and we had a guest leave a day early this weekend due to all the concerns.  Also, the Ironman race the first weekend of April in Galveston was canceled, and so our guest canceled.  With the way things are headed, I don't expect to book that weekend.  We will just slash the hell out of prices and hope to keep some revenue rolling in until this all clears up.  

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  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    6y

    @Bruce C. We just booked that weekend. Still a few ppl booking for a small family Easter getaway

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  • Christina Johnson
    Real Estate Agent · Galveston, TX · Member since 2019 · 100 posts · 16 votes
    6y

    We are losing rental income very fast. People are cancelling weddings at the Galvez, Ironman, etc. Trump announced today that this may well not be something we get our arms around until July, at best. 

    Most of my rentals are full this week still. Many of my cancellations are for May and June. 

    I think now would be a great time to buy a short term rental. Several of my investors have contacted me to represent them here on the island as they know some will not have the patience to last through this economic downturn. 

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  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    6y

    @Karl McGarvey 

    That's good to hear.  I'll keep my fingers crossed.  Was it normal rates for you, or did you have to cut prices to get it booked?

    0Reply
  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    6y

    @Bruce C. “Normal” we are a brand new property so we had what we thought were competitive prices and had no yet made a drop for said virus

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  • Bruce C.
    Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
    6y

    @Karl McGarvey

    Well I spoke to soon, and yesterday ended up sucking.  By the end of the day I had 5 cancellations.  

    @Christina Johnson

    Missed your post between ours yesterday.  Same reasons for me losing my bookings, and one of the weddings was this weekend.  If we had the cash, I agree you might be able to pick up some houses at good prices from people that want out.  If bookings get really slim, we might convert to long term rental for the rest of the year and try again next year.  I will not enjoy taking down all that furniture i just put together...

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