Following the reinstatement of partial lockdown due to the resurgence of Covid-19 cases, this has further exacerbated the trouble facing by Airbnb and short-term rental operators since the outbreak.
From bookings fell significantly to income declined sharply, many operators have decided to switch their properties from short-term into the long-term rental, to ride out the virus outbreak.
Here are 7 reasons why you should convert your properties into a long-term rental, or running it in the HYBRID mode.
1. Grim outlook for short-term rental
As the pandemic is worsening globally, international and domestic tourism is unlikely to resume to normal in the foreseeable future, short-term properties would be particularly hit hard. No one is sure when the short-term rental market will ever bounce back to its previous thriving state.
If you tried all means but still struggling to keep your business afloat, it may be prudent to shift to managing your properties as long-term rentals over short-term.
2. Stable demand for long-term rental
The weak property sentiment and the new norm of working from home would create a demand for long-term rental, which can provide a more stable stream of income, pending the revival of the tourism industry from the pandemic.
People are less likely to go on vacation when they are short of cash, but regardless of how the economy is doing, people will still need a roof over their heads.
3. Less administrative burden
With long term lettings, management and upkeep of the rented property would be kept to a minimum, in other words, it is easier to manage.
When it comes to advertising, you will only need to advertise when your tenant leaves, contrary to a short-term rental, where continuous effort is required to keep the property occupied.
4. Convert to long-term rental effortlessly
As an Airbnb operator, most of your units already in ready-to-rent conditions means you can convert your properties to long-term rental effortlessly.
What’s better is if your property has been furnished especially at a prime location with a stylish interior, this will give you a competitive edge over other homes and rent out faster at a higher rental.
5. Less regulatory challenges
In Malaysia, there are still Airbnb regulations like a limitation of the number of stay on your lettings, which could adversely affect your returns.
Taking into consideration the pandemic crisis and uncertain outlook of tourism, these changes can happen overnight and caught you off-guard.
So, switching from a short-term to long-term rental strategy might be the wiser choice for the time being.
6. Co-living is a growing market
Co-living could well be the next big trend for housing due to the skyrocketing property price and global urbanisation.
For people who can’t afford to buy or rent a house on their own, co-living offers the best of both worlds-fulfilling the expectations of comfortable living and affordable rental outgoings.
That said, the market is still in favour of long-term rental over the short-term rental.
7. RentGuard is ready to assist!
If chasing rental, tracking payment every month sounds overwhelming to you, RentGuard rental collection system can be the solution to your monthly woes.
From sending a rental reminder, direct debit of rental, and utilities to generating payment receipt, all our features are within a click away, this makes your life as a property operator easier.
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