Property Management Council

COVID-19 Affects Vacation Rentals

Life as we have known it has been on hold as we are at war with the coronavirus and it may never return to what we considered normal. Overnight, the trajectory of the entire rental and property management industry has changed with no facet being excluded. This is affecting all segments of short-term rentals, long-term rentals, vacation rentals, residential and commercial properties. The focus of property management and rentals has shifted from being extremely robust to survival mode like so many other industries worldwide. Globally, hospitality and tourism are experiencing almost total shutdown due to this fight against COVID-19. No one is immune from it and locally we are feeling the impact. VACATION RENTALS

At the time of writing this, vacation rentals are frozen with no new bookings allowed until at least the middle of April, possibly longer. Pay cuts and layoffs are rampant due to almost an instant wipeout of the entire tourism industry. Monthly residential rental payments are not being made and many are seeking extensions, forgiveness or forbearance. Commercial buildings are being locked up and left vacant. Shortterm and vacation rentals are closed up and empty. Local rental agencies, Airbnb and VRBO are relaxing their cancellation policies due to the travel restrictions imposed locally to enable refunds or rebooking new dates at no charge.

Guests are seeking refunds but many are rebooking and are continuing to make new future bookings for travel. Renters will still always need a place to stay or call home, residential long-term rental units and commercial properties are continuing to be shown and booked even though some tenants are currently struggling to pay their existing rent. Vacant commercial buildings and residential units still need property management even while they are unoccupied. The world may be on pause but demands still exist for the rental and property management segment of real estate. VIRTUAL TECHNOLOGY IN REAL ESTATE

Real estate has been deemed an essential service and the show must go on; the anticipated adoption of new technology predicted to take place over the next ten years is happening right now at lightning speed. This new digital world has been instantly embraced by so many who otherwise would have been the last to adopt it.

Virtual showings have become commonplace and online communications such as video conferencing has suddenly become the norm. If nothing else, the coronavirus will become known as the catalyst for acceptance of the new digitally connected online world that lies ahead while we wait for the bounce back of the American economy.

Property management and rentals will persevere; enterprises will become accustomed to this new lifestyle; and all will adapt to the new digital changes taking place. Business as usual will be different than before but will come back stronger. New growth and new opportunity is there. Now is the time to adopt technological advances and tailor your business to operate in the new modern world that will emerge from this. • By: Liz Berry, Associate Advisor, SVN | Commercial Advisory Group

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