Due to COVID-19, Airbnb long-term rentals are becoming a popular hosting alternative to bring in rental income. Because of travel limitations, the demand for short-term rentals has dropped. Many hosts have had to introduce mid or long-term stays in order to keep their businesses afloat.
These types of stays are gaining popularity with domestic travelers, and people working from home but looking for a change of scenery. Longer stays can help boost occupancy and generate consistent rental income.
Read on to discover what long-term Airbnb rentals are and what benefits they can bring to your vacation rental business.
According to Airbnb, a short-term stay is less than 28 days. A stay that becomes 28 days or longer counts as a long-term or “monthly” stay by Airbnb. Not all rentals on Airbnb offer long-term stays, as hosts decide whether to make their properties available for longer stays.
The reasons for renting might also differ between short and long-term stays. Short-term renters usually look for a quick break or vacation. They generally return home once their booking is over. Airbnb long-term rentals tend to attract people who are traveling for work (like medical professionals) or study purposes. People who have been at home for months due to the pandemic might also book a long-term rental for an extended break.
To help guests find long-term rentals, Airbnb now allows guests to select and book longer stays in the “places to stay” section of their site. Rentals that offer longer stays will appear for bookings that are 28 days and longer in length. The listings of these long-term Airbnb rentals will also be marked as offering amenities suited for longer stays.
The coronavirus pandemic has interrupted daily life, including traditional vacations. With international travel on pause in most countries at the moment, many people are looking for alternative ways to holiday. “Nearcations” and “staycations” are a popular solution. They still allow guests to enjoy a vacation within their own country.
The pandemic has also affected businesses and the housing market. Many people are currently working at home and will continue to do so in the long-term. Work-from-home professionals are booking vacation rentals that offer a “home office. This allows them to work while still enjoying a change of scenery. College students and interns may also book Airbnb long-term rentals, as they offer more privacy than hotels and private dormitories.
Long-term and monthly rentals provide a reliable income stream for hosts experiencing a drop in bookings. Although hosts can usually earn more from short-term renting, it can become a problem if bookings drop.
Long-term renting can solve the issue of a lower occupancy rate. Many guests who book long-term rentals are looking to stay for at least a month, if not longer. Airbnb long-term rentals can thus help hosts sustain their business during their quieter months.
Longer rental periods can also reduce hosts’ workload, as they won’t need to spend as much time and money on marketing their rentals and cleaning.
Long-term and short-term renting both have their own advantages and disadvantages. When deciding whether to offer long-term Airbnb rentals to guests, you should look at several key factors, including:
To calculate what you should be charging, take a look at what similar long-term Airbnb rentals in your area are charging to get an idea. Then compare this amount with what you have already earned from short-term renting to decide if you could be earning more.
If you only want to offer long-term renting during your low season, then only compare your net revenue from your low season to how much you could make in the low season from a longer rental period.
There is no right or wrong answer on whether you should offer long-term rentals to your guests. It depends on your business needs and what you want to do with your vacation rental. If you’re unsure, you can run a test phase in which you list your rental for long-term occupancy and see if you get any queries or bookings.
To market your rental to guests looking for longer bookings, you will need to optimize your Airbnb listings as needed. There are three ways you can optimize your listings to encourage them to book your Airbnb long-term rental:
Although long-term renting may not give you the same opportunity to earn as much profit as short-term renting, Airbnb long-term rentals are a reliable alternative for situations where travel is restricted or bookings are low.
Whether you offer short or long-term rentals, using vacation rental software, such as iGMS, will take your rental management to the next level. Offering a full range of functions essential for successful property management, iGMS will set your business up for success by providing:
Many hosts are already using iGMS to set themselves apart from their competitors and provide a better service to guests. Are you ready to give it a try?