Short-term rentals are a trend on the increase and worth keeping an eye on.
Over the past week or two I have stayed at a couple of airbnb and other rental listings providers’ properties and will do the same again next week. I have also stayed in a similarly priced room in a lodge sourced through the hotel site booking.com
The results have been mixed. Some airbnb 'hosts' have not even responded to enquiries and booking requests, whilst some have even taken a booking only to back out again a week or two later. The issue here is that the hosts are usually homeowners and not letting agents and so can lack professionalism. On the plus side, I have been welcomed with fine organic chocolates, oyster cards for reduced price tube travel, some excellent homemade granola and even an offer to join a host and her friends for a social glass of wine. That is where the beauty of not being professional and more personal can win out.
My lodge booking through booking.com, whilst competitively priced was sterile, impersonal and well a bit grubby really...I fear for these types of operators as airbnb extends its reach.
A number of major cities...mentioned here is San Francisco, although others such as Barcelona for example are wary of airbnb and home / room rentals operating in an uncontrolled manner. As with London and now San Fran, I expect to see more regulation in the sector and that will raise the bar as far as minimum standards are concerned. However, as is alluded to here also, there could be a knock-on effect to the long-term let market as well. Consider renting a room for £30-£75 a night compared to £500 to £1,000 per month and it is easy to see the attraction of switching over to short-term lets instead.
Long-term lets have the advantage of guaranteed occupancy for a set period of time that can extend from six months to several years as tenants renew their tenancies. This makes the income more predictable. Short-term rentals will inevitably suffer from gaps in occupancy as seasonal demand, varying booking date requirements measured by the day and other factors eat into the occupancy rates and so the total income. In addition, additional services such as cleaning, booking management, meet and greet, etc. add to the costs, making the potential top line returns squeezed down. As a result, extra care needs to be taken to choose a property in the right location for more transient visitors...city centres, tourist hotspots, sporting venues, airports, etc. all offer a regular demand for the fleeting visitor. Additional services such as meals, chauffer services and so forth can add to the revenue but also to the level of involvement in the property, so won’t suit everyone either.
I have asked many of the people I have interacted with over the past couple of weeks if they are aware of airbnb and surprisingly to me many were not. Yet, airbnb is growing and extending it's reach on a daily basis...the demand can only grow over time I am sure, as people become more aware of this alternative. For me, I prefer staying in a more homely or relaxed environment when travelling - in the recent past this was served well by short-term rental apartment-type accommodation but now with the new kid on the block of airbnb, a new sector is opening up...house-shares with owners, garden cottages and even entire house rentals whilst the owner is away. Not only will demand increase but so too will supply, as more homeowners with space and a business mind cease the opportunity.
It is definitely one to keep an eye on...or even venture forth into and so catch a rising wave methinks...check out booking or hosting yourself.
Source & credits: lettingagenttoday