Coronavirus (COVID-19) Strikes Airbnb Hosts
With the Coronavirus (COVID-19) pandemic infecting Canadians at an exponential rate over the past few weeks, Airbnb hosts are seeing their calendars go empty. This is due to mass guest cancellations, supported by Airbnb’s policy in response to the outbreak:
Reservations for stays and Airbnb Experiences made on or before March 14, 2020, with a check-in date between March 14, 2020 and April 14, 2020, are covered by the policy and may be cancelled before check-in. Guests who cancel will receive a full refund, and hosts can cancel without charge or impact to their Superhost status. Airbnb will refund all service fees for covered cancellations.
Airbnb’s “Extenuating circumstances policy and the coronavirus (COVID-19)“
It remains to be seen whether Airbnb extends this policy to cover a larger date range, as guests who may have booked stays after April 14, 2020 are still responsible for their stays (standard Airbnb cancellation policies apply). This is a bitter pill for those guests as more often than not, they won’t be able to fly out of the country, or enter another country due to flight restrictions.
Airbnb Hosts Turn to Long-Term Renting
Part of the reason many owners prefer short-term renting (aside from the sometimes significant increase in revenues), is that long-term tenants can sometimes take more effort to find and manage than having people staying just days at a time through Airbnb…But COVID-19 is changing that perception, at least in the short-term.
Toronto Airbnb short-term hosts are now facing empty calendars (and condos), with many are now considering year-long rentals to earn some sort of income; effectively putting rental units back onto the market. However, with so many units being available at once, it will still take time for the market to absorb them. It’s a tough time to be an Airbnb host, and many have turned to other platforms such as VRBO, or Craigslist to try and attract a tenant.
Is Long Term Renting the Solution?
The grass isn’t always greener on the other side though…Long-term landlords also have challenges in this environment. These are unprecedented times, and there are no easy answers here; all we can do is share what we see on the market from our perspective.
As a long-term tenant placement service provider, we see many potential renters being cautious about visiting a property, for fear of catching COVID-19. On the flip side, as a landlord, you might also be hesitant to do any showings.
We’ve already seen existing long-term tenants lose their jobs, and are looking to cut their leases short. Students who may be renting or planned to rent a downtown condo near University of Toronto or Ryerson University, may cancel their leasing plans. The impact of this pandemic is real and it’s happening fast. All we can do now is stay home, practice social distancing and wash your hands properly. Let’s flatten the curve first and then we’ll see if things can get back to “normal”.
