Knox short-term rental.
2020 brought forth disruption to every business sector. However, it was a particularly difficult year for short-term rental hosts.
Yes, we’re talking about the Air BnB folks that have been faced with continual turbulence since the pandemic first made ground in early 2020. While there have been many challenges to overcome, the start of the new year is providing short-term rental hosts with new solutions… and Knox Financial is here to help, too.
Let’s look at what short-term rentals have gone through in 2020 and the ways they can cultivate success in 2021 and beyond.
Short-Term Rental Woes
Short-term rental hosts have been served their fair share of troubles thanks to COVID.
Besides a major interruption to operations that took place during the market closures last year, the pandemic has initiated lasting changes to short-term rental regulations in the post-COVID world.
The entire vacation arena was put on pause when social distancing concerns made short-term stays and traveling impossible. Short-term rental operators faced a sudden and unexpected succession to their income streams. To make matters more troublesome, new government regulations are continuing to constrict the use of short-term rentals.
While traveling has yet to regain its momentum, short-term rental hosts are still facing uncertainty.
What To Do Next?
With all this on their plate, many Air BnB’ers are likely seeking answers to the problems that they are facing today. What can short-term rental hosts do to cultivate greater stability amid market uncertainty?
Short-term rentals have indeed seen major successes in the past, but 2020 has taught everyone that short-term rentals are subject to volatility. Moving forward, short-term rental hosts should seek solutions that balance out their investment and add greater stability to their portfolio.
How Short-Term Rental Owners Can Get Back on their Feet
Fortunately, short-term rental hosts can regain their strength in the post-COVID market. Here are a few options that can enable short-term rental hosts to recalibrate their business models according to today’s market.
1. Build a New COVID-Minded Plan
If you’re still going to be using your income-producing property as a short-term rental in the future, it’s a good idea to take this time to establish new best-practices for your business.
Property owners should be especially concerned with mitigating the possible health and safety risks associated with the pandemic. In this case, short-term rental operators should be thinking of ways to enhance the cleaning and sanitation practices in between guests.
Being able to market a leading safety plan will help guests feel more comfortable choosing your vacation rental over competing hosts. It’s 2021 and new operation plans are a must for short-term rental operators looking towards the future. When this business is finally ready to kick-off again, property owners want to be ready.
2. Turn Bedrooms into Separate Units
Design can work wonders on revamping short-term rental properties.
This is especially true in the case of homeowners that have been renting out rooms in their house to guests. Naturally, the close-proximity and shared spaces of this plan make it no longer viable for the time being. However, investing in a renovation project can help property owners make things work in a pinch.
Building on a separate entrance for your one-room rental can help to accommodate social distancing considerations that will likely stick around as a lasting “new normal.” Creating a separate space, which makes a single room feel like its own independent area, is a good idea for short-term rental hosts moving forward.
3. Consider Single-Family Rentals
The truth is that short-term rentals are facing immense turbulence right now. But, the vacation arena is not the only way that property investors can leverage their income-producing properties. Now is a good time to look at the benefits associated with converting your short-term rental into a traditional single-family rental.
With this strategy, there’s no need to worry about gaps in income when guests aren’t booking your home. Property owners can relax and rely on a steady stream of rental income, month after month. Turning your home into a residential rental can maximize your property’s investment potentials — especially in today’s market.
How Knox Financial Can Help
If you’re interested in learning more about owning a single-family rental, look no further than Knox Financial. Knox offers frictionless ownership to property investors, making it easier than ever to generate passive income from your assets.
As the first wealth advisors dedicated to serving property owners, we’re looking forward to helping you actualize your investment goals. Learn more about what Knox can. do for you.