COVID-19 has brought many challenges to real estate investors. The Airbnb apartment market has taken an especially interesting turn during the pandemic. As travel restrictions increased, many expected to see Airbnb hosts struggle to fill their spaces. However, as researchers from the University of Nevada discovered, Airbnb hosts who maintained a standard level of cleanliness experienced an increase in occupancy and rental income from July 2019 to July 2020.
At first, Airbnb apartment owners experienced a sudden dip in business as travelers canceled reservations. However, another report found that home rentals have outperformed hotels since the onset of the pandemic in 27 global markets. These findings suggest that hosts who are committed to providing an exceptional experience for their guests may end up making more income, not less, during and after the pandemic.
How People are Traveling During COVID
While travel restrictions were enacted globally, people still had to leave their homes for various reasons, ranging from business travel to taking a socially distanced vacation. An Airbnb rental can feel safer than getting a hotel room, especially in areas where COVID-19 rates are exceptionally high.
Some remote workers have utilized Airbnb in their areas to simply get a change of scenery. In these cases, workers are often city dwellers seeking fresh air and extra outdoor space by renting an Airbnb in a suburb or countryside.
Should You Buy an Airbnb Apartment?
As more people embrace remote work, the market is experiencing a rise in suburban home prices. Simultaneously, many urban areas are seeing a drop in prices, meaning now could be a great time to buy an Airbnb rental property in or near a city center.
If you own an Airbnb apartment in a suburban or rural area, follow cleanliness guidelines and be prepared to host remote workers looking for a change in scenery as well as long-term renters.