Dear AirBnB Host
COVID-19 has, no doubt, impacted your business. As the virus evolved to a pandemic, it became imperative to cease travel, vacationing, and other activities that hastened the spread of the disease. Many of my clients use AirBnB to augment their investment portfolios. For many, the platform provides stable income and flexible use of their homes, apartments, and guest houses.
As the virus halted travel, many of my clients began to despair as, for a few of them who had already retired, their entire income derived almost entirely from AirBnB rentals. Some, as recently as last fall, even took out loans to buy more properties for use as AirBnB space as Southern California, especially in the LA and Orange County regions that, until recently, was extremely profitable due to Disney, Hollywood, etc.
Despite the lack of renters, AirBnB hosts and other vacation home renters aren’t entirely without hope. Five of the nation’s largest banks struck a deal with Governor Newsom to halt mortgage payments and foreclosures for 90 days. This helps homeowners, business owners, and even AirBnB hosts stave off financial ruin, but does little to help these people, like you, manage their day to day affairs and needs.
Staving off financial ruin is fine, but wouldn’t it be better to be making money during this time of turmoil? While short-term rentals are on hiatus due to stay-at-home orders and general common sense, there is very little wrong with converting an AirBnB back into a traditional rental. Yes, AirBnBs usually provide flexibility and can bring in much more money during peak season than a traditional rental, but the reality is that COVID-19 is here for an indeterminate time. It’s a gamble, but one with very little at stake given that a steady renter with a safe income will ensure that your rental is providing you with income as it should. On the one hand, rent won’t be as high as it could potentially be during peak season, but the reality is COVID-19 will cancel peak season this year. COVID-19 could have been like SARS and been contained in just five months with only 8000 infections worldwide, but COVID-19 is turning out to be much more like the Spanish Flu in its ability to spread if not in its lethality. COVID-19 is still gaining ground in the US and California already has almost 10,000 confirmed cases. Owner’s need to see the big picture in regards to their investments.
I am a seasoned Property Manager and real estate salesperson. I manage over 60 units in LA county, Orange County, and the Inland Empire alone. I am experienced in finding owners qualified renters and I would like to help you explore your options in converting your AirBnB, even if temporarily, to a traditional rental. Furthermore, I would like to help you obtain renters whose rental income is at least, if not fully, safeguarded from furloughs, lay-offs, or staffing cut-backs due to COVID-19.
As with any rental transaction, I, as an agent, do not get paid until you do and I am paid out of the down payment or first month’s rent.
Regards,
Michael Elgan
RedTree Realty, Inc.
714-887-6464
