Is the short term rental market decimated.

[Robin4]

Here in Australia we are seeing an immediate effect to the direction Airbnb have taken in dealing with the COVID-19 pandemic.

The rental price of long term rentals is plummeting as masses of STR properties are coming onto the LTR rental market. 

I don't know if overseas searches can open this link but, it gives an indication of what is happening here in Oz.

https://www.domain.com.au/news/australias-rising-rental-market-short-lived-as-coronavirus-affects-pr...

Domain specifically mentions, the collapse of the Airbnb market is driving properties into the LTR  rental market leading to a significant fall in rental asking rates.

Airbnb are on a particularly slippery slope here! Their attitude to short term gain is going to lead them to long term pain as masses of their hosts desert them for a more stable source of income.

I would hope it is not too late for Airbnb, but I fear it is, you can only bite the hand that feeds you for so long.

Cheers......Rob   

[Helen427]

@Fred13 

The 🏝 along with 🛫🛬✈🛩🏄🚣🏊 🤽🌊🐠 🦑🐳 🦐🐡🐋🐟🐙🐚 🦀🦅🦆🐓 🦃🦉🐣🐧🐦🐥🐥🕊 🦇🕷 are in my phone icons.

 I've no idea where to find them on computer, although I'm sure they will be somewhere @Robin4 will know, I'm sure...

Windy & wet on our North Island, New Zealand..sea water was a bit rugged yesterday & lots were out surfing on Takapuna Beach.

[Robin4]

@Helen427 

On the computer....here they are Helen, no sweat! ;-))

Sorry......couldn't resist that one!

Cheers.......Rob

[Helen427]

@Fred13

as expected @Robin4 has popped up.

Have fun looking up your island icons... @Fred13, You might be able to create an island for your listing through Microsoft Paint..get those creative juices flowing whilst you have some spare time...

[Fred13]

Thank you....!

[Ocean50]

@Robin4 

I don't know Rob, but I don't think you should trust any article written by this domain website or by Sue Williams. Sue Williams was the one public that rumor spreading around in Sydney 2-3 weeks ago: Airbnb declared ‘illegal’ as NSW government cracks down on holidaymakers By Sue Williams. Domain has to remove that article after we find out it is a completely bs making up by this reporter for click and view.

[Fred13]

One thing she mentioned which pleasantly surprised me because few media people would be aware of this timeline concept or understand it - there is yet the delay arrival of new rental places under construction to take effect that started as a direct consequence of the very recent 'STR Boom'. 

[Cormac0]

@Robin4 

So it would appear that all the tenants association were correct that STR was effecting the rental price for property, it’s the same in Krakow, obviously STR apartment are going on the long term rental market for ridiculously low rental rates, huge TV and every amenities possible practically in the main square, for less then $1000 per month, when they were earning more per week from tourists.

I have a friend who went to look at one of the aforementioned apartments with a promise of a one to two year lease only to be told after some discussion, he could only get a six month lease, bate and switch is alive and kicking, my friend who is no poet told the landlord in no uncertain term to F**k *ff for wasting his time.

[Fred13]

You bring up an interesting point, the 'tweener' type of renter; 6 month is LTR (but only off-season) and  6 month is STR (tourist season). Slick.

[Robin4]

@Cormac0 

Mate that is interesting to hear....and it is logical!

STR hosts will seek the safe haven of a monthly rent cheque until it looks like they will be able to attract short term rentals again! Fantastic offers will abound, As you say, bate and switch!

From what I am seeing though, many hosts are not just looking at a long term rental scenario, they are either totally moving to other STR platforms or adding other platforms to their hosting options. They are spreading their hosting options around.

It's that old story, if you aren't happy with what you have got you will search for something else!

I don't want to see Airbnb become a bottom feeder because their reputation sucks and hosts and guests with any integrity wont use them! But there is a lot of that sentiment at the moment.

My main concern is the number of guests who are currently being duded with the refund process.

Hundreds of emails per day are flooding in just like this one......

The number of pissed off guests is staggering, possibly even more than hosts!

Airbnb do have to rethink their strategy here, they are rapidly gaining a really unsavoury reputation. 

On the other side, hosts and guests are going to remember this, and I feel the market is going to starve for an Airbnb.......... that isn't Airbnb!

Cheers......Rob

[Fred13]

@Robin4 "The number of pissed off guests is staggering, possibly even more than hosts!" Is this the reality or the impression we are getting from the what we are reading here? Millions of guest have been treated princely but are we into the stage of some aggressive guests that are gaming the system?

Granted Airbnb shocked their hosts over the coals with their enthusiastic Superman-in-the-booth'Welcome to Cancel' and "We are Looking Out For You Guests' recent type of encouragements, but refunding the guests during March-through June 1st appears to be an understandable move.

Yes, taking such a guest-centric mentality much further may indeed prove dangerous, but they are not exactly doing that, but now playing the guilt-on-the-host angle. Of course, every guest will claim because they been impacted by Covid-19 they should get a full refund into the coming months also, but so have the hosts, since both entities (guests & hosts) happen to be members of exactly the same economy.

But the question remains - how exactly does Airbnb keep both the guests and the hosts happy simultaneously, since these are two entities are countervailing forces, and mutually exclusive; if you give to one Airbnb is compelled to take from the other; unless Airbnb sinks further by borrowing more to keep everyone happy by burrowing even more at a 10%+ usury rate if they can, or  start to print their own counterfeit money in their basement?

Tricky times indeed with many complex issues and few everyone-happy solutions. 

[Helen427]

@Cormac0 @Fred13 @Robin4

@Ocean50 @Melodie-And-John0 

 It's standard in the Residential Tenancy Act lease agreement in most countries to start off as a 6 month Fixed Term Tenancy & then a periodic tenancy indefinitely thereafter until either party decides to terminate the agreement for whatever reason.

It's rare to ever see a fixed term tenancy for over 12 months &  in situations where it is it tends to be because the owner has a 12 month work contract somewhere else in the country or world.

It would pay for your to be mindful of these legalities @Cormac0.

Check out local legislation and look at the templates & legislation online which is usually readily available, including in ones  home country.

[Sean433]

Airbnb is in a much much better situation than hotels. Airbnb has no real estate assets except for the buildings they bought not too long ago. Hotel chains have several buildings as assets which are now liabilities since they are draining money...

Thus, airbnb is in a much stronger position than hotels. Also, the hosts that hopped over to LTR will come back when STR is strong again since they are already furnished. As much as some of you hate airbnb, they will be doing great in a couple years due to their business model of not holding assets. Hosts hold the assets and therefore us hosts take more risk then airbnb. Pretty smart of them right?

[Wendy1071]

https://www.bloomberg.com/news/features/2020-04-22/airbnb-s-future-depends-on-a-post-pandemic-travel...

[Fred13]

On a positive note, lately I been getting a surprising number of inquires and even bookings. Are people needing to travel again, already? No clue, but encouraging.

[Helen427]

@Robin4

@Wendy1071 @Sean1 

@Cormac0 @Fred13 

I  think you will find there's plenty of people itching to travel again, locally & internationally. Just like birds they like to travel & explore.

With it coming out in the open about Professor Neil Fergusson, Imperial College London, who's research practices created & contributed to this world wide lockdown & has since handed in his resignation, that his partner Antonia Staat, ( she's in an open marriage with her husband) is an Environmental Activist for Climate Change there's likely to be serious questions asked & wider fallouts.

New Zealand's own Professor Shaun Hendy & associates who did the modelling here is of the same ilk with Climate Change, as is Dr Ashley Bloomfield who is the mouth piece as Director of Health at Ministry of Health for Covid19.

There's likely to be others out there who are behind Climate Change activism pushing to their ideas into the wider community.

They have all their Scientific Research Papers plastered all over the internet so it's not hard to see the bigger picture & pushing boundaries including stopping / restricting air travel...and trying to screw up human relationships with senseless 2metre rules...

Thankfully we live in a small country where the media got wind of Hendy & associates #NoFly project, as well as Covid19 methodology & projections neither of which hasn't gone down well with the people of NZ.

There's only so much rubbish people can tolerate thrown into their lives before revolt sets in.

I personally don't think whatever Covid19 is will make much difference to people travelling internationally.

The one really positive thing about people working from home means when people are out walking they acknowledge others & talk the good ole "Bush Telegraph" way & spurs others into action to talk to others which results in action.

Loved ScoMo's (Australian PM Scot Morrison) dig at our PM Jacinda Ardern this week. She said she's a "Perfectionist" & he said something along the lines of "No one's perfect"...

 One's got more common sense how a country functions than the other...The realty is, no country can function without another.

 Australian politicians will have more clout to ensure more borders are open than just between Australia & NZ.

They love places like Bali.

Opening up places between Australia & Asia & European countries opening there borders will see International travel happen before we know it.

 From what I understand, Australia plan to have international travel back in time for July school holidays...

NZ has Domestic travel by aeroplanes functioning next week.

International air lines are still operating between NZ & other countries throughout lockdown.

Customs & Police arrested a couple of Bozzo's trying to bring methamphetamine into NZ in their suitcases this week...