To give up air bnb or not due to coronavirus covid19

[Terri154]

Hi, just looking to get some other host's thoughts on this as I am going around in circles.  I am in the UK and currently wondering if I should throw in the towel now or if this is being too hasty? What are other hosts thoughts?  Every month since the pandemic started in March  its more money down the drain with expenditure far outweighing income.  Just not sure if I should cut my losses now.

[Mike-And-Jane0]

@Terri154 

I think it depends on your situation. If you have a mortgage to pay then it might be worth selling up but then this will take time and by then, of course, rentals might be back.

If you rent the property and then Airbnb it it could be easier to get out quick

[Luana130]

It really depends on your situation. Do you rent or do you own?

[Anonymous]

@Terri154  It's quite concerning that you have expenditures you can't recoup involved here. If your business fully is dependent on "normal" tourism, your best bet is to get out of that as quickly as possible; it isn't coming back this year. Edinburgh is not going to be flooded with international visitors this summer, the Festival is cancelled, most flights into town for the next months won't be running, and even when local restrictions ease off, it will be a long time before densely populated European cities become destinations on anything resembling the scale they were pre-Covid. You can consider this side of your business to be in an indefinite coma.

There is still the option of shifting into long-term rentals, and this is probably your best bet of getting back on your feet financially. I wouldn't personally recommend Airbnb as a long-term letting service - I think for these you're better off having the ability to charge and control a real deposit, conduct background/credit checks, and collect more upfront payment as a security. Also, Airbnb does not provide a service that's worth the huge amount of fees that long-term guests pay. But it's my understanding that letting agents in the UK are quite expensive too, so you'll have to weigh the costs and benefits accordingly.

If you don't own the property, by all means, get out of that contract.

[Helen3]

Depends on your circumstances @Terri154 .

There are options for you to continue to do STRs by directly contacting local NHS Trusts and services to host key workers for payment. Or you could have changed your listing to a long term rental and let it out for six months.

It's difficult for hosts such as yourself who rely on the STR market as it is so volatile and in the UK hosts have been struggling for a while as more and more major cities and tourist areas become saturated.

Perhaps LTRs market would be safer for you until the market stablises. 

[Helen350]

@Terri154  Just read your listing... Looks a great place for a junior doctor on their 4 month rotational jobs post-qualifying..... And when the tourist market starts up again, you know a 4 month-er will be leaving, so not long till you can host tourists again! (Trouble is, the docs' rotations start August, December & April, so you've just missed the early April starters.... That's the case in England, I don't know if Scotland is the same...)

I would be looking at longer term rental in your position, preferably to professional people. Are you aware of the 'Spare Room' website? Good for letting furnished properties, especially if the landlord pays the bills and the tenant  pays an 'all found' price. The site contains lots of legal advice & help in letting/renting, even if you don't end up advertising thru them. And it's free! (Using the basic service.) Needn't cost you a penny!

Or, you could get your details on sites/lists for hospital staff/key workers. I'm on one with 'Cumbria Tourism' - one enquiry, no follow up. Local hospitals may have their own lists....

Had you thought of offering key worker accommodation thru Airbnb? You would be eligible as your place is not shared.

[Graeme48]

If your property is registered for business rates, it qualifies for either £10k or £25k grants from the Scottish Parliament. If it’s not registered for business rates, they have just announced  grants of up to £25k for small and micro creative, tourism and hospitality companies, which might be worth a try. I anticipate there will be an increase in staycations, over the months to come, so your flat looks well placed for the U.K. city break market. How big that market will be, is any bodies guess. In terms of air bnb, my personal opinion is that they are not a company I wish to continue doing business with. We all know how they have treated hosts and continue to do so, with policy changes every other week. I am just about to cancel all my bookings with them, for the rest of the year and take my chances that guests, who can still travel, will book direct or through another agent. That way guests are getting their money returned and they are back in control of their travel arrangements and I am back in control of my business.

[David3267]

Brave! Good luck

[Gordon0]

Whatever you do, don't hang around, @Terri154. I suspect the ordinarily Airbnb-saturated Edinburgh market will move to more traditional lets, pretty much immediately. 

[Terri154]

Thank you so much for your replies, everyone seems to be of the same opinion as me, the new 24 check in window will also lower income once things do start up again as a lot of my guests are 1 night stays.  Not sure if their new cleaning protocol will be a permanent measure or if it is temporary until this is all over?