COVID-19: Impact on Short-Term Rentals (Webcast Summary)

To support the multifamily community through the current COVID-19 crisis, we’ve launched a series of discussions centered around its impact on the rental housing industry with the latest data, expert insights and actionable measures stakeholders can take to minimize fallout. You can register for upcoming webcasts and watch previous episodes on demand at the COVID-19: Resource Center.  This is a condensed summary from the webcast, COVID-19: Impact on Short-Term Rentals, broadcast on March 31, with RealPage VP and Deputy Chief Economist Jay Parsons, Kigo General Manager Daniel Bowen, with special guests industry veterans Alex Diaz, CEO of My Puerto Vallarta Rentals; Heather Bayer, Co-Founder of The Vacation Rental Formula; and Tom Powers, Owner of Folly Time Beach Rentals and Abodeca. GLOBAL & NATIONAL SNAPSHOT: SHORT-TERM RENTAL TRENDS  Economic fallout from the health crisis has now extended into most areas of the global economy. More and more cities around the world are adopting shelter-in-place ordinances and banning guests from short-term rental properties with brutal impact. According to industry tracker Key Data, bookings across North America and Europe almost completely cratered compared to the same time last year. Cancellations have escalated through March and April, and cancellation rates are above 2019 levels and expected to stretch into June. Source: Key Data Industry tracker Transparent shows that in February, global short-term rental occupancy rates in short-term rentals were comparable to 2019 levels everywhere (except China)—however the projection is that global occupancy will continue to freefall for the remainder of the calendar year. Source: Transparent Industry veterans we interviewed speculated that the fly-in market for the vacation rental industry may not fully recover for 12-18 months due to the economic fallout resulting from COVID-19. Others expect the earliest signs of recovery to appear around November....