Impact of Pandemic on AirBnB now and future

Columbus, OH · Member since 2017 · 48 posts · 43 votes

I primarily invest in OH and I have been coming across lot of props that were AirBnB. Either to convert to fulltime rentals or new AirBnBs. But what is the AirBnB market following the pandemic? Some of my friends who are into hospitality are telling me that for next 2 years, there will not be any conferences in Columbus, OH. More or less it is the same situation everywhere. So, Is AirBnB really a good investment now? Pandemic I am sure is going to change "some" things for ever.

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Myka Artis

Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes

Airbnb is a bad investment in my opinion. In March when this pandemic hit and Airbnb literally started canceling reservations which was a wake-up call to Airbnb hosts to become short-term rental operators. If you're looking to hop into the short-term rental space the goal should be to build your own brand and only use Airbnb for what it is, a marketing platform. Use Airbnb guests to build your brand and encourage them to come back and stay with your company. Transitioning to traveling professionals, traveling nurses, and possibly peer space event spaces are all good ways to make a killing in the short term rental space.

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Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
5y
@Sitaram Koppaka Entire industries are quietly developing...buying cheap homes in remote locations for the purpose of Airbnb...southeast Ohio in particular. Business is booming...everybody wants to get out of their house right now...even if they have to stay in a campground tiny-house, lol.
The important thing to note is that we'll get back to some resemblance of normal. Columbus has ramped up oversight and taxation, so if you invest in/around the city, just pay attention to the local ordinances.
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Sitaram Koppaka
OP
Columbus, OH · Member since 2017 · 48 posts · 43 votes
5y
@Brandon Sturgill, Thanks for the reply. I did not think there was that much AirBnB business. Ok, will dig more.
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Myka Artis
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
5y
Airbnb is a bad investment in my opinion. In March when this pandemic hit and Airbnb literally started canceling reservations which was a wake-up call to Airbnb hosts to become short-term rental operators. If you're looking to hop into the short-term rental space the goal should be to build your own brand and only use Airbnb for what it is, a marketing platform. Use Airbnb guests to build your brand and encourage them to come back and stay with your company. Transitioning to traveling professionals, traveling nurses, and possibly peer space event spaces are all good ways to make a killing in the short term rental space.
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Brian G.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Myka Artis STRs have experienced huge growth in 2020 in *drive to vacation markets with an outdoor draw where regulations are favorable* (ie near lakes, oceans, mountains, desert). All other types of STRs have not done well including those in urban areas (ie densely populated), fly to destinations (ie not many are flying) and those that rely on huge events (ie huge crowds) for demand. So, it’s all very market specific which is always true of RE in general and every strategy in particular.
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Myka Artis
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
5y
@Brian G. I 100% agree my STR's in rural Arkansas and hill country TX do better than my units in Houston & Austin.
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Brooke Spaulding
Rental Property Investor · Braintree, VT · Member since 2013 · 35 posts · 13 votes
5y
We have a vacation rental in Vermont and are growing to have more this year. We purchased thinking if we had to switch to year lease tenants it would still be profitable (as well as planned exit strategies if needed). During that in-between time we had one longer guest then had it empty about a month, did repairs, added value and then came back much stronger. People were offering to stay longer term but we held out and it was worth it. Our value has gone up significantly and now am working on a cash out refinance to use the equity into our next property. We are driving distance to major cities and have a nice escape. As mentioned by others I don't think markets near cities without other draws, specifically outdoor activities, are doing nearly as well. Also we only have single family homes, we renovate, design and modernize so it is still a vacation, private with kitchen so you can stay in and cook, yard for activities away from people, etc.
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Sitaram Koppaka
OP
Columbus, OH · Member since 2017 · 48 posts · 43 votes
5y
All, great replies. Thank you for sharing/explaining as I requested. I am in Columbus, OH which is not a vacation spot. I am not in Florida/Maine etc. Most of the BnB was here due to official conferences (Trust me, they have completely stopped) and crowd due to the 6 home games a year. Infact Quest communications in Columbus is a classic example, their leadership was dead against work from home concept. The moment pandemic hit, everyone started WFH, they saw a potential. Their VP saw that they were paying close 3M in utilities across all their buildings. Now, Quest officially made every one WFH mandatory, They are putting all their RE for sale. Hence, unless you are geographically located in a lucrative (outdoor) access place, BnB may not be the choice. Reason I ask is I am getting access to these properties but are very pricey. I can buy and would make sense only if it was BnB. Hence, the ask.
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