You likely already know that the coronavirus pandemic has caused massive amounts of uncertainty in many different ways. For instance, the hospitality industry was perhaps hit the hardest as unnecessary travelling was the first thing to go and still currently discouraged in many places worldwide. However, based on recent research, the housing industry has had a long history of doing better than other industries after an economic shock. As global businesses evaluate their return to travel over the next 6-18 months, we’ve provided some insight into the impact that COVID-19 has had on the corporate housing sector thus far.
The Changing Industry
The short-term housing industry was still dramatically affected by the pandemic; however, the long-term damage will have a different appearance. In some cases, hotels and short-term property managers were able to offset some of their losses by providing temporary living arrangements to first responders and other health care professionals. However, unlike hotels, corporate housing landlords typically have smaller staffs, so large cuts didn’t have to be made– allowing them to remain open and running. Hospitality work of any kind remains lower than usual, but as states have begun reopening, corporate housing facilities continue to adapt and conquer the pandemic’s repercussions.
How Property Managers are Handling the Pandemic
While drop-in business for short-term housing industries has plummeted, some properties listed with popular travel sites received small cancellation refunds. However, more often than not, short-term landlords were left to cover the collection costs brought by the pandemic. And the issues become two-fold as they are dealing with a deficit in business while also unlikely of seeing a high-demand of customers as many people continue to work remotely and travel less.
However, not all landlords are struggling. According to AirDNA, a major influx of city residents moved to short-term rentals outside of the city when the pandemic started to pick up as people tried to avoid significant areas with the disease. And for temporary and corporate housing industries opening their doors to those in need, have modified and undergone adequate health procedures for guests to ensure everyone’s safety.
Adapting to a Post COVID-19 World
As travel resumes, it may not come roaring back to life. According to Temporary Accommodations, air travel is expected to see the slowest return, which ultimately affects temporary and corporate housing industries. However, Temporary Accommodations also informs us that “staycations” and short stays at driving destinations are becoming increasingly popular over the past summer of 2020, as residents of heavily populated areas were more likely to travel to rural destinations for short stays. Demand for short-term rentals may continue to rise depending on public health concerns about the coronavirus pandemic. However, even an event as dramatic as this pandemic is unlikely to eliminate the short-term rental market.
Specializing in full-service corporate housing programs, The Hennessey Group provides an innovative solution to short-term housing. We want to ensure that guests receive an excellent standard of accommodations while living temporarily with us. With locations across Texas, New Mexico, and Nevada, we have a solution for you. Call (888) 543-5890 or visit our website today.