The Emerging Trend: Long-Term Stays in Short-Term Rentals
A notable shift towards extended stays, defined as 28 nights or more, has been observed in the short-term rental industry, accounting for 21% of total nights booked on Airbnb in 2022. As this trend continues to gain traction in 2023, property owners and managers are presented with a prime opportunity to meet this burgeoning demand by offering their rentals for longer stays.
In this article, we delve into how vacation rental hosts can harness the potential of this emerging trend for increased exposure to online travel agents (OTAs).
The Implication of Monthly Stays for Airbnb Strategy
In the post-pandemic world, monthly stays have become an increasingly significant facet of Airbnb strategies for property managers. This is partly due to the surge of the remote working culture and the overall economic climate, which have amplified demand for long-term accommodations.
Regardless of the type of property, hosts stand to gain numerous benefits from offering monthly stays:
Increased Occupancy Rates: By providing extended stay options, hosts can optimize occupancy rates during off-peak seasons. This becomes particularly crucial during escalating rental prices when guests cancel or opt for more budget-friendly options.
Operational Cost Savings: Transitioning to a monthly stay model can decrease maintenance expenses, such as cleaning and concierge services. The need for frequent property cleanings and guest introductions can be considerably reduced.
Moreover, hosts gain exposure to an alternative guest demographic, mainly those seeking accommodations for remote work, a market that has grown significantly since the onset of the COVID-19 pandemic. This could be particularly advantageous for hosts new to Airbnb or those struggling to garner reviews and visibility.
Airbnb's Long-Term Cancellation Policies
According to Airbnb's regulations, hosts can adopt specific cancellation policies tailored for longer stays, namely the "Strict" and "Firm" long-term policies. These policies apply to bookings of 28 days or more and override the standard cancellation policy for these stays. They provide enhanced protection against cancellations while ensuring a more extended booking commitment from guests.
Monthly Payouts: A Perk for Hosts
For long-term reservations, Airbnb offers monthly payouts, significantly reducing the strain and uncertainty linked to managing multiple payments over prolonged periods.
As a property manager, you can avail the opportunity to receive payments even earlier with MistrPM. We individually qualify each host to make you eligible for our Advance Payout, which allows hosts to receive their payment seven days before check-in.
Preparing for Extended Stays on Airbnb
Any property can be listed in the search results for long-term stays on Airbnb, provided it meets the following criteria for Airbnb's 'Monthly Stays' category:
Availability for a minimum of 28 days
A 15% discount on long-stay bookings
Fully equipped kitchen
Wi-Fi availability
Additional amenities, such as a bathroom, bedroom, dedicated workspace, and features like air conditioning, can significantly enhance the guest experience.
You might also like: Is It Worth It? All About Vacation Rental Fees.
Steps to Qualify Your Listings for Airbnb's Longer Stay Program
After determining which of your listings are suitable for the program, you will need to adjust your listings' availability and set a minimum discount of 15%.
If you use MistrPM's channel manager, please follow these steps according to your listing:
Case 1. Seasonal rates exist on your listing:
Edit your listing
Go to Seasonal rates > Edit season > Maximum Stay and adjust to 28 days or more
In the Seasonal rates section, turn on "Allow combination with Longer stay discounts."
Navigate to Discounts > Add longer stay rules and set a minimum of 15% for the '28 nights or more field
Case 2. No Seasonal rates on the listing:
Edit your listing
Go to Basic rates > Maximum Stay and change to 28 days or more
Navigate to Discounts > Add longer stay rules and set a minimum of 15% for the '28 nights or more field
Remember, if your seasonal rates are used with other listings, their availability will also change. Creating a new Seasonal rate for your longer-stay listings may be advisable.
Long-Term Stay Night Limits in Key Cities
If you are hosting in London, Amsterdam, or Paris, it's crucial to know the maximum night limits for renting out properties during the year.
For London, entire home listings on Airbnb are restricted to a maximum of 90 nights per year by default. In Amsterdam, you can only rent out your entire home for a maximum of 30 nights per year. For Paris, the maximum is 120 days annually for primary residences.
Different rules apply to secondary residences and non-residential spaces. It's recommended to consult Airbnb's help center for specific details.
How to Optimize for Long-Term Stays on Airbnb?
When preparing to offer long-term stays, it's crucial to know your target guests and their needs, create a welcoming environment, and meet the prerequisites for Airbnb's longer stay category. Although Airbnb cannot guarantee that a specific listing will appear in the search results for long-term stays, following these steps can significantly enhance your chances of success in this emerging market.
Capitalizing on Airbnb's Extended Stay Opportunities with MistrPM
Understanding and leveraging the increasing trend towards longer stays on Airbnb can undoubtedly provide significant advantages to hosts. Whether it's a boost in occupancy, reduced operational costs, or the potential to tap into new guest segments, the benefits are manifold.
Implementing long-term stay strategies aligns with the evolving patterns in guest behavior. It offers hosts greater security with unique cancellation policies and payment plans designed to cater specifically to extended stays.
As cities worldwide continue to set their guidelines on maximum rental periods, hosts should also know the specific rules applicable to their location. This is crucial in ensuring compliance while maximizing the benefits of offering longer stays.
In conclusion, as the world continues to adapt to a 'new normal,' so too should the strategies employed by vacation rental hosts. MistrPM aims to equip hosts with the necessary tools and guidance to navigate these changes efficiently and effectively, ultimately driving business growth. As you embark on your journey to capitalize on Airbnb's extended stay opportunities, MistrPM is here to support you every step.
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