As a consequence of the health crisis, the decline in tourism encourages investors to redirect goods intended for short stays towards traditional rental. This phenomenon calls into question the profitability of short-term rentals, which are attractive but subject to many parameters.
A stop to short-term rental
With the fall in mortgage rates and the growth of platforms such as Airbnb or Abritel, it was tempting for individuals wishing to invest in stone to favor short-term rentals over the more traditional lease formula. Vacation rental was usually reserved for resorts and tourist destinations, but the rise of short stays – breaks of a weekend or less than a week to visit a city or a region – helped to change the situation, helped by the RTTs who have changed the behavior of individuals for their trips. In Paris and in the heart of large metropolitan areas, the trend towards short-term rentals has therefore transformed the housing supply by competing with hotels and reducing the property available for “locals” looking for rental at the year. The law has admittedly limited the number of overnight stays 120 days a year for “Airbnb investors”, it was ultimately the Covid-19 that encouraged them to review their copy.
Long duration = safety
An RMC-BFM TV survey reveals that the advertisements for rental properties have increased significantly in recent months, while that of accommodation available on Airbnb has declined. In terms of studios, for example, their number has doubled in Grenoble and increased by 50% in Paris on SeLoger! The cause and effect link is obvious, and the health crisis is at the root of it. With almost hermetic borders and tourists scalded by the context of the virus’ circulation, owners prefer to fall back on traditional rental rather than persist in offering a property for short-term rental due to lack of demand. They thus forgo greater potential income, as short-term rentals make it possible to maximize income per night. But a standard three-year lease ensures them regular rental income … A situation that has not finished calling into question rental investment projects given the lack of visibility on the evolution of the Covid-19 crisis .