“The Airbnb collapse is real,” Nick Gerli, CEO of Reventure Consulting, Tweeted on Tuesday. Reventure provides in-depth analysis and advice to homebuyers and investors, and they’ve noticed a massive downward trend in Airbnb revenue. “Revenues are down nearly 50% in cities like Phoenix and Austin.”
The issue reaches far beyond those cities, though – and it’ll likely only continue to get worse. After a boom in Airbnb demand throughout the COVID pandemic, as people searched for nearby ‘staycation’ spots, demand since has cooled significantly.
“Watch out for a wave of forced selling from Airbnb owners later this year in the areas hit hardest by the revenue collapse,” Gerli tweeted.
Several cities have seen significant drops this year compared to 2022:
- Sevierville, Tennesse – revenues have dropped by 47.6%
- San Antonio, Texas – revenues have dropped 43.8%
- Nashville, Tennessee – revenues have dropped 39%
- Denver, Colorado – revenues have dropped 38.6%
- New Orleans, Louisiana – revenues have dropped 37%
- Seattle, Washington – revenues have dropped 35.2%
See the full list and more of Gerli’s analysis of the Airbnb revenue crash in the Twitter thread below:
What does the Airbnb revenue crash mean for real estate agents?
Real estate agents can play a vital role in supporting homeowners during these difficult times. By offering sensitivity, empathy, and practical solutions, agents can help ease the burden of transitioning from short-term rentals to long-term solutions. So, we’re sharing 5 ways real estate agents can capitalize on opportunities and provide assistance while being mindful of the challenges these homeowners are facing.
1. Educate homeowners on market conditions and realistic expectations
During an Airbnb revenue slump, it is crucial for real estate agents to provide homeowners with accurate information about the current market conditions. Sensitivity is key here; empathize with their situation and demonstrate a deep understanding of their concerns. Help them set realistic expectations regarding property value, rental rates, and market demand for long-term rentals. By being transparent and honest, you can build trust and guide homeowners toward making informed decisions.
An easy way to reach homeowners is to create videos for your social media accounts, sharing stats, market trends, and some helpful advice. Right now, many Airbnb owners will be deciding whether they should sell, or make a new long-term plan – by getting in front of their concerns, you can become the agent they turn to should they decide to put their property on the market.
2. Facilitate connections with corporate housing providers
If Airbnb owners decide to keep their homes, exploring alternative revenue streams will become crucial. Real estate agents can connect homeowners with corporate housing providers who often seek furnished rentals for their employees.
By facilitating these connections, agents can help homeowners generate consistent income while waiting to see if the market for Airbnb recovers. Collaborating with relocation companies and local businesses can also open up new opportunities for homeowners looking to rent out their properties on a longer-term basis.
3. Offer property management services for long-term rentals
Some homeowners will decide to transition from Airbnb rentals to long-term leases, and they may require assistance with property management. Real estate agents can leverage their expertise and offer comprehensive property management services, including tenant screening, rent collection, maintenance coordination, and lease agreements.
By taking on these responsibilities, agents can alleviate the burden on homeowners during the Airbnb revenue crash and provide a seamless transition to the long-term rental market.
4. Provide financial guidance and resources specific to the Airbnb revenue crash
As homeowners navigate the challenging transition from short-term rentals to long-term leases, they may require financial guidance. Real estate agents can partner with mortgage brokers, financial advisors, and legal professionals to offer comprehensive support to homeowners. Help them explore options such as refinancing, loan modification, or government assistance programs that can help mitigate financial difficulties. By offering a holistic approach, agents can empower homeowners to make informed decisions about their financial future.
5. Offer assistance with selling properties
In some cases, homeowners may decide that selling their property is the best option, so you can step in and offer expertise in listing and selling these properties. By conducting a comprehensive market analysis and determining an optimal selling price, agents can help homeowners maximize their returns.
Additionally, agents can guide homeowners through the selling process, including staging the property, marketing it to potential buyers, and negotiating offers. By providing support and guidance every step of the way, agents can help homeowners transition out of the Airbnb market smoothly and efficiently.
Real estate agents have an opportunity to support homeowners during an Airbnb revenue slump by providing sensitivity, empathy, and practical solutions. By educating homeowners, offering property management services, facilitating connections with corporate housing providers, and providing financial guidance, agents can help alleviate the stress of transitioning from short-term rentals to long-term leases.
It is essential for real estate professionals to approach this situation with compassion, understanding, and a commitment to helping homeowners regain financial stability.
Want more proven, easy ways to connect with prospects in your area?