With the increasingly fluid and evolving nature of the COVD-19 pandemic, almost overnight, the global tourism economy has been placed in to turmoil.
International tourism travel has effectively been brought to a halt to slow and restrict the ongoing spread of the COVID-19 virus.
As a result, advance accommodation bookings are being cancelled as people come to terms with the fact that they will be unable to travel as planned, with no idea of if and when restrictions will be lifted.
For many property owners reliant on short term letting and AirBnB income, this could place them in a challenging financial position and, therefore, turning them in to longer term rentals may need to be a serious consideration. This could lead to an increase in supply of properties
With the future so uncertain, from both a health and financial perspective, it is a time when people are more likely to place importance on security, stability and protecting family. Whilst we can’t predict what will happen in the coming weeks and months, we expect demand for rental properties to remain as people face potential changes to their circumstances and existing tenants may well be reluctant to move between properties with the uncertainty around the future.
If you have a property that is currently let out as a holiday home, or a short term let, and you would like to have a no-obligation chat about the rental return you might expect from converting it to a long term tenancy, please contact our Business Development Manager – Julian Kett on 03 544 1782 or Julian@bolitho.co.nz