Developing business plans for an uncertain future and handling increased cancellation rates presents a new set of challenges—on top of continuing to balance the immediate needs of guests, homeowners and staff. Learn how property managers like you are adapting during these unprecedented times.
How to respond to Covid-19 and mitigate the business impact
We’ve asked property managers and industry experts to share how they’re mitigating the business impacts of Covid-19 and paving a way forwards. We hope their advice will help other property managers to navigate the situation, both now and into the future.
Takeaway: Transition to more flexible policies
Offering this level of flexibility may be different to how you typically operate. As the global situation evolves, you can control and adjust your policies as needed for your business.
Consider adopting a relaxed or moderate cancellation policy
- Relaxed: 100% refund if the reservation is cancelled at least 14 days before arrival date OR 50% refund if the reservation is cancelled at least seven days before arrival date
- Moderate: 100% refund if the reservation is cancelled at least 30 days before arrival date OR 50% refund if the reservation is cancelled at least 14 days before arrival date
Learn more about cancellation policies
Appear in more traveller searches
When looking for properties with flexible cancellation policies, travellers can use search filters to find properties that provide a full refund for cancellations made by a specific date. Travellers can also easily see a property’s cancellation policy on the search results page and property details page, so they can quickly compare properties and select the cancellation policy that’s best for them.
Reduce your cash outflow
With an increase in cancellations and rebookings, it’s important to evaluate your holiday rental business expenses and streamline where you can.
"I recommend you review your business holistically, focusing on all cash outflows. Forget about revenue for now. Start with marketing and payroll expenses as opportunities to reduce cash outflow", advises Ben Edwards. "Conserve as much cash as you can so that you are in a better position to weather the storm."
"We have contacted all of our vendors and creditors to let them know we are directly affected by the virus. Everyone has been very accommodating, including mortgage companies", says Karen Jernigan-Bobe.
Upgrade your cleaning practices
Your housekeeping team always plays a pivotal role in the success of your business, but Covid-19 presents a new and unique challenge. If your community allows you to continue hosting guests, and you’ve made the decision to accept bookings, you’ll need to update your cleaning practices.
Work with suppliers to stock up on products that are most effective in disinfecting surfaces that may be contaminated with Covid-19 and other viruses. Ensure that your housekeeping teams are trained specifically on best practices from the Centers for Disease Control (CDC). As a part of this training, focus on disinfecting hard surfaces, sanitising soft surfaces and deep cleaning high-touch areas such as light switches, remote controls, knobs and door handles.
"It is fair to pass the increased cleaning costs to guests to compensate for the longer cleaning time and extra cleaning products required", suggests Durk Johnson. "You should mention that the property is professionally cleaned on your listings as a way to give guests more confidence to book".
You should also consider increasing turnover time between stays to account for the increased cleaning required and the safety of your operations teams.
"We are not booking any turnarounds to allow the property to sit a few days prior to maintenance and housekeeping entering", says Karen Jernigan-Bobe.
Get more information about housekeeping and cleaning procedures from Durk on VRMA’s Covid-19 resources page.
Take advantage of downtime to reset your holiday rental business
"If you ever wished you had time to work on the business instead of in it, now is the time. We’re using this time to work with owners on more flexible cancellation policies in general, especially for our repeat guests", says Corey Jones.
Despite the disruption, one silver lining is an opportunity for property managers to consider changes to their business that would be difficult to enact under normal circumstances. Making major changes like moving to a seasonal staffing model, completing new software integrations or focusing on adding new inventory could be implemented more easily during a period of low guest demand.
"Try to think of this time as an opportunity to pause and restart/reboot yourself so you will be refreshed and ready to go full steam ahead when the summer kicks into high gear. I have everyone thinking of items that need to be done within their department or on a company-wide level", says Karen Jernigan-Bobe.
Property managers can prepare for the eventual bounceback of traveller demand by improving the quality of their listings.
Listen, be empathetic and do the right thing
In this time of uncertainty, property managers can make a difference in the lives of their teams, their owners and guests. The impact on the holiday rental industry may be out of our control, but we can control the way that we respond to it as a community.
"Our biggest priority is to make sure guests feel comforted at this time with our flexible cancellation policies. It comes at a cost to us, but the peace of mind we can offer is important", says Karen Jernigan-Bobe.
"Use this time to underscore your relationship with your customers. Understand where owners and guests are coming from. Listen to people, and try to do the right thing. It will pay dividends moving forward", says Ben Edwards.
Property manager contributors
- Karen Jernigan-Bobe—Owner, Sunset Properties
- Ben Edwards—PM, consultant, owner, Weatherby Consulting
- Lucy Kawaihalau—Founder, Kauai Vacation Rentals
- Durk Johnson—Executive Director, Vacation Rental Housekeeping Professionals
- Corey Jones—Owner, Lucky Savannah Vacation Rentals
