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The COVID-19 pandemic changed many things, and the vacation rental industry felt it too. You may have seen differences in how vacation homes are managed, booked, and cleaned. The pandemic didn’t just change daily routines—it changed the whole vacation rental scene. Yes!

If you own or manage a vacation rental, it’s important to know these changes. This knowledge can help you do well in a world that is now more competitive than ever. So, how has COVID-19 changed how vacation rentals are managed?

Let’s explore!

How COVID-19 Has Changed Vacation Rental Management

When COVID-19 started in early 2020, people started to avoid traveling internationally. People stopped making plans, flights were canceled, and vacation rentals lost many reservations overnight.

For many people, general health, safety, and travel limitations left them unable to plan any sort of trip. However, the vacation rental market reveals that it shrank by approximately 40% in 2020.

Fast forward to today, and things are not what they used to be. Although covid affected the market for some time and sales were slightly decreased, it was a turning point in the history of consumer behavior that managers of vacation rentals are still adapting to.

Let’s look at some of the major changes that have emerged in vacation rental management.

1. Enhanced Cleaning Protocols

Before COVID-19, cleaning a vacation rental meant a quick sweep and fresh linens. Now, guests expect their places to be very clean. If they don’t see this, they may leave. Fast turnarounds are no longer enough.

Today, vacation rentals need strict cleaning routines to meet guests’ high standards. The good news is that when you clean well, your guests will trust you more.

In 2021, Airbnb introduced the Enhanced Cleaning Protocol. Over 1.5 million hosts joined this program. It’s now a must-have. Guests want to see clear signs that a place is clean. They look for tidy spaces, fresh air, and items they often touch.

What Should You Do?

If you manage a rental, keeping it spotless is very important. Hire a reliable cleaning company and use EPA-approved chemicals. Also, let your guests know about these cleaning measures. Building trust is key in a world changed by COVID-19.

2. Shift Toward Longer Stays

COVID-19 made travelers rethink the idea of a “vacation.” With remote work now common, people discovered they could work from anywhere. This change turned vacation rentals into temporary home offices.

This led to a surge in long-term stays—with the average length of stay increasing by 58% on platforms like Airbnb.

What should you do?

If you’re still marketing your property for weekend getaways, it’s time to pivot. Highlight features that cater to remote workers: fast Wi-Fi, a comfortable workspace, and extended stay discounts. People are willing to pay more if your rental can serve as both a home and an office.

3. Contactless Check-Ins and Guest Interaction

Do you remember when you met guests in person, handed over keys, and gave them a tour? COVID-19 changed all that. And now, guests feel comfortable with contactless check-ins, while technology helps to make it happen. Basic forms of door locking systems have been replaced with keyless entry and smart locks, and home automation is now common.

What should you do?

Invest in keyless entry systems. Guests will love the freedom to arrive whenever they want, and you’ll avoid face-to-face contact. Make the check-in process simple with clear instructions sent via email or messaging apps.

4.  Flexible Booking Policies

The pandemic taught travelers one thing: plans can change overnight. Therefore, individuals are now choosing accommodation with a policy of easy cancellation. Indeed, 77% of the travelers stated that they are less likely to rent a vacation property that has strict cancellation policies.

What should you do?

If your policy is too rigid, you’re missing out. Consider offering flexible or refundable options. This can help you stand out from competitors. Guests will feel more at ease booking with you, knowing they won’t lose money if plans change at the last minute.

5. Health & Safety Messaging

Guests aren’t just assuming your property is safe—they need proof. Properties now promote their health and safety measures front and center. It’s not enough to be clean—you need to talk about being clean.

What should you do?

Make sure your listing shows your cleaning steps, contactless check-in, and any health measures you have put in place. Be transparent about how you’re keeping guests safe—this will help you stand out in a crowded market.

6. Local Travel Is Trending

When international borders closed and flights got canceled, people turned to local destinations. Staycations became the new norm, and even with travel restrictions easing, this trend hasn’t gone away. More travelers are opting for nearby escapes rather than long-haul flights.

What should you do?

If you haven’t already, start marketing your property to local travelers. Emphasize the benefits of a staycation—like escaping without the hassle of airports. Make your rental the perfect local retreat for those looking for a change of scenery.

7. Pricing Strategies

COVID-19 shook up pricing in the vacation rental industry. Many property managers lowered their rates during the pandemic to get more bookings.

Well, now that the demand is slowly returninag, there is a level playing field between being competitive and good profits.

What should you do?

Be responsive to local demand and price accordingly. Always use dynamic pricing tools. They will adjust your rates automatically. They can even change prices depending on market trends, such as guests and competitors.

You can also offer last-minute deals or discounts for longer stays to help fill gaps in your booking calendar.

8. Diversification 

Prior to the COVID-19 pandemic, the majority of managers of VRs were only targeting short-term accommodations. However, when the travel industry was shrinking, property owners had to look for more innovative ways. 

Most transitioned to mid or long-term rentals, making their properties available for workers who had been evicted, those in quarantine or those who needed temporary housing.

In the pre COVID-19 world, most managers of vacation rental properties only planned for short term stays. However, when travelling reduced significantly, property owners needed to come up with new concepts.

That is why many began to offer mid-term and long-term rentals. They leased their properties to workers who wanted homes, people under quarantine, or anyone who wanted a temporary home.

What should you do?

Do not place all your eggs in one basket. you can try to introduce different types of rentals. It could be weekend trips or month long vacations. This flexibility may come in handy when dealing with future disturbances.

9. Technology-Driven Operations

During the pandemic, businesses quickly adopted new technology. They used automated booking systems and AI to improve guest communication. Property managers who use technology could make their work easier and save money while keeping guests happy.

What should you do?

If you’re not using tech tools, now’s the time to start. Automate wherever possible—whether it’s guest messaging, pricing adjustments, or maintenance scheduling. The more efficient your operations, the more time you’ll have to focus on giving guests an unforgettable experience.

10. Regulations & Compliance

The rise in vacation rentals has caught the attention of regulators. Because of COVID-19, many cities created new rules for short-term rentals. These rules include new licenses, zoning laws, and sometimes even taxes that affect neighborhoods, homes, and buildings.

What should you do?

Always pay attention to local laws. You don’t want to face fines or have your business shut down for not following new rules. It might help to talk to a lawyer to make sure you stay on the right side of the law.

Last Words

The COVID-19 pandemic transformed the ways that vacation rentals are operated. All these changes will remain for the long term.

Three keys to renovating your vacation rental include cleaning it up better, incorporating new technology, and changing price. Flexibility and actions would be the things demanded in this new world. And that is what will guarantee success.

So are you ready to boost vacation rental income with COVID-19?

In the fast pace of today’s world, you may not be able to manage your rentals as effectively as before, but we can. Call us now!