All products, services, or links mentioned on my website are for products and services that I have personally used and/or recommend. Some of the links are affiliate links. This means if you click on an affiliate link and purchase an item, I may receive an affiliate commission at no extra cost to you. All opinions remain my own.
The loss of rental revenue during these uncertain times will quickly dissipate reserves. Unfortunately, some owners do not carry a reserve account for their vacation rental business. And even those who do may not have enough to get through these unprecedented times.
In order to get through the next few months, vacation rental property owners are looking for ways to cut down on expenses. Even saving a few hundred dollars per month can make the difference of getting into a foreclosure situation.
This article provides some ways to cut costs during COVID-19 and also addresses some extra safety precautions during this time of unexpected vacancy.
The Federal Government has made unprecedented strides in helping small businesses get through the economic disaster caused by the COVID-19 pandemic.
As you know, the travel industry has been hit hard. Vacation rental owners have been left with continued bills to pay and little, if any, revenue.
The U.S. Small Business Administration’s Economic Injury Disaster Loan Program has streamlined the process for applying for financial assistance.
Find out eligibility guidelines here:
SBA Disaster Loan Assistance Application or call the SBA Customer Service Center at 1-800-659-2955.
Since mortgages tend to be one of the largest expenses for vacation rental owners, loan forbearance seems like a logical way to cut costs during COVID-19.
Loan forbearance is a temporary postponement of the loan payments. For owners who are facing a possible foreclosure scenario, loan forbearance is certainly worth exploring.
Some lenders are offering loan forbearance whereby mortgage payments are not due for a few months. The payments are still owed, but the lender adds the payments to the end of the mortgage loan.
There are stipulations for qualifying for loan forbearance, including providing proof of financial hardship. Your lender can provide you with a list of the requirements.
CAUTION: Some lenders defer loan payments for a few months, and then the FULL amount of the deferred payments are immediately due at that time. Be sure you understand the terms of your lender’s loan forbearance. In some instances, if the full payment is not made at the end of the deferment period, the borrower can be at risk for foreclosure.
Interest rates have dropped. It is a good time to consider refinancing mortgages with higher interest rates. A refinance with lower interest rates may save thousands of dollars over the life of the loan.
Lending companies are reporting a sharp increase in refinancing, which is causing a backlog in applications.
Before settling on a refinancing lender, check around for the best rates. Ask about the application process. Also, keep in mind that closing costs can be expensive. For some, the closing costs may sharply eat into the rate savings.
Busy rental schedules make it difficult to accomplish maintenance issues and remodeling projects. With several weeks now open, using this time to get larger projects completed makes sense.
Owners can cut costs during COVID-19 by having maintenance and remodeling projects completed while the property is empty. Otherwise, these projects will reduce revenue further when scheduled after reservations pick up again.
Download this Routine Maintenance Checklist – Keep your 5 Star Reviews
For more ideas, read 6 Ways to Use COVID-19 to Improve Vacation Rental Operations.
Aside from mortgage payments, utilities are the highest expenditure for vacation rental properties. Any decrease in utility expenses is money in your pocket.
Shelter-in-place guidelines during COVID-19 may be in place for several weeks. It’s likely that vacation rental properties will be vacant for quite some time. In order to keep properties safe and cut costs during COVID-19, consider taking energy-saving steps.
Unoccupied vacation rental properties are vulnerable during the COVID-19 pandemic. Break-ins, squatters, and property destruction are threats to consider.
There are some important steps you can take to avoid security risks until the vacation rental industry is back to normal.
For more COVID-19 Vacation Rental Tips, check out this article: COVID-19 Coronavirus Tips for Vacation Rentals
You’ll learn unique marketing strategies for social media that will generate more revenue for your business.
Social Media Marketing Bootcamp is a self-paced, 5-Part course designed exclusively for vacation rental owners. The content will be specific to the vacation rental industry, and you’ll have access to exclusive content, worksheets, and questions/answers as you move through the course.
Learn more about how to effectively market your vacation rental on social media, in my Facebook & Instagram Course Exclusively for Vacation Rental Hosts.
Here are some of the topics included in the Social Media Marketing Bootcamp Course:
Take the quiz to find out how the Social Media Marketing Bootcamp course will help your vacation rental business.
After taking the quiz, you’ll see a personalized report explaining whether you’re a good candidate for the course.
You don’t want to miss any of my weekly vacation rental management and marketing tips! You’ll also get my FREE Download – 9 Steps to Preparing Your Vacation Rental Business to #BookDirect!
Would you like to take Direct Bookings for your vacation rental, but you don’t know where to start? Evaluate where you are and what steps you need to take to gain back control of your vacation rental business. It’s not as hard as you might think.
Learn what Trendy Hospitality is all about. And learn more about me and why I have such a passion for vacation rental management and marketing.
I would jump for joy if you’d share my blog posts on your favorite social media platforms, including Facebook groups ! ↓
All products, services or links mentioned on my website are for products and services that I have personally used. Some of the links are affiliate links. This means if you click on an affiliate link and purchase an item, I may receive an affiliate commission at no extra cost to you. All opinions remain my own.
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