Short-term rental platform Lavanda has released a case study illustrating ‘the cold hard truth’ for property managers in the wake of the COVID-19 pandemic. The study is accompanied by a practical ‘survival guide’ to help property managers make the bold decisions required to successfully navigate what is clearly the industry’s greatest challenge.

Lavanda highlights the brutal impact of coronavirus upon the economics of a short-term rental manager operating a 300-unit portfolio. The research reveals that, whilst some very small pockets of demand are still prevailing, new bookings are being secured at significantly lower rates.

The total number of nights booked in April is down by 90% year-on-year, while cancellations as a percentage of bookings have soared by 118% year-on-year. ADRs (average daily rates) have fallen by 30% year-on-year, while total booking revenue for April 2020 is currently down by 84%.

“As the world battles COVID-19, the reality on the ground for short-term rental operators makes grim reading, with many great businesses now facing an existential threat,” Frederik Lerche-Lerchenborg, chief executive of Lavanda, said. He added: “This reality should not be dressed up, however it’s equally important that we remind ourselves that there’s light at the end of this tunnel.”