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The aftershock of the Covid-19 pandemic on the short-term rental market

The aftershock of the Covid-19 pandemic on the short-term rental market

Industry view from SpotHost

Akash Sharda, Chief Executive and Talha Bashir, Operations Director


It goes without saying that 2020 has not been the year any of us expected. The way we live our lives, go to work, see our friends and how often we travel changed entirely, and we found ourselves in a strange new, socially distanced world.

All industries and businesses have felt the impact of Covid-19, but the travel and tourism sector took one of the biggest blows. And after the biggest downturn in travel confidence since 9/11 and the financial crash of 2008, the industry is still struggling. Nations are beginning to emerge from lockdown once more, but the constant changes in restrictions and travel corridor lists are hindering the recovery of the travel industry, and all aspects of the rental market – from hotels to short-term rentals, and accommodation in general – are continuing to be hit, particularly the short-term rental market in Scotland.

Holidays and business travel are the biggest reasons for people renting short-term, and it’s difficult to gauge when, if ever, things will return to pre-Covid normality. Lacking the confidence to travel not just for holidays but for business too, people have changed their behaviour and lifestyles. And, combined with the pandemic, the proposed changes to the regulatory system of short-lets in Scotland represent a perfect storm of restrictive conditions.

Short-term renting is a great way to maximise the income on a property – and doing this means the property should never be left empty. This is where landlords will benefit from new renting models and systems, and one of the leading examples of this is known as a blended yield model.

By being able to offer your property up on a short-, mid- and long-term basis, landlords can ensure it is achieving maximum occupancy and that there are no void periods in the calendar.

How can SpotHost help?

At SpotHost we specialise in the blended yield model by advertising the properties for mid- and long-term lets, while filling any void periods with short lets. This model is tried and tested and has proved a huge success for many of our clients.

However, one of the biggest challenges in 2021 will be to ensure landlords comply with the new set of rules. At SpotHost, we are always ahead of the market and work closely with the Short Term Accommodation Association (STAA) to ensure landlords renting their properties with us stay up-to-date with regulations and make the process of transition completely hassle-free.

We know how important a smooth negotiation of the many obstacles still to come for short lets, and we will both ensure properties will benefit from opportunities in the market and promote, as we always have, responsible hosting.


Flexible lettings through a blended-yield model, to maximise on rental income.

  • Industry View from SpotHost

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