AirBnB, WeWork

[abbby]

These companies and their business models were once heeled as the next big thing, the concept and popularity being so well received. But with the pandemic with no end in sight, don't know what their fate will be?

[PNGMK]

These companies and their business models were once heeled as the next big thing, the concept and popularity being so well received. But with the pandemic with no end in sight, don't know what their fate will be?

Perversely enough I think they will survive (with social distance measures) as the inverse logic says that MANY corps will downsize and move to WAH or WFH or Work at a rented desk model.

[bgd]

The WeWork model will last. Not sure whether WeWork will though. Their cost base is much higher than other competitors because the founder was a middleman in all their property deals.

AirBnB has a bit more of a problem. Many of their listings are gone as people rent or sell their properties to replace the lost income. London, for example, has a lot of former AirBnB properties on the rental market now and prices are much lower.

[abbby]

Will people find working from home more cost efficient since it's been 2 months everyone's home and gotten used to it.

For AirBnB, could homeowner go for long term rents? Won't that be a longer term solution? Unless, there's no demand for long term let's say in UK..

Do AirBnB owner generally get better yields than long term rents (pre-covid19)?

[bgd]

Will people find working from home more cost efficient since it's been 2 months everyone's home and gotten used to it.

Suits some. I prefer it. I have little regional responsibility so all my interactions are via email or conference. Don't need to go near the office.

For AirBnB, could homeowner go for long term rents? Won't that be a longer term solution? Unless, there's no demand for long term let's say in UK..

Yes, that's already happening in London and I would assume other places as well. If you have a mortgage and suddenly your income stream has gone then long term rental is probably the only option, other than sale. Rents have dropped due to increased availability so the return will be less, assuming you can rent it at all.

The upside for renters is more properties available, for less and the quality is better.

Do AirBnB owner generally get better yields than long term rents (pre-covid19)?

I think so. I guess it depends where you are based. Returns would be pretty good in the tourist hot spots. The other advantage is that the property is available for your use when not occupied. A lot of people use AirBnB to fund holiday homes. There are some big players who have thousands of properties rented via AirBnB, their business model has taken a hammering.