COVID-19 Relief Options for Short-Term Rental Hosts and Property Managers

These are the most difficult times many of us have experienced in the vacation rental world. While none of us could have imagined a time such as now, we must remain optimistic and work together to bridge this gap so we may continue the unprecedented growth of the short-term rental industry.

As members of the vacation rental community, we have received many questions and we are working to bring critical information to you, our clients and fellow short-term rental hosts, to help weather this time and maintain a healthy operating business. We will continue to update this list as we learn more. For now, here are top questions we have encountered for short-term rental hosts in regard to handling the COVID-19 pandemic, specifically loss of business income.

An illustrated row of homes

Is There COVID Relief for Vacation Rentals in the Form of Small Business Loans?

Hosts deemed sole proprietors that report short-term rental income may be eligible for small business loans to cover interest on mortgage payments, rent, and utility bills if their business is impacted by the virus outbreak.

The first option is the Economic Injury Disaster Loan (EIDL) / Loan Advance which can provide an immediate $10,000 Loan Advance for ‘lost rents’ due to COVID-19. The Loan Advance does not need to be repaid. The online application is available now.

The second option is the Paycheck Protection Program (PPP) / Loan Forgiveness. This would be geared more towards Property Managers, to help retain employees or self-employed (Scheduled C) earned income.

To get an idea of the amount you may qualify for, here is a helpful calculator.

It’s also important to note that additional options may be available at the state and local level. These options vary state to state so please seek additional information accordingly.

Is There COVID Relief for Short-Term Rentals in the Form of Unemployment Assistance?

Hosts with family members diagnosed with COVID-19, may be eligible for unemployment assistance if they are self-employed or the sole proprietor of their family. Eligibility varies state by state, so we recommend you do research for your area.

From NY Times article:

What if I have COVID-19 or need to care for a family member who has it? If you’ve received a diagnosis, are experiencing symptoms or are seeking a diagnosis – and you’re unemployed, partly unemployed or cannot work as a result – you will be covered. The same goes if you must care for a member of your family or household who has received diagnosis.

While many communities are still working towards uniform regulation, short-term rentals are seen as businesses and states are willing to offer assistance during these difficult times when cancellations are high and income is low.

Is There COVID Relief for Airbnb Hosts for Cancelations?

Following the $250M initiative to support hosts impacted by cancellations, Airbnb has determined the following guidelines under their Extenuating Circumstances Policy for reservations booked on or before March 14 with check-in between March 14 and May 31.

From Airbnb website:

Reservations for stays and Airbnb Experiences made on or before March 14, 2020, with a check-in date between March 14, 2020 and May 31, 2020, are covered by the policy and may be canceled before check-in. Guests who cancel will have a variety of cancellation and refund options, and hosts can cancel without charge or impact to their Superhost status. Airbnb will either refund, or issue travel credit that includes, all service fees for covered cancellations. In order to cancel under the policy, you will be required to attest to the facts of and/or provide supporting documentation for your extenuating circumstances.The host’s cancellation policy will apply as usual to reservations made after March 14, 2020.

Wrap Up

Again, the team at Proper Insurance prays everyone stays safe and healthy and we hope this helps patch some business income and financial needs in the short term. We are confident this time will pass and we will continue to see extraordinary growth in the short-term rental industry.

Quote Your Short-Term Vacation Rental Today

Interested in a policy to protect you and your business from liability claims? Proper Insurance leads the nation in short-term rental insurance, with over 100,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from vacation rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage. Proper’s policy covers vacation homes, townhouses, condos, duplexes, cabins, cottages, apartments, and more. With expert vacation rental underwriters, we can tailor a policy specific to your short-term rental property.

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.


A child kayaks in the water outside of an Airbnb with his dog in tow.
April 22nd, 2024

Home Insurance for Airbnb Owners: Protection beyond the beam and brick

A man standing in front of Airbnb with tornado of papers
March 29th, 2024

Creating the Ultimate Insurance Stack for Your Short-Term Rental Business

Illustration of friends entering a short-term vacation rental home
February 15th, 2024

Offering Guests a Direct Booking Option: Tips for Increasing Your Property’s Exposure

illustration of short-term rental conference
February 8th, 2024

The Top Short-Term Rental Conferences in 2024 for Owners, Hosts and Property Managers