What an economic crisis teaches us about service industry businesses like accommodation rental

Normal business cycles invariably play out in a manner which allows us to predict with certainty that at some point in time there will be a down-turn, a crisis. We just don’t know when the down-turn is going to take effect, such as when a global health pandemic breaks-out and perhaps makes for a catalyst for the crisis.

However, every single one of these crises presents us with some valuable lessons to be learned about service industry business like accommodation rental. By extension, these lessons apply to the other side of that fence as well, which that of property investment. So what are these lessons?

Essential services cater to basic needs

During something like a lockdown, as part of the measures to offset the effects of something like a global health pandemic, certain businesses in certain industries are granted licence to continue operating. These are referred to as businesses and industries making up a part of our essential services, for which accommodation is party. The takeaway there is that essential services such as shelter cater to basic needs.

Knowledge thereof is important to regulating the market, ensuring there are affordable options for the likes of long-term accommodation, even when demand is high, but access to funds may be limited.

There will always be a demand for service industry enterprise

Since essential services are those which cater to basic needs like housing, it becomes clear that there will always be a demand for the service industry. The demand will linger beyond those periods when there is a greater need and urgency for the fulfilment of these essential services, an indication that it’s perhaps better to get involved in these markets when the good times are rolling. Ultimately property prices are low during a downturn, which has a knock-on effect on rent and other forms of accommodation, but this makes for what appears to be a great opportunity when there’s generally not much money circulating in the economy.

So you can’t really buy during the downturn, because there’s not much money to do so and you also can’t really take full advantage of the lower rental prices that come with down-turns and industry elements like the low-travel season.

There’s always a good deal to be had

That said though, there’s always a great deal to be had by those who take the time to seek it out. If a specific festival season has you heading to Bristol, for instance, accommodation options in nearby suburbs like Clifton offer great deals as a standard part of their service, throughout the year.

A need to focus on what’s important

An economic down-turn as observed through the eyes of the key players in the services industry ultimately encourages us to focus on what’s important in life. We are encouraged to make sure that whatever happens, we need to at the very least take care of the bare basics of life. As far as these bare basics go, perhaps only food takes precedence over shelter, but none of these and other essentials of life can be effectively catered to in isolation.

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