Early in the pandemic, a bunch of property managers handling multi-family buildings went out of business. Many vacation rental property managers have recently faced a softer reckoning, but an inflection point nonetheless.
Los Angeles-based property manager AvantStay confirmed it laid off “less than 10%” of its staff, or 37 employees, its third round of job cuts in the past 12 months.
“As part of our ongoing reorganization strategy to drive operational efficiency and reduce operational silos, we recently underwent a reorg that affected less than 10% of our workforce,” the company stated in an email to Skift. “This is largely due to our fully proprietary platform and technology efficiencies that we’ve gained over the past six months.”
AvantStay, which seeks to build a vacation rental brand, said it is profitable, adding “these moves will enable us to face future challenges head-on and shape our own path” given the current state of the global economy.
The property management sector has faced a reckoning over the past year after enjoying a surge in demand and average daily rates starting in the back half of 2020.
This was AvantStay’s third round of cuts or reorganizations since June 2022. For example, the company laid off 22% of its staff in November 2022, and tied that move to over-hiring and forecasts that were too bullish.
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Photo credit: Pictured is a property in Charleston, North Carolina that AvantStay managed. The company laid off close to 10% of its staff. Source: AvantStay