Sonder’s Collapse: Lessons Every STR Operator Must Learn

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What happens when one of the largest, most celebrated short-term rental companies collapses overnight?

In this episode of Get Paid For Your Pad, Kaye Putnam (Head of Marketing at Freewyld and Freewyld Foundry) and Eric Moeller (CEO of Freewyld and Freewyld Foundry) break down the shocking downfall of Sonder, once valued at over $2B, operating 9,000 units across 40+ cities, and viewed as the blueprint for scaling an STR brand.

They unpack what really led to Sonder’s bankruptcy, how the rental arbitrage model buckled under massive fixed costs, and why the company’s economics never worked at scale. Whether you operate 5 units or 500, this episode is a masterclass in avoiding the financial, operational, and strategic mistakes that took down one of the industry’s biggest players.

You’ll discover:

• Why rental arbitrage becomes dangerously fragile at scale

• How fixed costs, liabilities, and rapid expansion eroded Sonder’s margins

• Why chasing occupancy instead of profitability led to massive cash burn

• How custom tech and PMS development slowed operations and added complexity

• What operators must learn about single points of failure and platform dependency

• Where the biggest opportunities now lie for STR CEOs after Sonder’s collapse

Eric and Kaye also reveal how the industry reacted behind the scenes, what former employees shared about internal challenges, and why this collapse is creating a sudden wave of opportunity, from talent acquisition to landlord negotiations to premium inventory hitting the market.

💡 Topics Covered:

• Sonder bankruptcy, short-term rental economics, and business model risk

• Rental arbitrage vs. property management models

• Profitability, cash flow discipline, and cost structure analysis

• How operational spread destroys margin in the STR industry

• Lessons for STR CEOs, founders, and operators scaling portfolios

• Identifying and eliminating single points of failure in STR businesses

🔗 Relevant Links:

Learn more about Freewyld Foundry → https://www.freewyldfoundry.com

Follow Eric Moeller → https://www.linkedin.com/in/ericdmoeller/

Follow Kaye Putnam → https://www.linkedin.com/in/kayeputnam/

Follow Freewyld Foundry → https://www.linkedin.com/company/freewyldfoundry

Keywords:

sonder, short-term rentals, rental arbitrage, STR risk, Airbnb business, profitability, hospitality, Freewyld, Freewyld Foundry, real estate investing, STR operations, revenue management, portfolio scaling, hospitality economics, Airbnb host, property management, bankruptcy analysis, growth strategy

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