Like it or not, short-term rentals are already happening in your building
As an owner/operator of multiple build-to-rent buildings in London, your primary goal is long-term rentals.
Makes perfect sense.
But before you disregard the opportunity of allowing short-term rentals in your building, bear this in mind: either you like it or not, short-term rentals are probably already happening in your building.
And how can this not be happening? Nowadays, we are so used to sharing our rides with Uber, houses courtesy of Airbnb, behavior, moods and, well, life, thanks to shared economy platforms.
At first glance, the demand for short-lets appears to come from tourists looking to live the life of locals, but the spectrum is much broader. Did you know that 78 percent of millennials want the freedom to list their units on Airbnb short-term in order to make extra money and travel? Not to mention the demand from relocating: corporate tenants; people researching an area before committing to buying; contract workers looking for accommodation; and homeowners looking for alternative housing while work is being done to their property.
The popularity of the sharing economy is rising and opens a large opportunity for institutional landlords to take advantage of the new economic paradigm and stay compliant.
As an owner of a BTR building, you are naturally looking to occupy it with long-term residents. However, while you do so, you might be facing two problems – long “void” periods with empty apartments (in between long-term tenancies), and existing residents short-letting their apartments without your knowing. You lose money in both cases.
But it doesn’t have to be this way.
If you allow short-term rentals in your building, you open an additional stream of revenue that directly contributes to your bottom line. You also have a real chance to convert those short-term renters into long-term residents. Furthermore, you offer your existing residents flexibility, a chance to recoup some of their rent money, and most importantly, you give them a reason to want to extend their contracts with you. Many tenants are willing to take on a higher priced lease if they know that they can recoup some of their money through short-term rentals.
Yes, whether you like it or not, short-rentals are most probably already happening in your building. It’s just that it’s not compliant.
By making the process official, you not only make more money, but you also control the process. Today, the intersection of the sharing economy with technology allows proptech companies like STAYKEEPERS to offer solutions that help you stay compliant and grant you visibility over the process. This way you can set and follow rules, monitor occupancy, improve security by checking guests’ backgrounds and diminish liability concerns. By controlling the process, you make sure everything is aligned with local, or national regulation.
As an institutional investor, you want everything to run smoothly in your built-to-rent property. If you allow short-term stays in your building, peace of mind would come from the control you gain once you make the letting process official.
Finally, you allay your concerns by trusting a specialised company (e.g. STAYKEEPERS) to manage the entire process for you. By providing an end-to-end solution, such companies address your exact needs and save you much precious time. Such collaboration does not only introduce a newfound revenue stream, but it replaces traditional processes to increase your operational and financial efficiency.