Traditionally institutional landlords regard the short-term rental industry as somewhat opaque and ambiguous. To their credit, the reputation of many providers in the sector hasn’t been exactly stellar. One just has to look at some of the headlines appearing in the newspapers about Airbnb hacked being accounts, out of control parties taking place in building premises to understand the skepticism.
That being said, times have changed, industry has matured and there are established players in the market with proven track records. Given the macroeconomic outlook, institutions are now looking for strategic ways to keep up with the rising pace of inflation and mounting operational costs.
David Montague is a seasoned real estate professional, having been at the helm of the largest Affordable Housing Association in Britain L&Q for over 2 decades shared some of his thoughts on the matter
Despite these stories appearing in the headlines, there are more of an exception than the norm. There is a tremendous amount of value for institutional landlords who can look past the white noise and take a strategic view of this product and find ways to integrate it within their existing strategy.
Instead of waiting for the last few units to be filled up, Institutions should pick the right partner and plan together for a more diverse community when delivering a new development, whilst simultaneously impacting their bottom line.
One such example is David Campell, MD of Alumno Group who has taken that strategic approach with short-term rentals and is reaping the rewards - you can find more about that here.
If you are still not convinced about this strategy, we can relate. Results speak louder than words, so why not have a look at some of the case studies we did with some of the biggest BTR and Purpose Built Student Accommodation operators.
“short stay can become an integral part of your letting strategy. And rather than worrying about the last few units at the end, we can start to plan together and we can create a more diverse community with your, you know, with the bulk of a, a new block or a new development being for long stay, but adding diversity.
Adding to the local economy, by bringing in a greater diversity of people. The other issue of course, is people. I think people have got this kind of Airbnb, like misconception that short stay equals party town. And and so they don't want short stay in their block because it's just gonna be used for people that want to for their stag night or whatever.
And of course that does happen, but it happens. It is not well managed. And so short stay can be well managed if you choose the right partner. “