This might sound like an unusual question from a property technology (PropTech) company specializing in short-term, flexible accommodation, but for our clients it’s fundamental. Their long-term rentals are a stable, steady source of income.
OK, long-term residents won’t deliver the $5,500 extra monthly revenue that we’ve seen for 3-bed multifamily apartments in the UK, but that’s not the point. Smart investors want a balanced portfolio, with a healthy mix of a steady income alongside higher-risk, higher-reward opportunities.
But what if you could take the ‘high’ out of high risk?
How to fund resident retention
First things first – filling units isn’t cheap. Even looking beyond the prospect of lost rent, most units need maintenance and refurbishment for every new resident. It’s a fact of life for rental properties, and even more so for long-term wear and tear.
Multiply that by a number of units and those figures soon add up.
It’s the main reason why Staykeepers includes the staging, furnishing, and photography of units, as well as the housekeeping onboarding and oversight, as part of our fully managed service.
Although our guests stay for less time and on average leave less of a mark, it’s just one less headache for our clients to worry about.
When this cost-saving is combined with the significant upside that many managers are enjoying through short-term rentals, the question then becomes: ‘how could you reinvest in retention?’
Dan Lieberman, the author of “The Effective Landlord” and owner of Milestone Properties in San Francisco, recently pointed out that when all the costs of change are factored in:
“You could buy them [residents] a new TV and give them a nice dinner out – and you’d still be ahead even if they stayed just a few months longer.”
When our clients stop to add up how much money they spend on paint alone, that’s a dinner worth paying for.
There’s another headache that keeps many property owners up at night – marketing. Word-of-mouth just won’t cut it in a digital world and the best-known property sites can, and do, charge a premium to list each empty unit.
And that’s after finding the right platform for the right location, for the right target market. It’s just another reason to invest a little extra to encourage residents to stay for longer.
It’s also why we’re a proud tech company as much as we are a property company. Staykeepers technology advertises our short-term rentals on more than 450 marketing channels, with real-time availability updates to keep lost rent to a minimum.
We help our clients be seen in more places at once, and being ‘always-on’ means we can also deliver live market intelligence and pricing advice, too.
Freeing up this time lets them focus on the hard part – nurturing relationships and finding out how they can hold on to good residents for longer.