Property owners will need to think differently this winter, with empty apartments costing more than ever and residents facing serious spending pressures. Here are a few of the ways they can adapt to the cost of living crisis and even increase revenue.
How will you adapt to new energy and operational prices? It’s a question being asked right across the world as nations scramble to adjust to the cost of living crisis. In the UK, the Financial Times reports that annual bills will rise by an average of £3,549 from October, placing unique pressure on residents and landlords alike.
For property managers with multiple units, these new figures compound to create huge pressures across portfolios.
How Build To Rent and Student Housing landlords can adapt
Most conversations have focused on longer-term solutions – increasing and improving insulation or installing renewable energy sources like rooftop solar panels.
While these are great arguments, property owners may not have the required investment capital to hand. Not to mention the time it takes to install renewable sources and realise cost savings.
Mixing in short-term rentals, on the other hand, presents a quicker win.
New property technology means that changing apartments from long-term rents to short- term has never been easier. Onboarding to the Staykeepers platform takes place in as little as 21 days, with calendars and advertising opened in advance to secure new revenues as quickly as possible.
Our profit comes from successfully filled apartments as part of a shared revenue pricing structure, which means we want to find guests as quickly as you do.
Bucking the trend
As well as targeting a new demographic, short-term rentals typically deliver higher returns for property owners, with residents paying a premium for the benefit of flexible accommodation.
In one UK example, Staykeepers was able to deliver 89% more revenue than long-term rentals. This allowed the London-based residential management team to strategically increase revenue with short to mid-term leases while they secured long-term rentals. Every portfolio and location is different but the end result is often the same – short-term rentals deliver higher returns, and this looks to hold true this Winter.
Baking in costs
There is another benefit of tapping into this new revenue stream. Price increases are a conversation no property owner enjoys having, especially in the current climate. On the other hand, maximising the potential of short-term rents means also benefiting from daily pricing updates. This means that our technology scans the competition in real-time, delivering recommendations on how to get the best price and ensure a secured rental.
In this model, it’s much easier to bake in any required increases in energy costs without upsetting residents, whereas the conversation with long-term guests presents a far more complex problem.
So while it’s absolutely right that markets consider how best to improve their energy supplies, they need to keep the lights on in the meantime. Property technology presents an opportunity to do just that.
To find out more about our services and how they can support your businesses, have a chat with oneof ourexperts today.
How will you get creative this Winter? Let us know in the comments below: