Do you consider short stays a part of an ongoing strategy, or for when units are left empty? If you believe the latter, you are not alone:
Within the multifamily sector, it’s commonly seen as a way to sustain income during the stabilization period for new developments, or for use between tenancies.
In student housing, short term rentals are often seen as a Plan B for when September uptake is low, or to earn revenue during the Summer period.
It’s something Sarah Canning of The Property Marketing Strategists discusses on a recent episode of the Beyond The Stay podcast, including the impact on operators and guests:
Missing out on revenue
As Sarah discusses, short stays are often an afterthought - and it is a costly one, as you miss out on A LOT of revenue. Just look at the stats for yourself:
Benefits of a short term letting strategy
As shown above, running short term lets throughout the year does greatly increase revenue. But there are also a whole host of other benefits, and here are some of the most important ones.
Advance sales with seamless operations
Starting your own short term operation from scratch is no easy feat. By having a team of experts responsible for successfully accommodating over 120,000 reservations, you’re accessing extensive practical experience across existing operational teams on the ground. Team members have a clear understanding of how best to coordinate operations with all stakeholders, in order to provide a durable service and generate sales in advance.
Recurring guests and increased trust
People like what they know, and recurring guests can bring in consistent revenue across your portfolio. Having long standing listings also builds trust when new potential guests find you online, increasing chances of conversions into a sale.
Diversified income streams
There is a misconception that when it comes to short and long term rentals it is an “either or” scenario. However, both strategies can be complementary and work really well together (provided that the services partner has flexibility and is willing to accommodate sudden spikes in demand).
By widening your client base to include both short term guests and long term tenants, you are diversifying the building’s income, increasing flexibility and its asset valuation.
Future proofing and creating flexibility in your assets
By planning a short term rental strategy in advance, you can start generating revenue pretty much from the day you deliver a new building or scheme. Alleviating the lengthy time period to fill buildings with long term tenants, the asset generates revenue rather than being a drain on the cashflow.
Plus, adopting a short term rental operation as part of your core strategy provides you with a level of flexibility to respond to uncertainty in market conditions, sudden drops of occupancy or simply to achieve revenue above long term market rates.
What makes a successful short term rental program?
We’ve collated all the data and practical experience from Staykeepers and put it into this free guide. Discover the six steps to successfully earning revenue from short stays by clicking the image below: