Short lettings are relevant to private rental sector.
Short letting is one of the juicy fruits of the new economic paradigm – the Shared Economy – bringing together people from all walks of life for the benefit of society on the whole. The new philosophy of sharing your possessions with others for profit appears to be the new norm across multiple sectors: real estate, ride-sharing, music, the list is endless. In the real estate sector Airbnb is the perfect example of how the model is working with an estimated valuation of $31billion and providing hundreds of millions of guests with accommodation annually. In the transportation sector, Uber – listed on the stock exchange - was valued at approximately $40billion in 2017. The world’s economic model is changing, and so are we.
When two parties connect to each other - one party shares something with the other, in exchange for money. People are connecting, and value is being created - a situation that benefits both sides. Short-letting is the perfect example of this.
Short-Lettings or Short-Term Rentals are the backbone of Airbnb. In a nutshell it involves the renting out of furnished, self-contained apartment for short periods – usually monthly, weekly or daily, as opposed to long-letting which is more on an annual, longer term basis.
The new age of technology coupled with the short-let concept has unlocked untapped revenue. Not only for the owners of these apartments but also for tenants who sub-let to take advantage of times when they aren't using their apartments (while on vacation or away on business).
Platforms (mobile applications) like Airbnb, Booking.com, Home away and many others provide these additional short-let opportunities to owners and renters by advertising these properties on their behalf and help with finding tenants / sub-tenants to help earn this additional revenue over a short period. In 2017 alone Airbnb renters and sub renters the world over rented in the region of 100 Million booked nights.
As owner / operators of thousands of apartments in the UK, build-to-rent operators are perfectly placed to deliver to - and benefit from - the new shared economy model. Their primary goal is long-term rentals. However, the sector has tremendous potential to unlock revenue from short-letting by giving their long-term tenants the right to let their apartments on a short-let basis when they aren't home.
The adoption of short-lettings by BTR owners will deliver a two-fold result: generate additional income of 10% for owners; and 75% for their “residents” from each short-let booking. Initial research would suggest that the opportunity could represent an additional 1.5% yield for their buildings!
To date the Private Rental Sector has not been a part of this new short-let model. This is due to the sector being in its infancy and as a result of build-to-rent owners not having the ability to manage this new amenity in their building, given their current systems and processes.
Today Staykeepers is the only amenity in the UK that brings incremental revenue to build-to-rent companies. Driven by our innovative technology platform, Staykeepers enables compliant, safe and controlled additional revenue for building owners and residents alike.
At Staykeepers we believe in developing partnerships enabling us to deliver the most valuable service to you and your residents. We tailor our services to meet our client’s needs. We are changing the face of the private rental sector by providing an innovative amenity that is a win win for everyone involved!