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With London rents on the rise, is now the time to look at flexible stays?

According to Hamptons, average rents across London grew 15.7% over the last 12 months which is more than any other region in the country. With rents on the rise, is this enough?

Stating the obvious

As mentioned in the article, almost all of this growth is recovery from the pandemic. Plus with inflation and the cost of utilities consistently rising, this doesn’t seem to be a real win for the London market.

For build-to-rent specifically, landlords are facing a couple of core issues:

  • Empty Units-- with the increases in the cost of living, build-to-rent units are seeing longer vacant periods during the initial stabilization and between tenancies.
  • Reduced profits- as operational costs for assets continue to rise, profits are impacted. Often landlords don’t have the option to increase long-term rent prices.

     

Increasing net operating income and profit margins


A solution for build-to-rent landlords is to diversify with a high-yielding, supplemental source of income. This can be found in flexible stays (short to mid-term lets).

London is the perfect hotspot for flexible stays, with huge guest demand for both business and leisure trips. Since January, our clients in London have seen a 75% increase in daily revenue on average across units.

By partnering with Staykeepers, flexible stays are made easy with marketing on 450+ channels, guest communications, and vetting, plus logistics support all in-house.

Here is a current success for a client in London:24fbacfc5b071b42f5237420b8005db6b12871e8-3

Speak to the team today for bespoke revenue projections, or use our free calculator for an estimate. Discover more about our services here.

 

staykeepers short term rentals quarterly market report

 

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