Before you invest your money into a renovation, it’s important to identify the factors in line with your expected return and also consider if it is worth evaluating your chosen rental model.
But what is the winning formula and how can you use it to your advantage?
The best of the biz
A new type of short to medium-term tenant is building traction in the rental community – business travellers. It comes as no surprise that this sector of tenants spends on average £1.2 trillion on short-term rentals per year.
For you to target this audience with longer-term letting options, it’s worth keeping the ‘international commuter’ in mind when redesigning your space.
Not only are corporate travellers easy to manage due to fixed travel plans and schedules, but they often return to the same city many times a year.
These professionals, who are working overseas for weeks or months at a time, will likely find homely properties more appealing than costly hotel rooms. To make your home an attractive option for this growing audience there are a few specific features you should consider incorporating.
A key aspect to get right is creating a viable and defined workplace. One thing that carries significant weight is access to strong, stable Wi-Fi. While this may seem obvious, many landlords lose out by not meeting the speed requirements necessary for video conference calls.
Your corporate traveller guests will also need the ideal space to feel comfortable in their ad-hoc office. An adjustable, stylish and back-friendly chair is critical here given that they might not have a fixed office while visiting other cities.
Landlords looking to make the most out of their space can add tuck-away desks or one-sided accent desks in front of a window or beside a book collection for added inspiration.
Stock your property with must-have essentials to adopt the finishing touches that hotel brands have perfected. Have your guests arrive to a closet full of hangers, equipped with an iron and board to rid the wrinkles of their crisp, white shirts.
Exhausted by travel and expected to snap straight into the working day, corporate professionals’ access to premium quality coffee machines to give them that caffeine boost can make a significant difference.
The keys to the kingdom
Another option for homeowners looking to transform their portfolio is to adopt a customised flexible lettings model. The formula works by combining short, medium and long-term traditional lease models throughout the year to diversify risk and increase yields.
A range of tenants can prompt higher levels of occupancy across the year, more accurately priced against seasonality, events, demand and supply, subsequently improving cashflow.
With the flexible lettings market now offering competitive data, allowing for detailed analysis of past performance, landlords with multiple properties can strategically diversify their tenants and appeal to their unique needs.
By targeting a select number of different tenant audiences across the year can keep you on top of the market.
Working with an experienced management company can also help to improve the value of your portfolio.
Experienced property managers can not only advise on an ideal pricing structure but also optimise the channels on which your property is listed throughout the year.
Tis’ the season
With England now set as the second-best tourist destination in the world and Christmas on the horizon, using your home as a short-term rental over the country’s busiest seasons can undoubtedly boost your properties revenue.
Seasonal tourists are attracted to a home rental that offers a more authentic and personal experience.
When redesigning your home, make it grounded in the bustling area in which you live. In London, those located west close to Harrods can embrace a traditional English theme, with each room bundled in a unique design.
At a low cost with maximum gain, quirky accessories, plants or seasonally themed items, such as mini stockings and crackers can also help improve the guest experience.
To create an even more unique stay, you can upgrade the aesthetic of your property with relevant artworks or photographs sourced from local vintage stores.
Another great way to make your property even more desirable over Christmas is to provide atmospheric extras such as chunky throws, fireplace logs and even a small tree which will make your guests feel right at home.
Millennial proof your property
The number of millennials booking homestays is currently growing at 128% year-on-year, making them a valuable demographic to target.
A growing number of millennials want flexibility, don’t want to sign such long-term leases, and are very trend-focused.
By adding character and warmth to your property, creating the feel that your guest is in the heart of the city can make your property even more attractive.
Consult with your property managers what key features millennials are seeking out. Edgy interiors, combined textures, and an all-round Scandinavian ‘Hygge’ design can set your property up to appeal to this important audience.
In today’s shifting rental landscape, landlords can benefit significantly from creating an environment that caters to the desires of their target market and there are services available to help you flexibly manage occupancy across your portfolio.
The opportunity is there for the taking, now is the time to make a start.
*Nakul Sharma is Founder & CEO of Hostmaker