How to make the most of the short-lets industry
This article was written by Merilee Karr, A Qandor member. To know more about her company, UnderTheDoormat, click here.
It’s not just private homeowners and landlords that are benefiting from the short-lets industry; there are all sorts of ways that property professionals can work with short lets to earn additional income, buy some time while the market turns, or create a more welcoming ‘lived in’ feel to a property that is for sale. Discover all the ways that working with a short-lets company can help your property business.
1) Short let benefits for Property Agents
You can easily work in partnership with a short-lets company without a conflict of interest. Usually, you’re after two different opportunities which can work in harmony, creating a partnership that benefits both companies.
Increase your cash flow
The average property in London is estimated to take three to six months to sell in the current environment. For vendors who have already moved out and awaiting a sale, this can put immense pressure on their cash-flow. Short-letting can help to generate a flexible income until a sale goes through for the right price.
A new revenue stream for property agents
Partnering with a short-lets company offers your agency a new revenue stream by referring customers who are in need of interim accommodation. You’ll want them to receive a service delivered to the highest standards which is insured, reducing risk for the company and your clients.
Flexibility for vendors
For agents, clients can earn an effortless income from short-letting until a sale goes through. If viewings occur during a guest stay, we will arrange an interim clean of the home to make sure it’s immaculately presented within a short time frame.
A new offering for your agency
You will be able to add short-lets, which are increasingly popular, to your agency’s offering, earning you commission with every home or guest request which today you would likely turn away.
2) Short let benefits for landlords and property portfolio owners
Fill void periods
Deliver short-lets in between long-let tenancies to improve your overall year-round yield.
Reduce risk of tenants carrying out unauthorised short lets
Allow short-letting in your tenancy agreements with the fully managed and insured service. This gives you peace of mind and a profit share from residents who travel often and avoids the risk of them doing it behind your back in an uncontrolled way.
Maximise income by short letting at optimum times
Short lets and long lets are complementary, as the peak season for short-lets is during the summer and Christmas period, which are traditionally quiet for the long-let market. Timing the period to look for new tenants to maximise the year-round yield can make the difference of a few % uplift in yield.
3) Short-lets for developers
Fill your developments
Developers tell us that it is taking longer to sell properties off-plan. With a slower market and the possibility of units unsold on delivery, there is an increased risk of discounting prices and developments appearing empty. You can ensure the ‘brand new’ feeling is maintained for viewings by working with a company operating in the premium end of the market.
As developments go live, it is likely some of the apartments will be un-sold on the date of delivery. Short-lets create a new revenue stream while you wait for the sale at the right premium price.
There is a good option to insert a best practice clause in new leasehold and tenancy agreements to allow short-lets when the owner is away. This allows you to generate an incremental source of income, which is then shared between the property management and the leaseholder or tenant.
So, short-lets are beneficial to many different areas in the industry. Working with a professional company means your property will attract high quality guests through world class channel partnerships. Guests are vetted, checked-in in person and photo inventories are conducted at the beginning and end of a stay. Housekeepers clean the home at the start and end of every stay. And all homes are covered by comprehensive contents, buildings insurance, as well as public liability to cover guests staying in the property.
UnderTheDoormat is a leader in setting standards in the sector. They are the first company to be accredited by the UK industry body, the Short-Term Accommodation Association (STAA) and Quality in Tourism and their CEO is the Chair of the organisation working closely with Government departments such as MCHLG, DCMS, HMRC and BEIS to ensure the responsible growth of the sector.
Whichever way you choose to take advantage in the rise of the short-let industry, one thing is for certain – it’s here to stay and there are some great opportunities to partner and benefit from short lets as a complement to your already successful property business.
To know more about how to become a member of Qandor, click here.