Four reasons Short Lets will radically increase your rental income (if done correctly).
In the dynamic world of property, the game is always changing. One of the most exciting developments in recent years is the increasing popularity of short term lets – rental periods that span a period of 6 months or less.
At Teddy, we've witnessed firsthand how these short term lets have transformed the rental market. They command and achieve a premium of circa 30% - 70% more than traditional rentals, making them a lucrative option for property owners looking to boost their income. In this article, we'll share our insights on how to increase your rental income with short term lets and capitalise on this lucrative opportunity.
1. Capitalise on the supply and demand imbalance
One of the key reasons short term lets are so profitable is the astounding supply and demand imbalance. London, being a bustling global metropolis, is a magnet for travellers, professionals, and students alike. The city's continuous influx of visitors, corporate relocations, and students creates a year-round demand for short term accommodations. However, the supply of such properties falls significantly short of meeting this demand, driving up rental rates.
As a property owner, this presents a golden opportunity to maximise your rental income. By offering your property as a short term let, you tap into a market where demand consistently outstrips supply, allowing you to charge a premium for your space.
2. Increase Income by ensuring you are always achieving maximum market rent all year round
One of the most compelling aspects of short term lets is the flexibility they offer when it comes to pricing. Unlike traditional rentals, where you're locked into an annual rate, short term lets allow you to adjust your rates regularly. This flexibility lets you adapt to market changes and capitalise on peak demand periods, events, and holidays.
By actively managing your property's pricing strategy and setting competitive rates, you can significantly increase your income. Think of it as fine-tuning your property's earning potential on a daily or weekly basis, rather than waiting for an annual lease renewal.
3. Reduce Void Periods with strategic marketing, clever pricing and an efficient change over system
Void periods, or the time when your property remains unoccupied between tenants, can be a significant drain on your rental income. With short term lets, you have the advantages of constant marketing and the ability to tweak prices daily to ensure you are always booked.
To minimise void periods, always plan ahead and market your property well in advance of available dates. By creating a good runway, you ensure that new tenants move in almost seamlessly after the previous ones check out. Effective marketing, combined with the right pricing strategy, can keep your property occupied and your income flowing consistently.
4. The Value Is in Expert Management
While it's true that guests and tenants are often easy to find, the true value in maximising your rental income with short term lets lies in expert management.
Managing a short term let involves more than just listing your property on a booking platform; it requires skill, experience, and a deep understanding of pricing and marketing strategies. At Teddy we specialise in managing short term lets, handling everything from guest check-ins and mid-stay management to cleaning and linen change overs. We leverage our expertise to ensure your property operates at peak efficiency, allowing you to enjoy a hassle-free income stream without the day-to-day management burdens.
Convinced?
Short term lets are not just a trend; they're a lucrative opportunity for property owners looking to increase their rental income. With a premium of circa 50% or more on traditional rentals, it's an option that's hard to ignore. By capitalising on the supply/demand imbalance, optimising your pricing, minimising void periods through strategic marketing, and investing in expert management, you can unlock the full income potential of your property. At Teddy, we're here to help you navigate this exciting market and maximise your rental income like never before.
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