Property investors and second home owners have had to take a different approach since new buy-to-let tax relief changes have come into place. Long term lets are now not usually as lucrative as short term lets, but short term rentals require more management to run effectively. The opportunities in the short term rental market are exciting, yet investors have to be willing to put in the work – or hire a successful property management company who know what they are doing.
For example, a property could make £1,500 a month, but a better maintained property with more amenities could charge double the nightly or weekly rate to bring in £3,000 each month. Hosts and landlords who are willing to create amazing guest experiences can increase the yield on their property investments. The higher a property’s rating on rental platforms, the more guests are willing to pay.
Although less concerned with which guests are staying in their properties, and more concerned with achieving superior yields, portfolio owners must always keep in mind that 5-star reviews and better guest experiences contribute to higher search rankings and higher prices per night. 5 star-rated properties can charge more than 3 and 4 star-rated properties.
It is therefore pivotal that portfolio owners choose the right management company that can both maximise yields via superior pricing strategy, pricing data and local market expertise, as well as deliver 5-star experiences that guests will write rave reviews about and keep coming back for year after year.
Top ways to boost the income from a property portfolio:
- Consider the location when looking to invest – try and buy in property locations where accommodation demand exceeds supply. Hostmaker’s experts in pricing and market expansion look at a multitude of factors including supply and demand, and large scale business or cultural events taking place in certain locations. For example the Barcelona Mobile World Congress which attracts more than 107,000 attendees, and tourist spots like Paris which attracts upwards of 30 million visitors yearly.
- Size, amenities and first impressions matter. Always try and maximise guest numbers, by including sofa beds. Properties should be configured to ensure amenities and property condition is always top notch – which offers additional yield for little return. Hostmaker’s 5 star property management services can help with this across portfolios.
- Multi-list properties to ensure maximum exposure. Airbnb is a great place to start but the most successful portfolio owners are reaching beyond Airbnb to include booking.com, HomeAway and Expedia. We list our hosts’ properties across 15+ channels, including a number of platforms exclusive to Hostmaker.
How to choose an Airbnb management company:
Most Airbnb management companies attest that they provide great guest experiences and superior yields. Hostmaker is different – we focus on the needs of customers rather than merely ticking the boxes. Examples of how we go the extra mile for our property owners:
- Significant investment in our pricing algorithms and global pricing experts to ensure we continue to deliver superior yields for our hosts consistently
- We look after your guests to ensure that they are 5-star happy – with a welcome wizard, customised local welcome pack, local recommendations and unrivalled communication. We consistently receive guest reviews from happy clients, such as:
“Ben’s flat was absolutely perfect for our stay in London. Listing accurately describes the property and it is even more lovely than in the photos […] we couldn’t have asked for a better experience. Ben and his team were excellent about communicating to ensure our experience was top notch. I would 100% recommend Ben’s flat.” – Erika, March 2016
- We invest in our host dashboard so that hosts have all the information that they need at their fingertips; yield, occupancy, blocking availability, and a personal dedicated account manager who has market expertise and location specific knowledge. See what our clients around the world have to say about our service:
“Great high quality service I used Hostmaker for 2+ years and was extremely satisfied with their service. I live in the United States and was renting my apartment in Paris and they took care of everything: making the ads, dealing with inquiries, check-in and check-out of customers. My income increased by 1.5 over the year, the apartment was kept clean, and prepared for me when I was coming to Paris and wanted to stay at my place! And they took care of small things needed to be repaired or replaced in the apartment. I highly recommend it!” – Joy, February 18
“Hettie and the team did a fantastic job of looking after our flat while we were travelling. It was occupied for pretty much the whole of the 10 week period and every review on Airbnb was 5 stars across the board. Look forward to using their ‘hands off hosting’ service again. Highly recommended.” – Jay, January 2018
Get in touch to find out more about hosting your property as a short term let to increase your annual income and boost the performance of your assets.