How your sofa bed can increase returns on your property investment

The design, cleanliness and amenities of your property are just a few examples of what can help your listing stand out as a preferable option to stay for travellers. As you continue to optimize the performance of your rental property and provide your guests with a memorable experience, do not forget about the underestimated sofa bed.

Conventionally, the sofa bed served as nothing more than an emergency piece, simply existing to house that extra guest for a night or two. Most of us would be able to attest to how infrequently our sofa beds have been used by adding the collection of loose change found underneath the couch cushions. However, with the growth of the Homestay industry, the value-added of the sofa bed has also evolved.

Increase your average daily revenue by up to 13% with our rental management services

In London, one to four bedroom homes with a sofa bed have a higher average daily revenue. In other words, you can charge more per night for your property and not suffer a loss in occupancy.”

After conducting an in-depth analysis of Hostmaker properties and Airbnb properties listed in London, U.K., we can determine the value-added for properties with a sofa bed versus those without one. Hostmaker homes with a sofa bed enjoy an 8 to 13 percent increase in daily revenue**. However, pricing your home should never be a game of throwing darts, there are many factors to consider such as season, location, and the number of bedrooms in your property. Thus, having industry leading experts with intricate market knowledge is paramount to determining the optimal pricing strategy for your home.

Is the cost of a sofa bed worth the investment for your short-term rental property?

Yes, absolutely. The upfront cost of a sofa bed might seem daunting, but in today’s market, quality sofa beds come in a range of prices and you do not have to sacrifice style and comfort when considering which sofa bed to buy. Throughout the year, Hostmaker homes have at least a 70% occupancy rate which means you will recover the costs of the bill for a £300 sofa bed in 1-1.5 months, and a £600 high tier sofa bed in 1-2.5 months*. 

4 favourite sofa beds used by our Interior Design Team

Below you will find some of the top sofa beds that have been used by our Interior Design Team in Hostmaker homes. We’ve considered a range of styles and budgets, helping you find the perfect sofa bed for your Airbnb property.

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Design Team Favourite: £800                         £299: The Chou Sofa Bed

£399: The Chou Sofa bed with Storage        £1,000: John Lewis Innovation Recast Sofa Bed

 

Will raising the price of my property dissuade potential customers?

It is a common misconception that charging a higher price for your listing will deter potential travellers from booking a stay at your property. However, our data shows that in general, most hosts on AirBnB undervalue their property listings. This not only highlights the importance of having the right market knowledge to price your home correctly, but equally as important is having knowledge about traveller behaviour.

It is vital not to typecast travellers using Homestay properties as one of the same; each has his or her own preferences and desires when travelling. In fact, travellers can be divided and grouped into different types of segments based on their preferences and needs. Outfitting your home with a sofa bed makes it more malleable to consumer differences, thereby expanding the total number of consumers that would be interested in staying at your home.

For example, one segment of travellers might be a family of four who prefers to travel on a budget. This family might find a two bedroom in your city too expensive and are more comfortable staying in a one bedroom with a sofa bed to save money. This turns out to be a win-win situation for both you and the traveller.

Want to become a host with Hostmaker?

It is important to note that the features of your property are not mutually exclusive and a sofa bed is only a piece of the puzzle to having a successful property. The features of your home should make your guest feel comfortable when they travel –  from the design, cleanliness, seamless communication and amenities. Hostmaker specialises in property management, making  each property a unique and successful player in every city; bringing you a higher return on your investment. To learn how our team of industry experts can help maximize your returns, contact us for your property assessment.

Posted by Anthony Kuey & Joseba Matanza
Hostmaker Analytics

*Information is based on internal Hostmaker and AirDNA data. All statistics were computed at 95% confidence.
**Total time in months can vary depending on seasonality, property size and location.