How Hostmaker increased Sonia’s income through flexible lettings and property management.
The problem: paying the mortgage while still making a profit
Like lots of Hostmaker hosts, Sonia – owner of a 1.5 bedroom property in South Hampstead – had spent years refining her home. She’d dedicated time and care to choosing the best furniture, paying for renovation work, and making happy memories to last a lifetime. That’s why, when she outgrew it, she was reluctant to sell. She approached Hostmaker with a view to seeing what short-term letting her home might involve, but having only used a traditional high street letting agency in the past, she had a few (valid) concerns:
- Would the lower tourist numbers in winter allow her to cover her mortgage payments and utility bills, and still make a profit?
- With Brexit’s impact on corporate travel to the UK, and EU student resident numbers, how could she guarantee occupancy year-round?
- Would she have to find time to manage viewings, greet guests and clean her place herself?
- How would the London restriction on short lets impact her income and occupancy?
The solution: fully managed, flexible lettings
Sonia approached us to initially discuss managing her home on a short-term rental basis. But with our expertise and years of experience, we knew that a fully managed, customised flexible letting solution would provide the biggest income. It would also guarantee a leading level of occupancy across the year, in comparison to other managed property services.
Hostmaker’s unique pricing and channel optimisation strategy
Our clever pricing and channel optimisation strategy meant that Sonia’s property was listed across short-term channels for the summer, while simultaneously being listed on longer stay channels (bookings over 90 days) for the rest of the year. That allowed us to maximise her profit from short-term lets across the fruitful summer period, while still getting amazing long-stay bookings for the rest of her availability.
Better still, through our intelligent pricing algorithm, we ensured that there were almost no gaps between bookings, achieving an impressive 94.8% occupancy across the year.
A one-stop letting solution for your home
Because Sonia chose Hostmaker to manage both her short and long-term bookings, we were in a unique position. We could plan viewings for longer stays in between her short-term rental guests, and our intimate knowledge of her property meant we could recommend services that made it even more attractive to guests – like a deep clean, or repair work.
Pay less and earn more with flexible lettings
Sonia’s results were impressive – if we do say so ourselves. They included:
- A 12.3% increase in net revenue compared to traditional high street letting agencies.
- 94.8% occupancy across the year.
- A 24.4% increase in summer income compared with other short-let management agencies.
All this, while paying less in fees. Win win.
With Brexit looming – throwing the property market into uncertainty – it’s more important than ever to make sure your rental property is occupied, and making you enough money to pay the mortgage while also turning a profit.
To find out how our flexible letting solution could work for you, get in touch and speak to a member of our dedicated long let team.