In recent years millennials’ preference for experiences of adventure or pampering over owning large value items have ignited an experience economy. New data from Hostmaker shows that this preference extends to holiday and business lets, where millenials are willing to pay more than any other age group for fancy interiors.
A survey of five years of data, a total of more than 133,000 stays, found that the demand for homes with the highest spec interiors – those that had received the premium design service provided by Hostmaker to its landlords – was higher for those aged between 24 and 34 than in any other group.
80 per cent of this group was travelling for holiday, whilst 20 per cent was on business. The most popular countries of origin were the US and the UK, followed by Spain, France and Italy. The average length of stay was five days at a cost of £100 per night.
How Can I Maximise My Rental Returns?
Hostmaker’s new plug-and-play service is proving increasingly popular with landlords because it removes the hassle of turning a steady buy-to-let rental into the sort of top end home, that appeals to short and mid- term as well as longer-term (more than 90 days) tenants. Shorter-term lets are often more lucrative – especially in peak periods like summer time and other national holidays – than longer-term lets, one factor that helps Hostmaker customers in London earn on average 39 per cent more for their property than the city’s rental average.
The service was instrumental in improving this one-bedroom apartment in Fitzrovia, which has enjoyed markedly improved rental returns since it was recently converted.
The bespoke design advice and fitting service has been added to Hostmaker’s other services, which include organising photos, preparing the listing and attending the home in between visits to ensure it is tidy for the next guest. This list of chores is enough to put off even the most energetic landlords and many have avoided the short- and mid-term letting market as a result, missing out on the 39 per cent rental uplift.
However, extracting this premium requires expertise. Hostmaker’s optimal pricing and multi-channel markets strategy chooses the optimal mix of these types of homes, depending on the location of the property, its facilities and the time of year, with usage shifting onto shorter period lets over the summer, where demand is highest, for example.
What Does This Data Mean For My Rental Property?
Because Hostmaker, not the landlord, looks after the marketing of the property – as well as the interior design, should customers opt for the plug-and-play route – the burden of time and organisation is removed. All the landlord needs to do is sit back and watch their property perform better than she ever imagined it could.