Short term lets have had a significant role to play in the rental market over the past year, performing better than other sectors, and the good news is that this trend looks set to continue in 2022.
What’s driving the growth in short term lets?
Although the short-term rental market has not been immune to the challenges presented by the past couple of years, it has weathered the storm well for three key reasons:
The rise of the “staycation”: Many people are choosing to avoid foreign travel and remain in the UK for their holiday, with the increase of “staycations” driving demand for short-term holiday lets. People’s desire to explore the UK and enjoy the convenience of holidaying while avoiding airports indicates that demand for short-term lets for holidays is here to stay. BuyAssociation reported that 47% of families looking for holiday accommodation were interested in finding a cottage or villa rather than staying in a hotel.
Nomadic workers: Another trend driving the demand for short term lets is that of the nomadic worker. For many people, working from home looks set to remain a long-term work option; it doesn’t matter where they are based if they can continue to work. This has seen a rise in people taking on short term lets they can work from but also use as a base to explore a new area, allowing them to combine travel and work.
Modern rental options: We recently discussed how the build-to-rent sector continues to grow and the increasing availability of purpose-built rental properties specifically designed for the rental market. They offer an attractive proposition with great facilities, easy access to wi-fi, and high-spec interiors. Unlike many traditional rental properties, they offer flexible rental solutions, including short-term lets. These types of properties speak to those who don’t want to rent, and as the number of build-to-rent properties increases, it will also help attract more people to the short-term rental market.
How can landlords adapt?
As the short-term rental market is likely to continue performing well, landlords and letting agents may want to look to their own portfolios to see how they can benefit from the trend. In this case, the ability to be flexible and manage regular changes in tenants will be essential, and technology will play a vital role.
We’ve already seen how technology such as keyless entry, digital property guides, and an array of communications tools can smooth the onboarding process for new tenants. But there’s also an array of technology that supports the quick transition of tenants. Online inventory tools, check-in services, and end-of-tenancy checks all make property management efficient and easy while still protecting your property and keeping operational costs low.
There are plenty of opportunities for landlords and letting agents in the rental market, but you may need to examine how you apply tech to manage your properties to keep pace with change.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, applying high-tech solutions to streamline your cost and reduce your workload, then contact No Letting Go today.
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