There’s a certain brand that immediately springs to mind when we think of short-term letting. It brought the ability to book a stay in a home anywhere in the world and with it an opportunity to live like a local wherever, whenever and for whatever length of time you want.
The short-term letting boom opened the door to unprecedented flexibility for travellers. Very quickly, a two-bed apartment a stone’s through from Las Ramblas; an overnight stay in view of Edinburgh Castle; or a long weekend in London’s West End for dinner and a show were just a few clicks away and without a huge hotel bill to pay. It transformed what we all thought holiday accommodation was, and it also changed the way landlords viewed the earning potential of their properties.
But what happens when that door is slammed shut? What happens when flights are cancelled, theatres, restaurants and attractions close and visitor numbers dry up? What happens when events are called off, tourism disappears and towns and cities across the world are suddenly effectively closed for business?
When the initial lockdown struck in March 2020, new bookings for Airbnb plummeted by 85%. Cancellation rates were close to 90% and $1 billion worth of bookings were wiped out.
The past year has taught us landlords can no longer plan in short-term increments reliant on people’s ability to travel the world or for events to go ahead. Short-term letting can be profitable in times of plenty, but the impact of the COVID-19 pandemic has exposed how precarious a market it is, with success delicately balanced on demand which can disappear overnight.
So, what’s the solution? How can landlords secure guaranteed income throughout the year, bringing with it security in times of uncertainty? The answer is to change your short-term let to long-term.
Supply for demand
At Tay, in the initial six weeks of lockdown, we secured new tenants in 71 properties. In the first half of May 2020, despite the inability to view properties, we conducted 126 FaceTime viewings.
The demand of rental properties has remained consistent. Long-term rentals are not as volatile or influenced by circumstance. That’s why taking bets based on short-term movements isn’t a strategy for long-term success. Through our Tay Invest service, we guide clients through every step of the journey so they maximise their investment in the long term. Every year and throughout 2020, we saw a healthy and continued appetite for rentals, with the vast majority of our properties taken off the market within a week.
A guaranteed income
With a longer-term vision, monthly earnings could equal or perhaps exceed what was earned via short-term rental. As the property will not be vacant for any part of the month, your income will be a guaranteed amount as opposed to a fluctuating figure dependent on a busy or quiet period at a particular time of year.
Peace of mind
At Tay, tenants are vetted and inspections are carried out regularly, ensuring neither the tenants nor your property are at risk. With less footfall between guests and the ability to plan long-term, you can rest assured your tenants are safe and your property is secure.
There are no changing sheets between guests or having to check people in and out. We’ll take the keys and you won’t have to worry about anything else. Your long-term rent will help to provide consistency and security, despite coronavirus or any other obstacle life throws up.
Get in touch to find out more.