In-depth research by leading Proptech firm Staykeepers, which specialises in improving occupancy rates across a multitude of property types, has revealed that short-term lets can offer far greater returns than traditional and typically more preferred long-term agreements. The data indicates that short term rentals can achieve up to 80% more revenue per unit than long term rents.

Commenting on the findings, Ivo Gospodinov Co-Founder and Director of Staykeepers, said: “The operating costs of development assets in the BtR, student housing and multifamily sector are constantly rising, which is leading to reduced profits, especially with a large number of units tied into long-term rental agreements. In a year where costs across the board are spiralling, what was once considered a monthly/annual rental income per unit that would deliver a profit is barely covering costs within a matter of months.

“This is largely due to the fact that landlords can’t make adjustments until the long-term tenancy is up, whereas landlords can attain income growth by adding short to mid-term stays to their buildings’ standard offering. This is where our expertise and unique digital models can achieve up to 80% more revenue per unit. By leveraging technology and operational support, landlords can minimise costs and manual labour and enjoy the flexibility to react to sudden market adjustments.”

Staykeepers work with landlords and development managers to create a bespoke and effective rental strategy, which embeds a short stay activation into the asset management strategy. Staykeepers then utilise their revenue driven technology, which includes dynamic pricing updates listings daily to achieve the best price the market will pay for, that contributes to the ability to achieve up to 80% more revenue per unit than long term leases.

One example of Staykeepers achieving a significant revenue increase is a recent activation at Enclave, an exclusive Build-to-Rent development in King’s Cross. Staykeepers, together with Outpost, implemented a short and mid-term letting strategy, which resulted in an incredible 110% increase in revenue for three-bedroom apartments (compared to long-term rents), as well as a 67% revenue increase for two-bedroom apartments.

Staykeepers’ dynamic pricing technology optimised and updated unit prices daily to maximise revenue for the client and increase margins for the overall asset. In June, over £340 per night was achieved amongst paid reservations, with available units listed on over 75 marketing channels.

Ivo added: “We are regularly monitoring the market, which allows us to remain agile and implement the best strategies to improve occupation rates and achieve the best possible revenues. Since January 2022 alone, our clients have seen a 65% increase in daily revenue on average across their portfolio, whilst specifically in London we have delivered a 75% increase across the same period.

“This is also reflective with our international clients, where one particular partner in New York saw a 249% increase in the average daily rate achieved across three months, following a switch to a short-term rental strategy.”

Founded in 2015, Staykeepers is one of the UK’s leading property technology companies focused on connecting quality build to rent, co-living and student accommodation with guests and travellers around the world.

Active in over 57 cities around the world and working with some of the biggest multi-purpose accommodation operators, Staykeepers works to fill short term and long term lets, affording its landlords and investors maximum exposure across world-leading platforms such as Booking.com, AirBnB and Expedia.