Answering the question of how much property income homeowners are likely to earn is actually harder and more complex than you might think. There are several important factors at work that we at UnderTheDoormat take into consideration. Pricing homes for short lets is incredibly sensitive. Unlike long lets, which are for tenants, short lets are for guests who want a place to stay for a duration of 90 nights or fewer (7-14 nights is the average). This means that your home will compete with hotels and B&Bs, so it will be affected by how much they charge. As we know these prices fluctuate on a daily – even hourly – basis.
At UnderTheDoormat, we like to visit a potential homeowner and see their London home in person. We answer their questions about short-letting and make a decision on whether the home meets our criteria. We review the quality of the home to ensure it will meet our guests’ standards and be a welcoming place to stay when they visit London. Once we’ve seen the house or flat, we can provide a proposal on how much property income they’ll earn, should they decide to join us.
Location, Location, Location
The age-old adage is never truer than with short lets: where exactly in London the home is situated impacts the price greatly. Overseas tourists and business people generally want to stay in neighbourhoods they’ve heard of, or close to tourist sites they’ll be visiting. Some are more sought after and therefore command a higher price then adjacent neighbourhoods. Homes in areas like South Kensington, Mayfair, and Covent Garden will generate more property income than similar homes in Pimlico, Clerkenwell or Waterloo.
The walking distance from the nearest tube station plays a key role, too. Less than five minutes on foot? Perfect! Up to 10 minutes? Acceptable. 15 minutes? The nightly rate you can expect will decrease considerably.
What Makes Your Home Special?
Next, we look at the home itself to see how many guests it will accommodate. How many bedrooms do you have? What type and size of beds? Do you have a sofa bed and is it of high quality? One-bedroom apartments are great for couples or business people and we have a lot of demand for those year-round. When considering how much property income your home could generate, it’s worth bearing in mind that one bedroom and studio flats are directly up against local hotel rooms (and as such will need to be priced accordingly). How many bathrooms and en-suites will be factored in too, particularly for homes with 2+ bedrooms.
Outside space – such as a private garden or a balcony, is a huge plus – and guests often search for homes where they can sit outside (when London’s weather permits, of course!). Given that the photos of your home play a huge role in selling your home to guests when they are searching on booking websites, if you’re blessed with a home overlooking the River Thames, or with a breathtaking view across the city or London park, we will be able to charge a premium for this.
The last factor we take into account when pricing your home is how well your home is furnished and decorated. Homes that ooze character, charm and style are going to photograph well and be places our guests will love to stay in while they’re living like a local in London.
A True Working Partnership
All of the above help us to narrow down a range for your home. But we aren’t there just yet! The UnderTheDoormat pricing team will use a multitude of pricing models and comparable data to price your home accurately.
Why do we go to all this trouble? Because we want a partnership with our homeowners. We want to be honest about how to achieve success so that we all get off to a great start. If we price your home too high, the danger is that the number of bookings you’d receive decreases and you risk earning less in the long run. Also, with rates that are comparatively too expensive, you’re less likely to get longer single bookings, which is the best way to achieve high occupancy. As mentioned earlier, as short-let pricing is so sensitive, it’s incredibly important that we price your home at the right level to ensure your home gets not only the highest level of occupancy but also good quality guests (in order that it achieves the highest overall property income for you). We only earn when you earn, so our interests are aligned to get you the best results possible.
So: to find out how much your home could earn while you’re away, why not get in touch with UnderTheDoormat today?