Case Study
How we helped a Build to Rent Client achieve 21% higher net income using flexible rentals
The challenge they faced
A leading Built to Rent (BTR) operator in London was struggling to monetise some unit types that were having less success on the long-let market. The leasing market was particularly challenging at the time, and several units were not occupied. The client was keen to find a way to generate the monthly income required without dropping its target rental rates.
Our solution
UnderTheDoormat Managed provided its combination of short and mid-let stays for a range of units, including studios, one-beds and two-beds.
Our end-to-end management service onboarded the properties and ensured they were ready for guests stays, optimised them on multiple booking platforms, and provided dynamic nightly pricing to maximise revenues. We also delivered in-stay services for guests such as personal check-ins and on-call response to ensure a smooth experience for the guest, the asset owner and other residents.
By partnering with UnderTheDoormat, the operator minimised void periods, utilising the empty space to generate extra revenue. By capturing the flexible rental demand in the market, revenue was consistently driven up on these parts of the portfolio.
Our impact
UnderTheDoormat took the available units to market using its proprietary distribution technology system, Hospiria. This system provided the operator with its own login so they could see real-time performance and guest activity – including check-in/out, scheduled cleaning and more – so on any given day they could have visibility on the footfall coming through the building’s foyer.
In the first month after launch the empty units had achieved an occupancy of 76%, and in a full year of operation the occupancy rate has averaged 87% across all units. By the end of 2023, occupancy was at 86% with an average length of stay of 9.5 days, and the portfolio allocated to UnderTheDoormat Managed had more than doubled – seeing a 140% increase in number of units. In 2023, our strong brand awareness in the short-term rental market helped deliver 31% of direct bookings; this has increased to 40% in 2024 so far.
Additional benefits
In addition to the commercial benefit, we were able to provide the client with a turnkey solution that made the process easy. In this instance, with a year-long trial, we were able to fit-out the property and recoup the outlay from booking income, ensuring that the client did not require any up-front spending.
Our end-to-end managed process ensured that everything relating to the guest stay – from cleaning, linens, personal check-in and on-call responses – were provided by the UnderTheDoormat team, working in collaboration with building management to minimise impact on their daily activities and protecting the resident experience.
Demand for more flexible stays was so high that some guests have since transitioned to long-term residents within the same estate, and invited their friends to do the same! This demand shows no signs of slowing down, showcasing the potential for short-term rental guests to be converted into long-let residents.
Meanwhile, the sense of community offered by BTR and flexible rentals helps attract other potential residents – and current tenants have several options to host friends and family within their block.
In addition to generating occupancy and income, the client was able to use TrustedStays to connect to the Global Distribution System - amongst the first in the world to bring apartment inventory onto this $50bn annual accommodation platform previously only accessible by hotels.
