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The UK is a popular destination for international students. According to government statistics, one of the main reasons why people choose to migrate to the UK is to study. More than a third (33.9%) of these students have chosen to pursue their education in London.
Why is this relevant to the property market? It proves the huge demand for student accommodations - specifically in London. As a property owner, this can be an untapped revenue potential for you. Being a student accommodation provider gives you a huge market to cater to. Students come in from all over the world and they need a safe and comfortable space to stay in while pursuing a higher education.
As promising as that may be, there’s one problem that student accommodations struggle with - summer void periods. When the term has ended and students go home to take a break, properties are left empty for weeks and months.
What can you do about that?
In this article, you’ll be presented with a viable solution that can help you maximise your earning potential as a student accommodation provider. You’ll discover a specific letting solution that can deal with the summer void period plus tips to implement it so you can enjoy high occupancy rates throughout the year.
The Summer Void Problem
Just how big is the student accommodation void problem during the summer? Let’s do the math.
The number of international students in the UK from 2021 to 2022 was recorded at 678,970. If one-third of these international students go to London, there are over 205,000 students in the city. These are all living in some form of student accommodation.
If these students decide to go home during the summer break, that would leave more than 200,000 accommodations empty for a couple of weeks or months.
How much of a loss would that be?
According to reports, student accommodation providers in London earn approximately £2.6 billion a year. The monthly income differs depending on the location but the average price of rent for students is £1,788 in Oxford and £1,544 in Bristol while it’s £728 in Buxton and Allestree.
With the summer break taking 2 months or so, this would mean losing an estimated £1,500 to £3,500 worth of rental income each year - per student accommodation. Let’s assume that only half of the 200,000 international students in London decide to leave their accommodations empty - that’s still a £150 million to £350 million loss.
That’s a huge amount to ignore.
Fortunately, there’s a way for you to avoid the loss brought about by a vacant property. Turn it into a summer rental for people who work from anywhere - the Workation market.
Offer Short-lets for the Workation Market
The Workation market is a play between work and vacation. These people have online careers that allow them to travel the world without compromising their source of income. Think about digital nomads. They love the flexibility that comes with visiting different places and having a profession that finances their chosen lifestyle.
How can they help student accommodation providers with the summer void periods?
First, student accommodations are empty for 2 months. You can use this time to advertise your rental property or space for short-term letting. This type of letting strategy rents out a space for less than 20 days - sometimes, a couple of weeks or days at a time.
Second, the Workation market doesn’t stay in one place for long, making them the perfect market for short-lets. Usually, they stay for only 1 to 2 weeks before they move on to their next destination. You can have the place vacant and ready for the student market before the next school term starts.
Third, the Workation market needs the same things as students - a sturdy Internet connection, a quiet place to focus and do their work or study and a safe place to stay.
Fourth, London is a popular tourist destination during the summer season. One airline survey revealed London as the top summer destination for Americans. You can expect that London would be one of the top places to visit on a digital nomad’s list.
Fifth, short letting offers a higher income potential. You don’t charge the rent per month. You do it per night and that increases your overall revenue.
These are only a few reasons why the Workation market can help you solve your summer vacant property problems. They are the perfect profitable replacement for your student renters during the summer break.
Tips to Turn Properties from Student Lets to Workation Spaces
Now that we’ve established how the Workation market is the perfect solution to the summer void problem of student accommodations, it’s time to deal with another challenge.
How do you turn properties from student accommodation workation student lets into workation spaces?
Physically, there’s no need to change anything. As mentioned, the needs of students are the same as the workation market. What you have to change is your marketing and pricing strategy.
Here are 5 tips to help you promote workation short let properties.
Market the student accommodation on the right platforms
If your property isn’t on Airbnb, it’s time to start marketing there. The Workation market won’t browse student letting platforms. You need to put your property where they can see it.
If you don’t have it yet, create an Airbnb profile. Or you can use other platforms like Booking.com or Expedia. Choose platforms frequented by digital nomads and remote workers to reach the market you’re trying to attract.
You can also boost your social media marketing efforts. Post photos of your property and call out to the Workation market.
Update the property listing
The first impression is crucial in any marketing strategy. If you want to attract a new market, you have to update your property listing. If you already have a profile on shortletting platforms, update the information shown on it so your target market will get the right first impression. Change the availability so your target market knows it’s available for a couple of months. This will increase the chances of getting a booking.
Ideally, make the update before the summer period so the Workation market can book a stay ahead of time.
Create the right message
Change the headline and description of the student rental in property listings. Think about what the Workation market wants from a rental property. This would include a functional workspace, proximity to outdoor activities, a sturdy Internet connection, etc.
Do your research to see what trends attract this market at the moment. If they are eco-conscious, market your property as a sustainable space they can stay in. If this market loves flexibility and freedom, that’s the message you should give them.
Write a headline that resonates with the new market that you’re trying to reach.
Highlight property features that appeal to the Workation market
As you change the marketing message to promote your property, focus on the features that will appeal to the Workation market. The workspace, Internet connection and comfortable amenities are a great way to start. But don’t limit yourself to that.
Mention what the neighbourhood and local community has to offer. Although you’d like guests to have everything they need inside your rental property, you also want to highlight the life they can enjoy outside of it. After all, the Workation market likes outdoor activities as well. Highlight nearby parks and outdoor events. If there are fitness centres or a popular hangout spot, make it known.
Show them how your property and the community around it provide a seamless integration between work and leisure. This will increase the appeal of your rental property.
Use dynamic pricing strategies
Implementing dynamic pricing strategies can lead to more bookings, longer stays and maximum earning potential for your student accommodations. You don’t have to follow the same pricing strategy as what you give student tenants. Research the typical rental prices during the summer season. This is usually higher because London is one of the top summer destinations in the world. Raising prices is justified - but you can take this a step further.
To increase the income per booking, encourage longer stays. Offer a discounted rate per night. Provide distinct rates between stays that last for a weekend, 2 weeks and a month. This will minimise the vacancy rates of the student let.
Partner with Property Experts to Transform Student Lets
Student accommodations have an untapped potential to earn during the summer break. Don’t limit your investment returns because of the summer void problem. Change your letting strategy to include the growing Workation market. Update your property listing and highlight the right features to attract digital nomads. Write a compelling message that’ll resonate with the type of lifestyle that the Workation market leads. Combine this with a dynamic pricing strategy and you’ll improve the income potential of your student lets this summer.
Partnering with an experienced property management company like Opago will help you transform student lets into workation havens. Use their expertise to make it a smooth transition. Opago offers more than property management services. You can benefit from the flexible letting strategy used to maximise the monthly income of student accommodations.
Find out how Opago can turn your vacant student lets into profitable spaces for digital nomads. Contact us so we can talk about how we can maximise the income potential of your property all year round.