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Did you know that as of March 2022, there have been 34,327 vacant homes in London alone? The growing number of vacant properties has not gone unnoticed by residents. In one survey, 46% of the respondents said that they noticed an increase in empty properties in the last 5 years. When asked what they think should be done to these derelict properties, Londoners (72%) suggested that they should be turned into community or shared spaces while the Welsh (76%) and those in the North East (71%) said they wanted it turned into residential homes.
This tells us two things. First, there’s a huge number of unused properties. Second, people recognise the need for more dwelling spaces.
It’s no secret that the UK has been struggling with housing issues for many years now. It’s even more frustrating because all these vacant properties offer an opportunity to solve the housing crisis.
Before that can happen, we need an effective strategy to turn these derelict properties into livable spaces.
In this article, you’ll learn about the flexible letting strategy that Opago offers and how it can be a viable solution to alleviate the housing crisis. You’ll also understand how the proper implementation of this strategy can help multi-property owners like you grow your portfolio significantly in the years to come.
How Flexibility Turns Vacant Homes Into Profitable Assets
The flexible method is a letting strategy that Opago uses to turn vacant properties into income-generating spaces. It’s a tried and tested approach that we’ve implemented several times and it resulted in significant rental returns for our partners.
Not only does this innovative strategy turn resource-draining spaces into rental properties, but it also uses data-driven technology to determine the right letting method for specific market conditions. This results in maximum rental returns and higher occupancy rates for the property.
So instead of an empty space, you’ll get stylish apartments that can be rented out as short-term accommodations, student accommodations or co-living spaces.
There are three main benefits when you use this type of letting method.
Increased revenue potential
The flexible letting strategy does more than just fill the vacant properties. It creates a steady stream of revenue that property owners can benefit from. All properties have the potential to become lucrative assets - you just need the right guidance for its transformation so it can increase the revenue potential of your portfolio.
Property maintenance and security
With void spaces transformed into rental units, they’ll stop being neglected or forgotten. As a short-term rental property, the constant turnover of guests would ensure that the flat will be cleaned and maintained between occupants.
If you choose a long-term letting strategy, the resident will take care of the property to keep it livable during their stay. The presence of guests and residents will also keep vandals or illegal dwellers from using your property - and maybe even destroying it in the process.
Ability to adapt to property dynamics
The property market is ever-evolving. To ensure that you can maximise your earning potential, you have to adopt a flexible method. This is where the flexible letting method can help. It’ll give your portfolio the agility to change according to the dynamics of the market.
It combines short-term, mid-term and long-term letting to respond to trends and evolving demands - allowing it to thrive and not just survive all the changes.
6 Reasons Why Flexible Letting is the Perfect Solution
If you have vacant properties in your portfolio and you have no plans of doing anything about it, you might want to pay attention to this. According to reports, local councils are starting to impose penalties on vacant properties. For instance, on January 16, 2024, the council in Haringey voted to charge property owners 200% of their Council Tax bill for properties that have been vacant for 12 months or more.
Don’t wait until these resolutions are implemented before you do something about your empty properties. You won’t just save money on these penalties and fees. There are 6 other reasons why using a flexible letting solution is beneficial in the grand scheme of things.
Increases the housing stock
With London struggling with a lack of housing supply, transforming your vacant properties would alleviate the stock problems. This will certainly be quicker than waiting for new housing developments to be completed.
Make your property re-enter the housing stock as a short-term or long-term rental property.
Provides housing options
When you fix your vacant property and make it available for Londoners, they get more housing options. Your property can be marketed as a residential property, student housing or co-living space. It can even be offered as a commercial space - if that is what’s in demand in that specific location.
Through the flexible letting strategy, your property can be offered as a short-term or long-term rental property. This will make it available to a wider range of demographics.
Boosts the local economy
Areas with more dwelling places attract more people to the community. If you add your vacant property as a space for rent, it won’t just benefit you through the generated rental income. It can also benefit the property management company or letting agents that you’ll work with. You can also boost the local economy since there will be more activity for nearby businesses. Where there’s more foot traffic, there is a higher chance of consumer spending.
Deals with homelessness issues
One of the effects of the housing crisis is homelessness. This can be addressed when you add vacant properties to the housing stock. You might not make your property available to social housing but you can lessen the pressure by catering to private residential demands.
This is an immediate solution to the homelessness problem - which will be good for the property market in the long run.
Uplifts the neighbourhood
Having more vacant properties makes a place feel desolate. Through flexible letting, properties will be transformed into livable spaces that will add vibrancy and life to the neighbourhood. With someone occupying the space, the property will be cared for. This will make it look more attractive instead of neglected.
Reduces urban decay
As properties are occupied and maintained so they’ll remain livable, it’ll help reduce urban decay in London. The flexible letting focuses on transforming and maintaining the premium quality of properties. This can breathe life into urban conditions to make it more progressive.
How to Implement the Flexible Letting Solution
Now that you understand the benefits of flexible letting as a solution, how can you implement it in your portfolio? Here are the steps that you can follow to get started.
Assess vacant properties
Start by assessing the vacant properties in your portfolio. If you have more than one, rank them according to their potential. That means identifying what properties are in high-demand locations and those that won’t cost a lot to renovate and transform into livable spaces. This assessment will allow you to make the right decisions as you integrate flexible letting into your investment plans.
Research the letting market
The next step is to find out where the letting market stands. This will give you relevant information that’ll help you decide how to make your property re-enter the market. Is there a high demand for private rental properties? Co-living spaces? Student accommodations?
You can also look at the specific needs of guests and residents so you can transform your property to cater to their exact needs.
Find out the legal frameworks involved
At this point, you should have an idea of what type of accommodation your vacant property will become. The next thing to do is find out the legal frameworks that you need to comply with. This will guide you during the renovation of the property (e.g. fire exits, alarms, etc.) so you can meet the standards of the local council.
Make sure you also look into the tenant rights and licensing requirements so you can work on compliance.
Comply with rental rules and regulations
With everything that you’ve researched to achieve full compliance with local regulations, it’s time to act on it. Focus on the rental rules and regulations and make a list of what you have to do. Work with necessary professionals to help with compliance so you can achieve more in a shorter amount of time.
With the right professional help, your vacant property will become available as soon as possible.
Collaborate with property experts
One of the easiest ways to implement a flexible letting strategy is by collaborating with a reputable property management company - specifically one that’s experienced in dealing with vacant properties.
You’ll need their expertise in transforming your property into a livable space - something that’s completely compliant and aligned with the needs of the housing market. The more experienced the property management company is, the more smooth and streamlined the transformation will be.
Use Flexible Letting to Alleviate London’s Property Issues
Using flexible letting to solve vacant property issues in London is effective and brings exclusive benefits to your portfolio. However, you have to make sure that you know how to implement it properly. You need to navigate the compliance and regulatory requirements so you can successfully make the transition and maximise the earning potential of having rental properties.
Opago offers flexible letting as an option for multi-property owners who want to transform their vacant properties into income-generating spaces. Our data-driven solution can help your portfolio grow while enhancing the premium value of your real estate assets. We’ll guide you every step of the way - making sure there’s complete compliance, maximum returns and streamlined rental operations.
If you’re ready to get this transformation on the road, contact us. Our property experts are ready to help repurpose your assets so we can unlock their full potential.