From bank accounts to working hours, flexibility is at the heart of day-to-day life in 2023. More and more, the public is choosing this new way of thinking, and at Opago, we believe that property should be flexible too. We’ve already talked about Buy to Flex and the advantages it holds, but we think that the market can go even further.
Read on to find out more about what’s happening in the industry, what we offer, and how flexibility can overcome potential challenges in 2023 and beyond.
Why Is Flexibility Important?
In 2023, flexibility is one of the most sought-after things for guests in the UK. Some of the reasons are outlined below:
Changing Circumstances
Renters' circumstances may change over time, such as a change in job location, family size, or lifestyle preferences. Flexibility allows them to adapt their living situation accordingly without being tied down to a long-term commitment.
Testing Different Areas
Renting allows people to test out living in different neighbourhoods or cities before deciding to settle down permanently. It gives them the freedom to explore different areas without the long-term commitment of home ownership.
Lifestyle Flexibility
Renting enables individuals to embrace a more flexible lifestyle. They can prioritise experiences, travel, or other personal pursuits without being tied down to the responsibilities of home ownership.
Uncertain Housing Market
In some cases, people may prefer to wait and observe the housing market before making a long-term commitment. Renting allows them to wait for a more favourable buying market or financial situation.
Short-Term Housing Needs
Some people require temporary accommodation due to work assignments, educational pursuits, or other short-term commitments. Renting provides a practical solution for these situations.
What’s on the Market?
While still new to the UK market, flexible letting isn’t a completely alien concept. At Opago, we already offer flexible solutions for portfolio owners, taking traditional assured shorthold tenancies (ASTs) and transforming them into fully flexible offerings.
As our business model has developed, this offering has diversified into four key areas, and we’ll explore each of them below.
Buy to Flex
High interest rates and changes in regulations, including the upcoming Renters’ Reform Bill, are both having an impact on the traditional build-to-rent model. Returns and occupancy rates are typically lower, and investors are starting to notice the reduced profitability of traditional AST lets.
However, Opago’s flexible solutions mean that higher returns are within reach. By targeting key months and offering a mixture of short and medium-term lets, our team helps you to increase your returns year on year. To ensure the success of this model, we also provide operations to back up these services, including maintenance, housekeeping, compliance, and guest services, all of which can be white labelled where required.
Void to Flex
Our second offering is targeted at property owners that have expected voids. Student accommodation is big in this space, with vacancies typically expected between July and early September as students will have moved back home. The Void to Flex model fills voids with short stays that increase portfolio profitability. This includes full end to end service from sourcing guests, revenue management, marketing, and full operations where required.
White label options are also available for this service.
Build to Flex
As with the Buy to Flex model, this Build to Flex model looks to overcome some of the challenges associated with traditional letting strategies. Increased interest rates and potential complications from the Renters’ Reform Bill are issues for build to rent developers, with both affecting the profitability of traditional ASTs. However, we believe that these issues can be tackled with our Build to Flex model.
We help developers to re-appraise their properties, providing greater opportunities for increased yields, including tapping into new-style, mixed-use developments. Supported by our far-reaching operations, flexible letting provides higher returns with managed risks.
Let to Flex
This is the simplest Opago offering - we transform a full AST portfolio into a collection of flexible offerings. Our team takes you through the full process from re-appraising your properties and marketing them effectively to welcoming guests and supporting you with operational excellence.
By transforming your full portfolio, you stand to near-double your returns. Typical increases are between 30 and 40% when trusting in Opago’s flexible models, with full projections available during a bespoke consultation.
Ready to Learn More?
At Opago, we specialise in providing flexible solutions that increase your returns. Our solutions have already transformed how companies in London, Barcelona, and Paris operate, and you could be the next to take advantage of our first-class services.
Get in touch with our team today to discuss how you could take advantage of the flexibility that renters crave in 2023.
