As global travel corridors open, the staycation market in the UK is beginning to feel the losses as people choose to holiday abroad rather than at home. Coupled with the increase in fuel — due for a significant increase from next month — you may be considering how to protect yourself against potentially narrower profit margins.
Fortunately, with the weather improving, the full impact of the energy pricing increase will not be fully felt until we head back into the quieter, cooler months. And as a Property Manager, this gives you time to begin to mould the narrative with your owners.
Sustainability is Key
Renewable energy is going to become the key solution in continuing to deliver the kinds of returns your owners have come to expect. Over the coming months, think about your portfolio and which of your properties would lend themselves best to adaptation to solar panels, air-source heat pumps, home batteries, or other renewables, and begin the conversation around future-proofing your owners’ investments. Give your owners tips on how they can reduce their energy use with this Energy Efficiency Calculator, and suggest they look into the Home Energy Grants available to all.
For example, installing solar panels could reduce the carbon footprint of the holiday home by up to 80% over the course of a year. Plus, they can reduce the electricity bill, according to the Energy Savings Trust, by £120 to £310 a year.
Keep Up With Consumer Trends & Demand
Consumer desires drive markets, and holiday consumers are no different. Today’s energy-conscious travellers are discerning customers who more and more are looking for sustainability when planning their holidays. People want to see what efforts have been made to reduce the carbon footprint of a holiday home, and your homes will stand out from the rest with renewable energy.
Retain Your Owners By Having These Conversations Early
If your owners have not considered renewable energy, there is a danger they may look to pivot their business and look to change their short-term rental to a long-term rental. They might be thinking that they would rather push overhead from rising energy costs to longer-term tenants, passing the responsibility of increasing bills directly to them.
Your business relies on client retention so by proactively talking to your owners, you may significantly reduce the possibility of an owner turning their back on the short-term rental market. This would be a good time to review your pricing strategy with your owners too, specifically taking a look at your minimum prices. It’s important to reassess the minimum prices on your listings as your costs and overhead change to ensure that no one takes an unprofitable booking.
With government grants to be taken advantage of, there has never been a better time to steer your owners to invest some of the income from their short let stays into their future revenue prospects. Engaging your owners early in this way not only reminds them of your proactive qualities as their property manager, but also starts an inevitable conversation around how best to deal with ever-changing environmental changes and ever-increasing overheads.
We are here to help
It is important to communicate and demonstrate to your owners the value you bring to them and their properties. Using Beyond to help show market data, demand trends, and the other tactics you are implementing will strengthen the quality of your owner communications, and build trust. Get our best-in-class data at your fingertips today!