In a city as competitive as London, finding a property that truly stands out in the short-let market can feel like a challenge. However, there’s a tried and tested formula known as the “magic triangle” that can help guide your decision-making. This focuses on three key factors: location, size, and price.
Location
This is perhaps the most important element for guests visiting London. Most short-let guests are tourists staying for around six days, and they typically look for accommodation that is centrally located and within easy reach of the city’s major attractions. But more than anything else, being close to a tube station, ideally within a ten-minute walk, is essential. Unlike locals, tourists usually don’t rely on buses, so tube access is a real priority. Depending on your budget and how often you plan to use the property yourself, you might find certain areas better suited to your needs. However, areas like Pimlico, Covent Garden, and South Kensington are especially popular with tourists due to their proximity to key attractions. If you’re targeting corporate guests, then locations like the City or Canary Wharf are ideal, while family-friendly areas like Richmond and Chiswick tend to appeal to those traveling with children.
Size
London offers a broad variety of property types, ranging from studios to townhouses. While larger properties can charge higher nightly rates, it’s worth noting that one to three-bedroom flats are the most consistently booked throughout the year. Bigger homes may experience lower occupancy in quieter seasons. It is also worth thinking creatively about the space. For instance, if you buy a 2 bed property, adding a sofa bed in the living room can offer more flexible sleeping arrangements, helping you accommodate more guests and increase your occupancy over time.
Pricing
Competitiveness is key. The short-let market in London is heavily influenced by dynamic pricing, which takes into account things like local demand, the time of year, length of stay, and how far in advance bookings are made. When your property is new and still building up reviews, you may need to start with a lower rate to attract your first few guests.
Guest feedback can significantly influence how well your property performs in the market, therefore beyond the basics of location, size, and price, it’s also important to think about the overall guest experience. Housekeeping should be thorough and reliable, and any maintenance issues must be dealt with quickly to avoid complaints. Guests today expect not just a clean and comfortable place to stay, but a smooth and seamless experience from booking to check-out. Even if your property is perfect, poor service can lead to negative reviews, which in turn can affect your future bookings. At Veeve, we manage the whole process for you, from the professional photoshoot, to walking you through fire safety regulations and our dynamic pricing. We only ask you manage your calendar and to let us know when your property is available for bookings!
Lastly, if you’re considering buying a property specifically for short-term letting, be sure to check whether your lease allows it. Unless you’re purchasing a freehold or a share of freehold, some leases have restrictions on short-term rentals, and it’s important to understand these before making a commitment.
If you have any further questions, please feel free to contact our team today for more information on the short term rental property market.
