Rental yields from residential property vary enormously. Whilst the North West has consistently delivered some of the highest average annual buy-to-let yields of sometimes beyond 6%, some areas of our capital deliver averages as low as 1% per annum.
And with this comes the responsibility for maintaining the rental property, finding and looking after tenants and dealing with the headaches that come with it.
‘Lusso’ by Huntsmere is a managed rental property solution, where not only is each unit in the building designed and delivered with rental in mind, but the building itself is filled with facilities and features which support the life and lifestyle of its residents and allow the apartments to be maintained and serviced to the highest standards.
This gives an opportunity for investors to participate in the lucrative world of residential rental, but without the headaches of doing it alone.
But residential investing has changed. The best returns are no longer achieved by simply letting a property to an individual, couple or family for a six or twelve month slot. Rental requirements vary enormously from the leisure traveller, who needs a property for just a few nights ; to the regular business traveller, who needs the same property for the same nights each week ; to corporations, who need to be able to provide a base for different people throughout the year ; even to families, who need a property for a few months, due to a change in circumstances or in response to an emergency.
There are an unlimited set of circumstances that are not generally catered for by the traditional assured shorthold rental model.
Nothing illustrates the scale of this market requirement better than the recent growth and success of Airbnb. As a hosting platform for almost any type of residential property, it allows property to be rented from as little as one day upwards. Following its relatively recent launch in 2007, Airbnb has seen stratospheric growth, with the company generating in excess of $1bn in corporate revenue in the third quarter of 2018, equating to client revenue of in the region of $100bn for the year.
Notwithstanding its dominance, Airbnb is far from being the only operator in this market. It is one of literally dozens of platforms offering short term rentals. This approach essentially gives access to the sector of the market that was previously the exclusive domain of the hotel industry and allows individuals to access markedly higher rates of return.
The challenge for individuals is that access to this model brings with it even higher service expectations than buy-to-let and for the average person, this standard is impractical for them to meet. ‘Lusso’ by Huntsmere is specifically designed to operate in both the buy-to-let and short term letting sectors and its managed solution allows investors to participate without needing to be ‘hands-on’.