Short lets (termed serviced apartments in the US and Asia) have huge business potential. A relatively new entrant into the London property scene, they are gaining popularity among visitors looking for a "home away from home".
A re-examination of the revenue this hospitality segment generates has convinced property owners and real estate marketing companies that this avenue is worth exploring further.
The JLL Report highlights that short lets comprise less than 10% of the total room inventory in the capital, indicating significant scope for short let accommodation in London.
Benefits of investing in a short let include stable cash flow, greater revenue mobilisation (compared to long-term rentals), lower property development cost and a high profit margin.
Short lets look set to evolve into mature mainstream hospitality products providing a dependable revenue to owners of second homes and professionals looking for new business opportunities.
Short lets are starting to be seen as a good investment opportunity by property owners because of its high profit margin, stable cash flow, high space efficiency, conversion flexibility and lower development cost.