Turning vacant units into a 21% yield premium
Ten apartments at a prime London Build to Rent estate, run as a fully managed short-term rental operation. The result was a premium income stream that held occupancy through London's weakest months without disrupting the resident experience.
- Sector
- Build to Rent
- Market
- UK
- Service model
- Fully managed
- Delivered by
- Group, with Hospiria and TrustedStays
Testing short-term demand
In March 2022 UnderTheDoormat Group began operating five units at a prime London Build to Rent estate, scaling to ten over the first year, to test how successful a short-term rental operation could be.
The goal was to prove that short-term rentals could out-perform a comparable long-term benchmark and hold occupancy through London's weaker seasons, all while complementing the premium resident experience rather than disrupting it.
A fully managed short-term rental operation
We managed a diverse portfolio of studios, one, two and three-bedroom apartments, setting up every unit to be guest-ready and optimised across our extensive booking platforms. We delivered dynamic nightly pricing sustaining strong occupancy all year, including quieter months such as November and January.
Guests were pre-vetted and supported throughout their stay via our concierge team, and the client had access to commercial performance in the Hospiria PMS. The operator also became one of the first live buildings in UK residential real estate on the Global Distribution System (GDS) through TrustedStays.
The portfolio
Strong occupancy and premium rates
The portfolio delivered consistent, high-value bookings across the period, driven by strong business-travel demand, a shortage of comparable supply, and dynamic pricing that captured peak rates without sacrificing occupancy. This was delivered while also aligning on strategies such as a higher minimum length of stay to support the community.
Occupancy and ADR by unit type
| Unit type | Bookings | Occupancy | ADR |
|---|---|---|---|
| Studio | 162 | 88% | £165 |
| One-bedroom | 46 | 82% | £221 |
| Two-bedroom | 158 | 85% | £317 |
| Three-bedroom | 2 | 100% | £615 |
Average net earnings per unit, per month
Proven upside for Build to Rent
Short-term rentals turned available apartments into a premium income stream while maintaining high occupancy and excellent guest satisfaction. Delivered as a fully managed service, the model integrates into an operator's leasing strategy with minimal disruption and demonstrates how flexible rentals can form a core part of the asset lifecycle for a Build to Rent portfolio.
A higher yield per unit
Short-term rentals delivered 21 to 35% more net income than a comparable long-let across every unit type.
Occupancy all year round
Occupancy held between 82 and 100% even through traditionally quiet months such as November and January.
Guests who love the stay
A 4.74 out of 5 composite review score reflected a consistently high standard of service and product.
Seamless to integrate
A fully managed, plug-in service that complements the resident experience rather than disrupting it.
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