Finding the right apartment to invest in for rentals

[Susan4069]

Hi, I am looking to become a host.  After inheriting some money, we decided to invest in a city centre apartment in the UK for a furnished holiday let for city breaks/business use.  We are short listing our purchase and would like some advice for the more experienced community.  We have found a great period property (grade II listed) with a fantastic city centre location, quirky and recently converted so bathroom and kitchen are still very nice.  The only issue is that it is on the 4th floor with no elevator.  Views across the city are great, but would the lack of a lift put people off booking/return/giving a good review?  Grateful for any advice you can offer.

[Angelica-Y-Jorge0]

@Susan4069 congratulations on your new purchase it sounds beautiful.

My advice would be to make sure you are open and upfront about the stairs in your listing. Even add photos of the stairs so guests know what to expect. Our listing is on the second floor and I watch many people struggle with luggage. I always ensure I'm there to meet them and help them carry their luggage up if needed. 

I would install a workspace or office and strong internet to attract business travellers. They usually travel lite and not with their family making it an easier stay.

Hope this helps. Can't wait to check out your listing.

[Sarah977]

@Susan4069  As Angelica has said, just be really clear about all the stairs. Don't bury that information somewhere near the end of your listing info, because many guests don't bother to drill down and read through all the information. 

Put it front and center in the beginning of the listing description- "Please note- there are four flights of stairs to climb, and no elevator, to access this unit, but the view is terrific and it's great daily exercise. Please do not book this listing if the stairs will be an issue for you."

You might think this is counterproductive to getting bookings, but it will eliminate the guests who would complain or leave a bad review, and the guests who are spry, in good physical condition and won't mind will book, which is exactly what you want.

One mistake a lot of new hosts make is trying to appeal to everyone. Much better to concentrate on a target market so you don't have to worry about trying to please everyone, which is impossible, anyway. No place is perfect in every respect.

My place is a 20 minute walk into town and the beach, and I don't get guests who drive here. Most all say they enjoyed the walk and that it provided them with exercise for the day. What is a negative for some guests can be a positive for others.

[Alexandra316]

@Susan4069 yes, that many stairs can and will put some people off and deter them from booking. It can also affect your reviews even if you're super clear about them, absolutely. Some people don't pay attention and others will look and fall in love with the nice historical accommodation but then feel less romantic about it when they're schlepping their suitcases up 4 flights of stairs. 

A big deciding factor for me would be the occupancy rates of other properties in the area. If most Airbnbs are booked consistently, that's a good sign that your place will get bookings. If the market isn't that busy or there is a lot of competition, you are immediately excluding a segment of the market before you even get out of the gate. While I agree with @Sarah977 that there's no need to be all things to all people, it does narrow your market, and if it's very competitive that may not be good. However, there will be other guests who are attracted to the historical charm of the building and the view, so that may offset the number of people who would be deterred. I'm sure you have already done research on the market, but besides the Airbnb site itself, there are a variety of companies like Airdna and Wheelhouse that can help you out. 

Regardless, the property sounds lovely and I hope you find a way to make it work. I love the diversity of properties and Airbnb and I'm glad that they're not all basic modern apartments. 

[Helen3]

I host in Bristol so understand the English city market well. @Susan4069 

Personally I would not invest in this sort of apartment if your sole purpose in having it is as an STR apartment 

Both as leisure and business travellers few will want to walk up and down that many stairs multiple times a day, - so you will put off travellers at a time when the STR market

in many cities in the UK has dropped massively because of Covid.

And grade 2 restrictions will limit what you can do with the apartment.

As a business owner you need to think with your head not your heart and buy what works best for your target customers. 

my first Airbnb was in a converted Victorian hotel in Bristol with beautiful high ceilings and sash windows but it was on the ground floor. 

[Paul1255]

Hi @Susan4069  I hope you’re well.

I manage a penthouse apartment in central London, you can see the London Eye from the bedrooms- it’s lovely!

The downside is it’s on the 4th floor of the building and there is no lift. It’s a new build so it has wide stairs and landings so getting up there isn’t as challenging as an older building might be.

I mention the walk-up nature and the top floor location of the apartment and lack of lift several times in the listing body, as well as the post-booking message to guests, so it is very clear to most guests before they arrive.

A few guests have cancelled straight after booking after realising the situation, a few have even turned up and been surprised when there is no lift 🙂

Would you want to live in this apartment full time and do all the walking up and down the stairs, probably not- but for a city break of a few days guests don’t mind, and in fact love the city views!

There is no perfect Airbnb apartment- the building of the listing I manage contains several Airbnb listings, and there is one on the ground floor- I’ve looked at the reviews and guests complain about hearing the main building door open and close, and not being able to open the windows as they look onto the street, and hearing people walking past the windows when they do.

The important thing to do is understand your market- who visits your city, what their age might be, will they value the city centre location, are the city views a great pay-off to the climb up to the apartment and so on.

Best wishes 

Paul 🙂 

[Helen3]

Great advice @Paul1255 

I agree it depends who your target customers are. Younger couples may not mind the walk. Families, older people and business people are much more likely to.

As @Susan4069  is still choosing a property I will stick by my advice that it would be better to consider a place more likely to appeal to the majority than the minority - particularly with the overseas market being decimated because of Covid.