Discover 4 ways flexible real estate solutions can enhance asset value, boost profitability, and adapt to changing market demands. Read our blog today.
But what exactly do we mean by that? To us, the answer’s simple. Flex-use properties backed by tech-enabled platforms can shift a property’s use between stay lengths: like multifamily leases, short-term rentals, and nightly hotel stays. This allows owners to maximize the utilization of their assets based on market demand. The result? You reap the greatest returns through cycles and seasons.
Below, we’ll discuss four advantages of flexible real estate and explain why you should consider implementing it immediately.
Incorporating the best parts of hospitality into your current operating model, furnished units can be used as short-term rentals or hotel-type units, leading to higher revenue per unit rather than running it as a multifamily building. Additionally, hotel-type stays during peak seasons drive up occupancy and average daily rate. All these elements will translate into your asset becoming a cash-flowing machine.
Harnessing the power of low-cost, tech-enabled operations can drastically lower your operational expenses compared to a typical hotel model. Not to mention, having fewer staff on-site, supported by a remote shared services team, allows you to reduce operating costs while still creating a seamless experience for guests and residents by relying on a small yet nimble on-site team.
Leveraging both the upside of hospitality unit revenue and the stability of multifamily leases, owners can generate higher, stable profits. In addition, you can use multifamily leases as a base and flex your remaining units through cycles and seasons to generate higher income.
Converting your current operating model to embrace the flexibility of mixed-used assets helps owners benefit from lower debt terms of multifamily and higher yields of hospitality. As a hotel and a multifamily operator, you can generate hotel-like revenue and do unfurnished business, too, which could ultimately make your debt less and less expensive.
In short, flexible real estate is a powerful way to capitalize on market fluctuations and the latest trends in the hospitality and multifamily industries. By adopting a flexible real estate model, you can increase your asset value, generate stable income, and reduce operating costs.
Companies that adapt to these emerging trends will reap the most rewards, and those that don’t will become relics of an old way of doing business.
The future is all about about creating spaces that are truly flexible to be used for an array of customer types — commingled spaces.
Consumer expectations have evolved, technology is more efficient, and the pandemic has introduced a new way to live, work, and play.