Property Management

Part
01
of six
Part
01

Residential Rental Market - London

While the number of residential housing units available for rent in London is declining, the number of households living in private and social rental housing are increasing. The average price of residential rental housing is also increasing. The average monthly rent in London increased by 8.2% to £2,093 between 2018 and 2019.

NUMBER OF UNITS AVAILABLE

  • The number of residential housing units available for rent in London was 39,746 in August 2018.
  • In August 2018, the number of residential rental homes in London was at its lowest level since March 2015 and rents increased by 4% between August 2017 and August 2018.

NUMBER OF RENTAL TENANTS

  • Foxton reported that there were almost 175,000 registered tenants in London in 2018.
  • Around 27% of rental households in London are private and 21% are social rentals in 2017.
  • Approximately 79% of private tenants are satisfied with their housing and 58% are satisfied with renting privately.
  • A survey showed that 73% of social tenants are satisfied with their housing and 74% are satisfied with their social renting tenure.
  • AVERAGE RENT

  • The average rent in London was £2,093 per month as of the first quarter of 2019, an increase of 8.2% over the first quarter of 2018.
  • The rising rental price is believed to be due to the fact that demand is exceeding supply in London.
  • Tenants in London paid, on average, 44% of their income in rent in 2017/2018.
  • MARKET GROWTH

  • The proportion of households that rent privately in London increased from 15% to 25% between 2000 and 2011.
  • Between 2011 and 2017, the proportion of households that rent privately in London increased from 25% to 27%.
  • Between 2011 and 2017, the proportion of households in social rent situations in London increased from 20% to 21%.
  • The number of residential housing units available for rent in London decreased by 24%, from 52,388 in August 2017 to 39,746 in August 2018.
  • An average yield of only 3.7% in London as of August 2018 appears to be a major reason why landlords are leaving the London rental market. The average yield across mainland UK is higher at 4.7%.
  • AGE OF RENTERS

  • The number of private renters in London who are aged 45-64 has more than doubled within the past ten years.
  • The number of private-renters in London aged 65 or more could become double between 2014 and 2039.
  • From mid-2016 to mid-2017, the number of 30-34 year-olds living in London decreased by 9,000 while the number of 25-29 year-olds decreased by 21,000. 
  • By age 30, 40% of people who were born between 1980 and 1996 lived in rented housing in London. This is twice the proportion of the previous generation.
  • Part
    02
    of six
    Part
    02

    Residential Rental Market - Lisbon

    The number of long-term residential rental units available in Lisbon is 4,820. Below are our helpful findings and detailed methodology.

    RESIDENTIAL RENTAL MARKET LISBON- USEFUL FINDINGS:

    • The number of long-term rentals (houses and flats) available in Lisbon is 4,820.
    • The average monthly rent of Lisboa apartments is €1,578 and the rental yield is 5.45% p.a.
    • The average monthly rent of Lisboa houses is €1,797 and the rental yield is 5.43% p.a.
    • The market size of long-term residential rentals in Lisbon is €8,133,750. (calculated)
    • Over the years, the real estate property market in Portugal has seen a growth of 60% from 2015.
    • Landlords in Lisbon are renting out residential properties for short term as they see it as more profitable compared to long term rentals.
    • Homeowners prefer short term rentals as the tax they pay for renting to tourists is cheaper than renting to locals.
    • There has been decline in the long-term residential rentals market in Lisbon due to growth of short term rentals for as more people are renting out their properties to tourists.
    • The long term rental housing stock in Portugal shrunk by a third from 2011-2015.
    • The residential rents in Lisbon rose by an average of 7.6% between 2014 and 2015.


    CALCULATIONS:

    • The number of long-term rentals residential units available in Lisbon is 4,820.
    • Average monthly rent of Lisboa apartments is €1,578.
    • Average monthly rent of Lisboa houses is €1,797.
    Therefore, the average rent is (€1,578 + €1,797)/2= €1687.5
    Market size of long-term residential rentals in Lisbon = (Number of long-term rentals residential units available x Average residential rent) = (4,820 x 1687.5)= €8,133,750
    Therefore, the market size of long-term residential rentals in Lisbon is €8,133,750.

    RESEARCH STRATEGY

    We could not find information on the overview of the residential rental market in Lisbon, Portugal like growth, age of renters, among other relevant information. Therefore, we used the following strategies trying to find this missing information.
    We began our search by looking for research reports on Lisbon rental market with a specific target to find information on long term rental. We looked for information on sites like Knight Frank, RICS, among others. Unfortunately, this strategy could only provide the overall real estate market, its demand, growth, among others, and not the long-term residential rentals market. Also, we looked into the overall rental market reports on these sites for Lisbon because we found that research reports on Lisbon long-term real estate market were limited. However, we could not find any relevant information pertaining to the long-term real estate market. We had thought this strategy may work because reports from the above websites contain information on the long-term rental market.
    Next, we looked for information on the rental companies/aggregators on the long-term rental in Lisbon. We looked for information on sites like Idea Lista, Long Term Lettings, Nest Pick, among others. Using this strategy, we could find information on the number of long-term residential rentals available in Lisbon, however, there was no information found on the other details like the age of renters, growth, among others. We had thought that this strategy may work as these sites provide listings for houses for rent, sale, among others, and may have published reports on the long-term residential rental market in Lisbon.
    Finally, we checked for information on media publishing websites with a particular aim to spot relevant information about the long-term rental market in Lisbon. We went through sites like The Portugal News, Straits Times, among others. This strategy did not work as the information found was about the decline in popularity of long term rentals, among others. We had thought that this strategy may work as news sites publish articles about various industries and may have included stats about the long-term residential rental market in Lisbon.


    CONCLUSION

    Since there is limited information available on the long-term residential market in Lisbon, we have submitted this request as Partial Client Update.
    Part
    03
    of six
    Part
    03

    Short-term Rental Market - London

    The short-term rental market in London has grown significantly and is now causing a drop in the city's long-term rental property supply. Despite the cap that the city government has placed on short-term letting, the market has continued to demonstrate strong growth especially in terms of the number of listings it has and the number of guests it serves.

    NUMBER OF UNITS AVAILABLE

    • London has around 72,218 short-term rental listings.
    • London has around 8.2 short-term rental listings per 1,000 residents.
    • On average, short-term rental listings in London are let or rented for 40 nights in a year.
    • The London boroughs with the highest number of listings are Westminster, Tower Hamlets, Hackney, Kensington & Chelsea, and Camden.

    AVERAGE RENT

    • Median rent or price per night at a short-term rental property in London varies depending on the number of accommodated guests.
    • Median rent for two guests per night is around £50.
    • Median rent for five guests per night is around £150.
    • Median rent for 12 guests per night is around £300.
    • On average, an Airbnb room in London costs around $179 per night, around $38 cheaper than that of a hotel room.

    MARKET GROWTH

    • During the period April 2015 – July 2018, the number of short-term rental listings in London increased by 292%.
    • The number of overnight stays at Airbnb listings in London grew by 45.1% in 2017.
    • Airbnb's share of overnight stays in London almost tripled in 2017, with its market share rising from 2.8% in 2016 to 7.6% in 2017. London was one of the key markets of Airbnb in 2017.

    BREAKDOWN OF UNITS

    • Around 54% of short-term rental listings in London are for whole homes, while around 46% are for rooms.
    • Approximately 45% of short-term rental listings in London are from hosts with more than one listing.
    • An estimated 70% of short-term rental listings in London are apartments, while the rest are houses or less common property types such as yurts or bed-and-breakfast properties.

    MARKET SIZE

    • In the year leading to July 1, 2018, the short-term rental market in London was around £1.3 billion.

    NUMBER OF GUESTS

    • London has around 2.1 million short-term rental guests in a year.
    • The number of short-term rental guests in London has grown at a year-on-year growth rate of around 49%.

    AVERAGE LENGTH OF STAY

    • The average length of stay at a short-term rental property in London is around 4.6 nights.

    SHORT-TERM LETTING CAP

    • Short-term letting of entire residential homes in London is limited to at most 90 days in a year. This cap has been in place since 2015.
    • The London government placed a cap on short-term letting to prevent the depletion of long-term rental property stock or supply.
    • In 2017, Airbnb decided to voluntarily implement the 90-day limit in London.
    Part
    04
    of six
    Part
    04

    Short-term Rental Market - Lisbon

    The short term rental market in Lisbon has a total of 10,215 availale units and generated $9,627.56 million (€8,526.3 million) in revenue in 2017. The market grew from 2015 to 2017 at a CAGR 30.28%. Short term rental market average rent in Lisbon as of 2017 was $108.96 (€96.5). The market hosted 6,176,600 guests and recorded 14,324,100 stays.

    NUMBER OF UNITS

    • The total number of available short term rental units in Lisbon as of 2017 was 10,215.

    MARKET SIZE

    MARKET GROWTH

    • In terms of unit, Lisbon short term rental market grew from 2,183 in 2015 to 3,705 in 2017. The market grew at a CAGR of 30.28% during this period. The market experienced a 30% growth from 2016 to 2017.

    GROWTH BREAKDOWN

    REVENUE AND PROFITABILITY PER UNIT

    • According to Nomura Capital, short term rental market gross profitability ranges from 16.0% for a low-quality unit to 10.9% for a high-quality unit. This averages to 10.7% for a medium quality unit.
    • Revenue per available room (RevPAR) in Lisbon grew from 39.3% in 2009 to 59.2% in 2016.

    NUMBER OF GUESTS

    AVERAGE RENT

    • The average price of short term rental (medium quality) for a two night in Lisbon is $108.96 (€96.5), which is $54.48 (€48.25) per night.

    AVERAGE RENT BREAKDOWN BY SHORT RENTAL UNIT QUALITY

    SHORT TERM RENTAL MARKET AVERAGE BED AND ROOM OCCUPANCY TAX

    • According to Nomera Capital, the short term rental market average bed and room occupancy tax is closely similar to the general lodging market average bed and room occupancy tax of 57.8% and 78% respectively.

    FACTS ABOUT LISBON

    METHODOLOGY

    To provide the requested information regarding Lisbon's short term rental market, your research team leveraged publicly available information in market reports by reputable market firm like Nomera Capital. While these sources provided most of requested information on Lisbon's short term rental market, information regarding Lisbon's short term rental unit type breakdown was not publicly available.

    We also reviewed Lisbon rental market reports in search of information on the short term rental units type breakdown or data points that we might have used to triangulate a proxy. While information on the general Lisbon rental market analysis, in terms of rental units type [entire home — 80%, single room — 18%, and shared room — 2%] was publicly available, information specific to the short term rental market was locked behind a paywall. We could not also find data points to estimate a proxy for the short term rental market.

    We also consulted reputable media like Jornal de Noticias, Publico, Libertagia News, PR Newswire, Business Insider, and Observador in search of information regarding Lisbon short term rental unit type breakdown. A thorough search through these sources provided no helpful information regarding the short term rental unit type breakdown.

    Using a CAGR calculator we estimated the market growth rate from 2015 to 2017 to be 30.28% using 2,183 (2015) as the initial value, 3,705 (2017) as the final value, and two years (2015 to 2017) as number of periods. All figures (revenue) reported in Euro were converted to USD using Google currency converter at a conversion rate of USD 1 to 1.13 Euro.
    Part
    05
    of six
    Part
    05

    Rental Market Top Players - London

    The top three long-term rental providers in London are Mitula, Nestoria, and Trovit; whereas, the top three short-term rental providers in London are Airbnb, HomeAway, and OneFineStay.


    TOP SHORT TERM RENTAL PROVIDERS IN LONDON

    1. Airbnb

    • Website: www.airbnb.co.uk
    • Why they are one of the top players: Airbnb has the highest number of short-term rental units with nearly 74,153 properties in London.

    2. HomeAway

    • Website: www.homeaway.co.uk
    • Why they are one of the top players: HomeAway has the second highest number of short term rental unit with over 11,911 properties in London.

    3. OneFineStay

    • Website: www.onefinestay.com
    • Why they are one of the top players: OneFineStay has the third highest number of short term rental units with about 369 properties in London.

    TOP SHORT TERM RENTAL PROVIDERS IN LONDON

    1. Mitula

    • Website: property.mitula.co.uk
    • Why they are one of the top players: Mitula has the highest number of long-term rental units with over 335,503 properties in London.

    2. Nestoria

    • Website: www.nestoria.co.uk
    • Why they are one of the top players: Nestoria has the second highest number of long-term rental units with more than 73,375 properties in London.

    3. Trovit

    • Website: homes.trovit.co.uk
    • Why they are one of the top players: Trovit has the third highest number of long-term rental units with over 55,938 properties in London.

    RESEARCH STRATEGY:

    Top three short-term rental providers in London

    We used the comprehensive members' list of 'Short Term Accommodation Association' of the United Kingdom to determine the top short-term rental providers in London. The Short Term Accommodation Association (STAA) is a UK trade body representing the entire short-term rental sector, from large platforms to hosts. The members included Airbnb, HomeAway, HostMaker, UnderTheDoorMat, Pikl, OneFineStay, and others. Further, we compared the number of short-term rental listings for London for all the found rental providers independently. The short-term rental providers with the highest number of listings have been included in the list of top three short-term rental providers in London.

    Top three long-term rental providers in London

    In order to identify the top long-term rental providers in London, we used the list of top property providers in the UK. The list highlighted the property providers (both rent and sale) with the maximum number of listings in the United Kingdom. In order to narrow down and corroborate with the research criteria, i.e., long-term rental providers in London, we studied and compared the number of long-term rental listings for London for all the found rental providers and included the ones with maximum rental inventory in London in the key findings.
    Part
    06
    of six
    Part
    06

    Rental Market Top Players - Lisbon

    In terms of the number of properties listed, the top three long-term rental providers in Lisbon, Portugal are Uniplaces, Erasmus, and Spotahome; while the top three short-term players are Airbnb, Salovani-traveling to Lisbon, and Lisbon Apartments. Below are our deep findings and detailed methodology.

    Findings:

    Top three long-term rental providers

    1. UNIPLACES

    • Why it has been selected as one of the top players:
    • It provides rentals for students and digital nomads visiting Lisbon for a few months.
    • It is also is considered to be a long-term provider as it provides its rent for all its listings on a monthly basis
    • It is considered to be a top provider as it has the maximum number of listings, 6,092 in total.

    2. ERASMUS

    • Why it has been selected as one of the top players:
    • It is a long term provider as it provides accommodation for students and professionals who are the primary customers of long-term rentals.
    • Erasmus also shows the rents of its properties on a 'per month basis'.
    • It is considered as top provider as it has the second highest number of properties listed, 3,140 in total.

    3. SPOTAHOME

    • Why it has been selected as one of the top players:
    • Spotahome is recognized as a long term provider as its an alternative to Airbnb. It focuses on people that want to rent on a mid to long-term basis.
    • It also shows the rent of its properties on a per month basis.
    • It is considered as one of the top providers as it has the third highest numbers of properties listed, 1,993 in total.

    Top three short-term rental providers

    1. AIRBNB

    • Why it has been selected as one of the top players:
    • Airbnb is a short-term provider as its customers rent a castle for a night, a sailboat for a week, or an apartment for a month.
    • It has been considered a top provider as it has 300+ places to stay in Lisbon with rent given on a per night basis.

    2. SALOVANI-TRAVELING TO LISBON

    • Why it has been selected as one of the top players:
    • It is considered within the top 3 list as it offers around 150 apartments for the short-term rentals (2, 3 days or more).
    • It is also considered to be the market leader in short-term apartment rentals in Lisbon.

    3. LISBON APARTMENTS

    • Why it has been selected as one of the top players:
    • It is considered within the top 3 list as it provides 108 apartments for vacation homes which are considered to be short term rentals.


    RESEARCH STRATEGY

    To find information pertaining to the research criteria, we began our search by going through the research documents published by globally reputed property dealers such as Newmark Knight Frank, Colliers International, Cushman & Wakefield and Kidder Mathews, among others. Our aim was to look into details relating to the rental market of Portugal and then focus upon the providers working in Lisbon and their market positions. Although there were details on the Portugal market in terms of value and overall size of the market, growth, and new trends, we could not find granular information in terms of rental providers in the city of Lisbon.

    Next, we looked into websites which included similar information such as Homes and Property, Portugalist, Europages, among others. Here, our aim was to look into articles or summary reports published on these sites and find a comprehensive account of all the players listed in the market. Although the information we found was limited, we could find an article on Portugalist website providing the names of all the major players in the market. Therefore, on each company provided on the list, we checked its website to find the needed information. The website provides a list of 11 companies. To find more companies other than those covered on this list, we looked further into sources which have reviews from people visiting Lisbon on sources such as Trip Advisor, Facebook groups dedicated to apartments and rooms for rent in Lisbon such as Casas e Apartamentos para arrendar em Lisboa, Arrenda Lisboa Low Cost Apartamentos, Lisboa Quartos e Apartamentos, among others. These sources provided a reference to a couple of more providers. These rental market providers have been added to the list as shown on the Living Lisbon and Short Stay Flat websites.

    Finally, we searched for research reports on the rental market published by McKinsey, BCG, PWC Deloitte, among others, and sources that provided market insights on European countries and cities such as Euromonitor, Nielsen, among others. However, these sources did not provide any specific list of players pertaining to Lisbon and rather provided insights on the entire market. We also looked for quantitative information on sites such as Statista and other business sources such as Forbes for the total number of providers. However, there was no such information available on these sources.

    NOTE: From the above strategies, we could find 13 rental providers in Lisbon. So to select the three long-term and short-term providers, we used the evaluation below.
    • AirBnB: Why it was included has been explained in details in the findings section. It is the top short-term provider in terms of properties listed.
    • Spotahome: Why it was included has been explained in details in the findings section. It is the third top long-term provider in terms of properties listed.
    • Nestpick: It was not considered due to its aggregated listings from the other sites.
    • Long Term Lettings: This was considered as a long-term provider with rental properties listed on monthly rent basis. This was not included in the final list as it only had 29 properties listed.
    • Sublet: This was considered for both short-term and long-term as it has both type of listings as mentioned on its website. However, it could not make into any of the top lists because it has 73 rental properties listed.
    • Expat: This could not also make into any of the top-lists as it has only 21 properties listed.
    • Red Apple Apartments: This could also not feature into any of the top-lists as it has only 12 properties listed.
    • Lisbon Apartments: It was considered as one of the top short-term rental providers. Why it was considered has been explained in the findings.
    • Sabbatical Homes: This one also did not feature into any of the top lists as it has only 22 providers.
    • Erasmus Lisbon: Why it was included has been explained in details in the findings section. It is the second top long-term provider in terms of properties listed.
    • Uniplace Lisbon: Why it was included has been explained in details in the findings section. It is the top long-term provider in terms of properties listed.
    • Salovani-Traveling to Lisbon: Why it was included has been explained in details in the findings section. It is the second short-term provider in terms of properties listed.
    • Short Stay Flat: It was not included as a short-term provider as it has 60 apartments.
    After evaluating each in the way above, this is, in terms of the number of properties listed, we could find the top three long-term rental providers and the top three short-term rental providers in Lisbon, Portugal.
    Sources
    Sources

    From Part 04
    Quotes
    • "We’ve just released the Short Term Rental Market report covering Lisbon and Porto. In the end of October 2017 there were 10 215 and 4 679 registered short term rental properties in Lisbon and Porto, respectively. Since 2016, the number of units grew 30% per year in Lisbon and 97% in Porto."
    Quotes
    • "The historical centre of Lisbon are responsible for aproximately 75% of the offer of Short Term Rental units in Lisbon, namely the parishes of Santa Maria Maior (home of Alfama), Misericórdia (Chiado, Bairro Alto), São Vicente (Sé) and Santo António (Av. Liberdade)."
    From Part 06
    Quotes
    • "Salovani-travelingtolisbon is a family business founded by Alexandra Pauthier based in Lisbon that offers around 150 apartments for short term rentals (2, 3 days or more). It is the market leader in short-term apartment rentals in Lisbon."
    Quotes
    • "ShortStayFlat is a company with more than 60 apartments for short term rental, located in the most emblematic and central districts of the city of Lisbon. Suitable for the different preferences of location and accommodation of our guests, and with excellent value for money. We also have apartments located in Estoril and Paço de Arcos, for those who prefer to be near the sea."
    Quotes
    • "Whether the available space is a castle for a night, a sailboat for a week, or an apartment for a month, Airbnb is the easiest way for people to showcase these distinctive spaces to an audience of millions."
    Quotes
    • "SEARCH every type of rental: Short Term and Long Term, Furnished and Unfurnished, Private Rentals and Rooms for Rent. With an updated database of rentals worldwide, you will find a rental that is perfect for you."