What is the Blended Rental Model, and Why is it a Good Option forHomeowners and Property Investors?

The property market is continually evolving, and with it, new rental strategies are emerging that offer flexibility and potential for greater returns. One such strategy is the blended rental model, which combines short-term, medium-term, and long-term lettings to maximise income and minimise void periods for property owners. This model provides a dynamic way for homeowners and property investors to manage their properties, ensuring both steady cash flow and the opportunity for higher returns.

What is the Blended Rental Model?

The blended rental model allows you to rent your property through a mixture of short-term, medium-term, and long-term lets. Rather than relying solely on one type of rental, this model offers flexibility in how the property is utilised across different timeframes. For example, a property might be listed on a holiday letting platform during peak tourist seasons and switch to a long-term tenant during quieter months.

The key advantage is that property owners can adapt their rental strategy to market demand, leading to potentially higher returns and greater overall efficiency.

Why is it a Good Option for Homeowners and Property Investors?

1. Maximises Income Potential

The main benefit of the blended rental model is its ability to increase income. Properties can be let for higher rates during short-term holiday periods while securing medium or long-term tenants during off-peak times. Properties listed full-time under this model can earn between 50% and 100% more than if they were solely rented on a long-term basis.

2. Minimises Void Periods

By utilising different rental strategies, you can avoid the dreaded void periods (times when the property sits vacant). For instance, if a long-term tenant moves out unexpectedly, the property can quickly be listed for short-term stays to fill the gap.

3. Flexibility for Owners

Homeowners who occasionally use their property themselves (e.g., for holiday homes) can still earn income from the property when they aren’t using it. The blended model allows them to rent the property short-term when it's available for a few months or to medium-term tenants if it’s vacant for a longer period.

4. Guaranteed Rent Options

For property investors who prefer security, Fairway Hosting offers guaranteed rent for up to five years. This option provides a fixed market rent with zero property management fees, including property management services and damage protection insurance. This is particularly attractive if you want a hassle-free, stable income while still allowing the flexibility of a blended rental approach.

5. Property Management 

Managing different types of tenants across varying time frames can be time-consuming, but a managed blended rental service takes care of all aspects, from marketing and guest vetting to cleaning and maintenance. For instance, Fairway Hosting offers a fully managed service that ensures high standards of property upkeep and guest experience across all types of rentals.

Examples of When the Blended Rental Model is an Attractive Option:

1. Holiday Homes in Tourist Areas

A homeowner with a property in a popular vacation destination can list their property for short-term lets during peak holiday seasons. During the off-season, they might switch to medium-term rentals, attracting digital nomads or remote workers looking for a temporary base.

2. Property in a Business Hub

In cities like London, short-term lets to business travellers and professionals attending conferences can be lucrative. When demand for these types of stays decreases, the property can be rented out for several months at a time to professionals on temporary work assignments.

3. Homeowners Looking for Additional Income

For homeowners who only live in their property part of the year, the blended rental model offers a way to monetise their home during periods when it’s not in use. They can rent it short-term to tourists or medium-term to professionals, ensuring their property is generating income even when they are not there.

Conclusion

The blended rental model gives homeowners and property investors a flexible, smart way to make the most of their properties. By mixing short, medium, and long-term rentals, it helps you keep a steady stream of income, reduces those dreaded empty periods, and boosts your overall returns. Whether you're aiming for higher income, the peace of mind that comes with guaranteed rent, or just the freedom to manage your property in a way that suits you best, the blended rental model could be the perfect solution.

Ready to explore the potential of Blended Rental Options? Contact us today to learn more about our services and how we can help you maximise your residential investments.