What occupancy rates can you expect from professional, student, family and luxury lets in Cardiff?
Cardiff has gained a reputation as a top location for buy-to-let investments, with a thriving rental market attracting a steady stream of property investors. Whether you're interested in professional lets, student accommodation, family rentals or luxury properties, understanding the varying occupancy rates within each category is crucial for making informed investment decisions. In this blog, we’ll explore the occupancy dynamics in Cardiff's rental market for each type of let.
Occupancy rates for professional lets in Cardiff
With the demand as it is, homes suitable for professionals should comfortably maintain occupancy for 11.5 to 11.75 months of the year. This is assuming tenancy start and end dates are managed effectively, of course. One of the biggest reasons that the void periods for the properties we manage are so low (an average of just 3 days per year for each tenancy, whereas the national average is 22 days!) is that we're very on the ball when it comes to both communicating with our contract-holders and producing prompt, effective marketing.
Two months before each tenancy is due to end, we approach our contract-holders in order to establish their future plans. We allow them a two-week period in which to sign an extension to their tenancy and if they haven’t done so in that time, we'll start advertising on all property portals or reaching out to our database to get new occupants lined up ASAP. This affords us a comfortable six-week period to source replacement contract-holders, ensuring any empty/void period is kept to a minimum, if there is one at all.
Read: How much demand is there for professional, student, family and luxury lets in Cardiff?
Occupancy rates for student lets in Cardiff
Student properties in Cardiff are in high demand, so there is a very high chance that your property will be occupied all-year-round. Most student tenancies run from July to June, but students typically return home during July and August. During this time, landlords typically receive half rent for one or both months (this is typically the full amount for one-and-two-bedroom properties, regardless of whether they are occupying or not).
Tip: Our experienced team will regularly advise landlords of student rentals on how best to ensure their property appeals to the mass-market. During the summer month(s) when the property is vacant, it’s an excellent time to fix any problems, replace carpets and update the décor. Such improvements not only enhance contract-holder satisfaction, but may also allow you to raise the rent, maximising your returns.
Read: How to minimise void periods and maximise profits
Occupancy rates for family lets in Cardiff
Occupancy rates for family lets in Cardiff tend to be relatively stable. Families typically seek long-term rental arrangements, providing a consistent demand for suitable properties. It can vary a lot depending on the area you invest in, with parts of Cardiff such as Roath and Heath attracting families due to their proximity to excellent schools, green spaces and a sense of community.
Occupancy rates can indeed be very strong – some landlords we work with have the same contract-holders for 10+ years – but on the other side of the coin, if you let to a family that’s due to grow in the near future, you may well find that they’re soon on the lookout for a bigger home to accommodate their extra number(s). We advise speaking to our team of experts for a more in-depth look at the market for family lets in different parts of the city.
Always bear in mind that there is a limit to how much families are able to pay, so if you’re looking to let to a family rather than a group of sharers, your expectation for rental income will need to be realistic. Sharers will have the income of 2+ people to spend, whereas a family of two parents and two children will have the income of two people at most, possibly one. Not only that, but a family’s outgoings are going to be considerably higher than that of a group of sharers. All in all, sharers can usually afford to pay more rent than a family, but there are HMO regulations to consider when renting to a group, which don’t come into play when renting to a family.
Occupancy rates for luxury lets in Cardiff
Luxury lets in Cardiff experience high demand for events that attract a large number of visitors to the city, such as sporting events or concerts. Rather than leave immediately after the event, many will arrive days earlier and/or return home days later. While luxury lets in Cardiff are not solely dependent on sports events, they significantly contribute to the market's success. The nature of the varied demand means that a luxury let is highly unlikely to be occupied all-year-round, so void periods should be expected, as should a higher turnover of contract-holders compared to other types of lets.
To maximise occupancy rates for luxury lets, it is crucial to offer exceptional amenities, impeccable service and maintain a strong, proactive online presence through effective marketing. Exploring niche markets like corporate rentals or catering for actors and crew members involved in TV projects being filmed in the city can help maintain a consistent stream of high-paying contract-holders. Staying updated on special events throughout the year is crucial. Engaging with local property experts is highly recommended, as flexibility with terms, such as offering short-term lets or allowing early contract terminations may be necessary to accommodate the needs of these contract-holders.
Whilst this guide gives you a general overview of rental occupancy in Cardiff, it is important to note that the market is constantly fluctuating. If you are contemplating investing in Cardiff and seeking expert guidance, we highly recommend reaching out to our Senior Market and Investment Specialist, Rhys Owen who will be able to share his extensive knowledge and insights into local market trends. Get in touch via rhys.owen@cpshomes.co.uk or call 02920 668585.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
