If there’s one thing every business would like to see, it’s more profit. After all, there’s no such thing as having too much capital, is there? And of course, there are so many different ways companies can expand to open up new revenue streams.
Hotels renting out rooms as private offices during the Coronavirus pandemic is a prime example of how a business can make the most out of its space. Anyone who was sick of WFH could book a room from 9 til 5, and then simply head home at the end of the day.
BTR has the same capability to make additional profits. If there’s a good deal of space available, it will always have use and appeal to someone. To help you get the most out of your BTR scheme, we’ve put together this guide that will introduce you to new ways of using residential amenity space to boost profits.
Provide Relief From WHF
Let’s be honest, work from home has lost a lot of its appeal. Sure, cutting out the commute has given us a few more precious minutes in bed each morning, and desperately trying to get home in time to watch Richard Osman’s House of Games is a thing of the past, but has it really been a decent pay-off?
A lot of us are working in our bedrooms, kitchens and even the living room these days, and it has taken its toll on us. As the hotel sector’s success has proven people want to escape their house to restore that crucial work/life balance.
Co-working spaces have been growing in popularity for years, especially among solo entrepreneurs and freelancers. If you have residential amenity space available, it’s worth considering whether a hot desking service for non-residents would be beneficial, as it has the potential to remain a success even post-COVID.
You may need to increase COVID security measures for the time being, but hotels in Manchester made between £20 and £40 per room rented for a 9 til 5 use. If you have the space, your solution to WHF fatigue could bring in a very healthy profit.
Host Functions & Events
Rooms with a great deal of floor space are perfect for holding functions and events. Admittedly, the chances of someone holding a wedding reception or a Bar Mitzvah in a BTR function room are very slim, but your space could be perfect for conferences and networking events.
Event holders are always looking for the ideal space. They need to host their events in a location that is:
Easily accessible via car, public transport and within walking distance from hotels and train stations
Has plenty of parking
Suitable for presentations (ie. projectors, screens and speakers can easily be set up)
Can be cordoned off for privacy
Has staff on-hand who can help
Can comfortably accommodate enough guests
Located close to shops, cafes, restaurants and bars (having these amenities on-site could also work in your favour)
More importantly, event organisers always take costs under consideration. As hosting functions isn’t your main source of revenue, you may be able to lower your price to be more competitive against hotels and other space providers.
As long as you remain in profit from the event, you’re bringing in additional income from your residential amenity space that otherwise you might not have seen.
Teach People a Lesson
Plenty of BTR properties come with fully-equipped gyms and workout spaces, which can provide you more ways to bring in extra profit. So many of your residents would probably love to get in better shape, but if they don’t know where to begin, going to the gym would feel a bit pointless to them.
However, you could negotiate with yoga teachers and fitness instructors to come down to your property and hold regular classes. While the instructors provide your residents with a first-class service, your building would take a percentage of the class fees, meaning everyone benefits from the sessions.
Of course, you don’t have to hold fitness classes indoors. Outside residential amenity space in particular is great for yoga, as it allows the students to relax more and connect with nature. If you have roof space, why not suggest a class on the terrace where everyone can enjoy a bright, sunny day?
If you have a restaurant on-site, you could also hold cooking lessons. And cocktail-making classes are becoming extremely popular if you have a bar as well. There are lots of different options, so make sure to consider what each of your amenity spaces could be used for.
Other Ways to Boost Profits From Residential Amenity Space
There’s a lot of wasted space in BTR that can always be put to better use without affecting the day-to-day lives of your residents. Some other uses we’ve come across for residential amenity space include:
Housing mobile phone masts on the roof
Renting out parking spaces
Installing vending machines which providers pay rent on
Take some time to consider the different ways you could include additional revenue streams, and you may surprise yourself with what you can come up with.
Using Your Residential Amenity Space to its Full Advantage
There are endless ways to increase BTR profits by putting your residential amenity space to better use. However, the key to increasing revenue streams successfully is by making sure these methods have a positive impact — or at the very least, a neutral impact — on your tenants.
Above everything else, your main source of income comes through renting apartments, so residents need to be at the forefront of every decision you make.
Focus on ways you can create a better, more uplifting environment for them, and you may find renewing tenant agreements to be much simpler as well. Services such as personal training, cooking classes and having a breakfast bar that doesn’t double up as a work desk are just some of the little things that make life that little bit better.
Creating these spaces to be warm and welcoming may be a challenge, so get in contact with our team if you need professional advice on interior design and furnishings.