What do renters want?

Our findings suggest that owners, who have a longer term stake in the local area, place greater importance on locational factors such as proximity to historic attractions or local medical facilities. Renters, using the property for only a short time, are more interested in the property features on offer. For example, private swimming pools, hot tubs and gardens are ‘under provided’ for renters (see chart below).

There is evidence in this chart that renters may not want a fundamentally different experience to owners but do put added emphasis on peace and nature (sea views, rivers and lakes) as well as privacy (own swimming pool/hot tub, private garden).

Seasonality

Overseas travel has become less seasonal than it was. Spring travel, in particular, has emerged as a more important travel period (for the British in particular). But the summer months remain by far the most popular time for short-let accommodation. This varies slightly between nationalities, and is dictated in part by school holidays in the home country. Major travel times for Americans coincide with spring break and the June/July school holidays. The French are overwhelmingly likely to rent in August. They take 28% of all their trips in this month.

The British are the least seasonal among the major national groups, and more likely to travel during the ‘shoulder seasons’ than others. This is a marked change since 2011, when the British made over half their trips during the summer months.

Occupancy

The average annual occupancy of a second home (across all countries) stands at 29 weeks out of 52, This includes time spent in the property by the owners. UK-located properties are the most fully occupied, averaging 40 weeks a year. Properties in the US also average a high rate of occupancy, at 34 weeks annually, helped by long seasons in locations such as Florida and California.

We expect void periods to further fall in future as digital tools enable owners to maximise the take-up of their residences.

Rental demand is increasing

Some 37% of owners surveyed stated their number of bookings had increased over the last 12 months compared to the previous 12 (43% stated they had remained at similar levels to the previous year).

The rise may be attributed to demand for ‘safe’ summer sun destinations. While uncertainty and concerns over safety in markets such as Turkey has affected demand (57% of owners reported a decrease in bookings there).

Cyprus, Greece and Portugal seem to be rising in popularity, with half of owners citing an increase in bookings over the prior year. Although the letting season in these markets is relatively short, rising popularity should mean that owners can charge higher peak season rents.