Advice For Investors With Properties Near Major Events

Cofounder at UpperKey. Passionate about property management, real estate investments, proptech and driving international business growth.

When investors are looking into real estate opportunities, location is typically the number one consideration. However, what makes a great location doesn’t fit neatly into one box. Location means different things to different people, and prime location will vary for families, couples, young singles, business travelers, tourists and sports and leisure enthusiasts.

I want to share some advice for property investors and owners when it comes to hosting guests in the ideal locations for major events.

What are the important factors for properties located near major events?

The factors that are important for any property tend to impact event accommodation in almost the same ways. Let’s take a look.

1. Access/centrality: Being central to amenities makes a property highly desirable. Whether that’s access to tourist attractions, business centers, schools or, in this case, event venues, having easy access to what visitors want and need makes life easier and properties more attractive.

2. The neighborhood: A neighborhood might be closest to the event, but if it isn’t attractive or particularly safe, it’ll raise red flags with visitors and affect desirability. If it has good amenities, restaurants, shops and stores, and is attractive and safe, it will tick everyone’s checklist and achieve more favorable rents for investors.

3. The lot location: Even in an attractive neighborhood, there’s such a thing as a bad lot. Is your potential property just a little too close to congested roads or highways, busy car parks or ugly commercial buildings? Are there noise and foot traffic issues that could be off-putting for guests? This could be as simple as being too enclosed with poor views, but if there are any downsides to your lot location, you could accumulate poor reviews that affect future bookings.

4. Development: If you’re considering a short-term investment for a specific event, how will things look once the action’s over? Most Olympic locations are set in already attractive capital cities, but the investment into public transport, local infrastructure and amenities in poorer performing areas and locations regularly provides a knock-on positive effect on property values.

5. The property itself: A modern, well-developed property can blindside many homebuyers, but it’s an investor’s job to see through the glitter. Yes, appearance is crucial, but you can renovate a property to make it fit for purpose; what you can’t do is move it to another district or location. You could even stand to get a better deal on a property that needs a little work, making a better opportunity than some of its better-presented alternatives.

Research the major events schedules of potential investment locations.

If you’re hoping to squeeze extra income from your investment, you must do your homework. Find out which major events are coming up in your preferred locations and how often they happen. Consider events like:

• Concerts.

• Festivals.

• Gigs.

• Theater, comedy and drama festivals and Fringe festivals (for example, Edinburgh).

• Sporting events, like the World Cup, Olympics, Grand Slams, golf tours, etc.

• World championship events.

• Arenas and exhibition centers.

A location that operates an annual event will deliver yearly bonuses, but if it’s a one-off event, you’ll have to consider what you want to do with the property afterward.

Explore the demand, pricing strategies and going rates for current and previous events.

Airbnb data from 2019 revealed that 44% of their global hosts provided accommodation for guests traveling for sporting events, which bumped up to 54% in the U.K. and 55% in the U.S. (Disclosure: My company provides management services for hosts on Airbnb.)

You can often expect demand to increase well in advance of the event, and the rates fly up accordingly. But I’ve found you can also expect an influx of new host listings around six months before.

Airbnb’s data also uncovered over 100% growth in listings before the 2018 Olympics and over 200% for the 2014 and 2018 World Cups and the 2017 Super Bowl. Their estimated guest attendance for the 2014 and 2018 World Cups stands at 391,000 (with estimated host earnings over $79 million); for the 2012–2018 Olympics, they estimate 112,000 visitors (with estimated host earnings over $37 million); and for the 2015–2019 Super Bowls, 49,000 guests (with estimated host earnings over $27 million).

Short-term stays are big business for sporting events and a worthy opportunity for investors.

Allow shorter stays and reduce your minimum stay length.

To maximize income during longer competitions and events, I recommend you break your stays down to shorter lengths. Many fans and visitors travel for a specific game or match or have a particular window for their stay. Filling the gaps could mean offering single-night stays to ensure your property is booked for the entire event.

Provide online and physical resources related to the event.

Include links to the events and specific information about your property and its location, as well as hard copies at the property. The easier you make it for your guests to navigate their stay, the more attractive you are as a prospect—including transport and dining recommendations based on your expert local knowledge.

Creating a guidebook or providing a folder full of brochures, leaflets, vouchers and discounts for everything visitors are likely to engage with during their stay will help with reviews for future bookings.

Update your cancellation policy.

Finally, to protect those high-value bookings during the boosted-rate period, double-check that your cancellation policy covers precisely what you need. The last thing you need is an empty property failing to pay its way during a high-rate period.

Investing in the ideal real estate around major event venues can be a lucrative exercise when done well. Once again, it shows just how critical location is—albeit in a different situation—for the sharp and shrewd investor.

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