The Benefits of Serviced Accommodation

What is Serviced Accommodation?

Investors can maximize their returns on their property by investing in serviced accommodation.

In this case, you are investing in a property that is regularly serviced, providing an experience similar to that of a hotel. Typically, serviced accommodation properties are furnished to give their guests a sense of home away from home.

The need for serviced accommodation properties is widespread – from holiday makers to business travellers to construction workers. Because of the needs and desires of lodgers, the target market for serviced accommodation greatly depends on its location.

The majority of holidaymakers will look for a serviced accommodation stay that is close to shopping and leisure facilities, as well as a strong transportation network. In the meantime, they may want an apartment with scenic views and easy access to nature.

When travelling for business or construction work, travellers will likely need accommodation near their workplace, an apartment which will make their commute easier.

A person’s reason for returning home for a short period of time will greatly impact whether they choose to live close to home. A family event, caring for a sick relative, or another commitment may fall under this category

Although location is a major factor influencing lodgers’ decisions, investors and those who manage these properties for them will emphasize the remaining unique selling points (USPs) of their properties.

Location is a big factor regarding lodgers’ decisions, but investors and those who manage these properties will promote the remaining unique selling points (USPs) of the property in order to attract their customers.

Occupants

Investing in serviced accommodation is more convenient when an outside company handles the rentals, allowing the investor to be hands-off. Investing in a buy-to-let property can be intimidating for some investors as building relationships with tenants is not possible as it is with buy-to-let properties.

Serviced accommodation investors with little experience may have difficulty trusting their lodgers due to this lack of relationship, but lodgers tend to be incredibly respectful and take good care of their accommodations.

Revenue

Serviced accommodation properties can bring investors great returns because they allow them to maximize their profits. It’s important for serviced accommodation properties to highlight their unique selling points, allowing them to provide the most attractive services.

Short or long-term stays are available to lodgers of serviced accommodation, but the most common stay is short-term.

Investors who rent their properties to multiple occupants throughout the month can earn a higher income than they would by renting them out as buy-to-lets. There are three factors that determine the price of serviced accommodation: the property’s offerings, its location, and its market. Every time the property is rented, this established rental price is paid.

Flexibility

Hiring a rental management company gives investors greater flexibility in managing their serviced accommodations. A hands-off approach allows investors to manage their investment property as they desire.

When renting a short-term property, investors have the freedom to perform maintenance at convenient times instead of disrupting tenants (unless there is an urgent issue). As a result, investors are less likely to experience stress when unexpected circumstances arise.

Conclusion

Property portfolios can be enriched by investing in serviced accommodation properties. Investing in rental properties has a number of advantages.

A buy-to-let property offers tenants a comfortable, spacious home in a convenient location that meets their needs and desires – serviced accommodations offer the same, but bring investors a higher income.

By earning a rental income per stay rather than monthly, investors earn a higher revenue – often seeing a return on investment sooner. Compared to buy-to-let rentals, income may vary month-to-month, but profits are likely to be higher.

Investors can be flexible when investing in serviced accommodation. Delegating management responsibilities to another company allows investors to be as involved as they like. This often allows them to concentrate on other investments in the meantime.

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