Serviced accommodation refers to fully furnished properties that are available for both long and short term let. This type of ‘home from home’ accommodation offers the same kind of facilities as a hotel and they have risen in popularity over the past couple of years thanks to sites like Airbnb and booking.com.
They’re typically high quality, individual units with 1, 2 or 3 bedrooms and usually include benefits such as maid service, 24-hour reception and on-site amenities like pools, gyms, restaurant and bars. Hotels are no longer the automatic choice for many people, with technology changing the face of travel, opening up a range of accommodation options to suit all budgets, lifestyles and tastes.
Investing in serviced accommodation can result in some seriously amazing returns and the demand for serviced accommodation is rapidly growing - the UK sector has doubled in size this year alone and most importantly, this growth comes from every part of the UK, not just the obvious commercial city centres like London and Manchester.
There are a huge number of benefits to considering this type of investment:
> It's cost effective. The property will be maintained on a weekly basis that allows you to deal with little issues before they become big ones.
> Ready to sell. When you decide it’s time to sell, it will be quick and easy to do because it’s in such a great, well-maintained condition
> Properties are well looked after. Although the properties are not being lived in as ‘homes’ they tend to attract a high-end tenant, who even if they’re staying there long-term, will be aware the people going into the property on a regular basis and therefore tend to leave it very clean and tidy.
In fact, serviced accommodation is almost a no-brainer for any serious property investor, but there are a couple of drawbacks that mean it’s not the right solution for everyone. The biggest of these reasons is the amount of time required looking after and maintaining the property. Tenants expect a certain amount of attention and effort; such as someone to meet and greet them, to accommodate weekend changeovers and a for a cleaner to regularly attend. For the ‘hands-off’ investor this level of effort is a step too far, and trying to manage this type of let along with a full-time job can be extremely challenging.
Choosing the right location is also vitally important, and whilst it’s true that a serviced property could potentially work well in any town or city in the UK, knowledge of the specific locations that will be most popular and being able to bag a property there is generally not easy.
But there is a solution...
Here at Progressive Lets we have a dedicated team available to take the pressure of maintaining a serviced accommodation portfolio away from you. For full details about the full range of Serviced Accommodation services we offer, please email our team or call our Operations Manager, Steph Forrester on 01733 293900.