Property Investment Strategy: A Quick Guide to Serviced Accommodation
Serviced accommodation is one of the fastest-growing sectors in the property rental market. It provides tangible benefits to both landlords and guests with high-liquidity and high tenant turnover.
This type of investment falls between a traditional holiday-let and a hotel, making it increasingly popular among tourists, business travellers, and tenants looking for longer stays.
What is Serviced Accommodation?
Serviced accommodation is a furnished property that provides amenities, housekeeping, and other services for guests within the cost of the rental.
It should be a step up from a hotel room, providing a homely experience with everything apart from food included in the rental price.
What are the benefits of Serviced Accommodation for Landlords?
Serviced accommodation provides the flexibility of being able to offer the property for short periods as well as longer lets. The rental income from serviced accommodation is also higher than a standard buy-to-let – providing the occupancy levels are high.
What type of mortgage do I need for Serviced Accommodation?
A standard buy-to-let mortgage is not suitable for this type of investment and you will need a commercial mortgage to fund serviced accommodation.
Serviced Accommodation Top Tip
Like with any rental property, location is key to both maximising income and maintaining, or growing, the value of your investment.
If you choose a desirable area and market your property at a fair price, you should be able to find guests. If you invest in a less popular location or at the wrong price, you could have significant void periods.