Why Invest In Serviced Accommodation?

May 5, 2022

There's a myriad of investment opportunities in property and Serviced Accommodation can be one of the most lucrative. Read why it can work for you.

Investing in property has been a popular investment route for many budding investors. There are now more property investment opportunities than ever before. As with all investments, it is worth talking about the pros and cons of the investment and what will work best for you. There is no guarantee with any investment that you will make more than you invest. However, when you invest in property, you will at least still have that, regardless of the return on your investment.

In this blog post we look at serviced accommodation as an investment opportunity. Below we have included lots of things that you need to know so you can make an informed decision about investing in serviced accommodation and why an investment in serviced accommodation could be the right investment for you.

What Is Serviced Accommodation?

Serviced accommodation is an umbrella term. It covers a number of properties that offer short-term and long-term accommodation solutions to travellers or renters. A serviced accommodation is known as a home from home. As opposed to being cramped into a single hotel room. Guests at a serviced accommodation property have a whole home and all its space to enjoy. Serviced accommodation is ideal for family holidays, contractors, NHS workers and more.

If you are staying anywhere for more than a few nights, you will find that serviced accommodation is far more suitable than a hotel. You have more space and it’s more affordable too.

Why Invest In Serviced Accommodation?

One of the biggest worries for any landlord are void periods where the property is empty. This can be any length of time where there is no tenant lined up waiting to move into the property. During this time, the landlord is covering the payments and the property is not producing any kind of income.

Meanwhile, serviced accommodation appeals to both long-term and short-term renters. This means that it will be a lot easier to find guests to stay at your property. This is especially the case when compared to finding tenants for other types of property investment. You will also be able to charge more than you would to a traditional renter. This means the extra costs will cover you if your property is empty.

The key to keeping your serviced accommodation booked is making sure it is well-placed. You need to have your serviced accommodation in a location where people want to stay. It needs to be easily accessible, as well as close to main roads and public transports too.

Serviced accommodation is reported to yield higher rates. For example, in most types of property, a long-residential tenancy can be expected to produce a yield of 2-4% on investment. When you look at serviced accommodation it is likely to yield a much more impressive 6.5 – 9%!

As professional and experienced serviced accommodation professionals we can help you find the right property for your serviced accommodation investment. Want to know more? Call our team.

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