Are you looking to get into property investment and can’t decide between serviced accommodation and buy to let? In which case, this is a must-read blog post for you. We compare various differences to help you see which property investment could work better for you; serviced accommodation or buy to let.

·        Length Of Stay

With serviced accommodation a guest’s stay could be as short as just a few nights. However, in some cases it could be many months or even a year. This is commonly the case when you have contractors stay. They will be working on a site locally and need accommodation until the project is complete.

That is the real beauty of serviced accommodation for guests and travellers. It is fully flexible.

Meanwhile, a traditional buy to let property on an AST, also known as an Assured Shorthold Tenancy, has to have a minimum term of 6 months. This makes it a very rigid arrangement for both the property owner and the traveller staying in the property.

·        What’s Included

Serviced accommodation is often seen as a more affordable option than a hotel. This is because it has all the hotel amenities you would expect and is fully furnished as such. Cleaning in a Serviced Accommodation property is generally on a weekly basis with linen changes at that point too.

However, in addition to this, serviced accommodation will also have a kitchen, separate rooms and living areas. While serviced accommodation offers everything and more than a hotel does, it offers the added extra of space too.

A buy to let property will not have regular cleaning services. It may or may not be provided fully furnished either. A buy to let property will not have kitchen utensils and similar available for those staying either. This is something that serviced accommodation includes.

·        Rental Value

One of the greatest appeals for many property investors is the rental income that is achievable from serviced accommodation. On a standard long-term let for your buy to let property you could get around £750 (before costs) a month for your property, dependent on the size. However, based on a property of the same size that is used for serviced accommodation instead of assured shorthold tenancy, you could rent it for £100+ (before costs) per night.

This would still be attractive to guests as it would still come in at a lower price than the hotel down the road (generally for 2 or more guests). Further to this, it would offer extra space and rooms for friends or family too.

Want to know more about how we can help you on your investment property journey? Contact Julia or Trevor now. We will happily talk about your investment goals and how we can support them.