The Serviced accommodation strategy is rapidly growing in the UK. What does this strategy entail? It’s pretty much a hotel that doesn’t have any staff.
This strategy allows you to rent either the property in its entirety or on a room by room basis for as long as the tenant would like to stay. Bookings for the accommodations are usually made through sites like Airbnb and Booking.com.
Currently, you don’t need any licensing to be able to do this as there is no legislation currently in place. Service accommodations are a great way to get involved in property if you have limited funds but want to invest profitably.
A property currently could rent out now for anything between £500 – £1,000 per month. But if you decide to rent your property out as a serviced accommodation you could £200 to £300 per night.
Apartments could be rented out on a nightly basis from £150 where a monthly rent could fetch between £500 to £700. If you are unable to afford to purchase a property you could look into rent to rents, then renting it out as a serviced accommodation. You would need to come to an agreement with the owner of the property, informing them know that you intend to rent it out on a commercial let.
Before getting involved in any property strategies you will need to do your market research and due diligence. Make sure there is a big enough demand for serviced accommodations in the patch you are planning to invest in.
The market needs to be ripe. A tip that could be done is to check out what the hotels in your area are doing. The prices they are charging and the demand for rooms. Work your strategy around the information that you find out.
Once you have your property to maximize its success you need to be a loud and proud investor. Make sure your accommodation is in good condition and the power team you have around it is efficient.
Systemise everything you want it run smoothly and have a great reputation with all your customers.