Achieving Excellence in Serviced Accommodation: Your Guide

What is Serviced Accommodation?

Serviced Accommodation, also known as SA, is like renting a fully-equipped home for a short time. It's perfect for when you need a place to stay that feels just like home, but with some extra perks thrown in!

Here's the deal: When you book a serviced apartment, you get everything you need, like furniture, appliances, and even cleaning services. Plus, you'll have access to fast internet, streaming services for your favorite shows and movies, and someone to help you out any time, day or night!

You can find these awesome places on websites like Airbnb. And if you're thinking about owning or managing one yourself, it's kind of like having your own little hotel and rental property rolled into one. It's a super cool way to make sure your stay away from home is comfy and stress-free!

What is a serviced apartment?

Imagine a cozy home that you can stay in for a little while, fully furnished with everything you need. That's what a serviced apartment is all about!

It's like a comfy hotel room mixed with the convenience of having your own place. You get all the perks of a hotel, like cleaning and sometimes access to cool stuff like gyms or help from a concierge. But here's the best part – you also get your own kitchen, bedroom, and bathroom, so you can feel right at home.

And the cherry on top? You don't have to worry about extra bills because things like internet and utilities are usually included. It's like staying in your own little oasis away from home!

Exploring the Benefits of Serviced Accommodation for Landlords

Landlords and property owners are increasingly turning to serviced accommodation to maximize their rental property's yield.

With traditional buy-to-let properties, landlords typically secure tenants on a six-month assured shorthold tenancy (AST) agreement, receiving monthly or weekly rental payments.

While this provides a secure income for at least six months, offering serviced accommodation brings additional benefits. It allows greater flexibility, enabling landlords to offer their properties for short periods as well as longer lets.

Additionally, there's the potential to significantly increase rental income. Payments received from guests on multiple short-term lets often exceed the monthly rental received from a tenant on an AST.

Despite the possibility of void periods, you could surpass your monthly AST rental income, depending on location and marketing efforts.

Property owners may also find that selling a short-term rental is easier and quicker, as there is no tenant to consider.

Considerations for Landlords When Offering Serviced Accommodation

While the allure of potential rental income from serviced accommodation is tempting, there are important factors for landlords to keep in mind:

Service Costs: Landlords are responsible for arranging and covering the costs of services included in the rental, such as housekeeping, WiFi, gas, and electricity.
Increased Marketing Expenses: Marketing serviced accommodation may incur higher costs compared to traditional rentals, as landlords need to attract guests more frequently.
Income Variability: Void periods, particularly during slower seasons like winter, can lead to fluctuations in income for landlords offering serviced accommodation.
Furnishing Requirements: Serviced accommodation must be furnished to a high standard commensurate with the rental price to attract guests.
Management Responsibilities: Landlords who choose to manage the property themselves must be available to address guest queries and resolve any issues promptly. Alternatively, utilizing a specialist letting agency incurs fees that impact the overall yield calculation.
Guest Access: Landlords must arrange for new guest arrivals either through a meet and greet or by providing a secure method, such as a coded security box, for guests to obtain keys.

These considerations are essential for landlords to weigh when deciding whether to offer serviced accommodation as a rental option.

Essential Features of Serviced Accommodation

Serviced accommodation is all about offering guests a cozy and convenient home-away-from-home experience. Here's what landlords should include:

Fully Equipped Kitchen: Guests should have access to a kitchen stocked with all the essentials for cooking meals, including appliances like a dishwasher and washing machine.
Bathroom: A clean and well-equipped bathroom is a must-have in serviced accommodation.
Furnished Living Area: A comfortable living space where guests can relax and unwind is essential.
WiFi and TV: Providing reliable WiFi and a TV ensures guests can stay connected and entertained during their stay.
Separate Sleeping Area: Whether it's a dedicated bedroom or a designated sleeping area in a studio apartment, guests should have a comfortable space to rest.
Utilities: Landlords should cover all utilities such as water, electricity, and gas as part of the rental package.
Housekeeping Service: Regular housekeeping services, provided either weekly or more frequently, help maintain cleanliness and comfort for guests throughout their stay.

By including these features, landlords can create a welcoming and hassle-free experience for guests staying in serviced accommodation.

Maximizing Returns with Serviced Accommodation

When it comes to serviced accommodation, putting in a bit of extra effort can lead to great returns. Personally, I don't mind the extra work because the income generated from these properties makes it all worthwhile.

Here are a few models you could consider:

Single House Rental: Rent out the entire property to one tenant, such as a family, for a single rental income stream.
Mini HMO Setup: Transform a single house into a mini House in Multiple Occupation (HMO) by renting out each room separately.
Apartment Conversion: Convert a house into multiple self-contained apartments to cater to different types of guests.

It's essential to be clear about your approach and target clientele. Renting out individual rooms may attract guests looking for a hotel-like experience, while renting to a single family may appeal to a different type of guest.

Some operators in the serviced accommodation market target contractors who are willing to share a house. Ultimately, the decision on how to provide your accommodation and what works best for your property is up to you.

How to Find the Perfect Serviced Accommodation Property

Looking for a serviced accommodation property? Let's make it simple! Here are some easy steps to help you find the right one:

Check Out Similar Areas: Think about where you'd find regular rental properties. That's where you'll likely find serviced accommodation too. No need to get fancy with estate agents – just focus on good-quality rental places.
Know Your Spot: Consider the location. Are you aiming for a busy city center or a popular tourist spot? Knowing this helps you pick the right place for your guests.
Understand Your Guests: Different people want different things. Figure out who your guests will be and what kind of place they'd love to stay in.

Your local estate agent can be a big help in finding the perfect property.

And here's a neat trick: It's smart to choose properties that could work as regular rentals too. That way, if serviced accommodation doesn't work out, you can switch back without any hassle. Flexibility is key!

So, with these tips in mind, you'll be on your way to finding the ideal serviced accommodation property in no time. Happy hunting!

Here's our take on serviced accommodation

Serviced accommodation can be a fantastic strategy. We've seen many businesses thrive in the Progressive Community. The key? Choosing the right property. You need to know your target guests and make your property irresistible. It's all about creating a place that people want to stay in – both inside and out. When you're showcasing your property on platforms like booking.com or Airbnb, stunning photos can really make it stand out and attract the right guests. If you nail that, serviced accommodation can be a winner for you.

That's our top advice for serviced accommodation. At Progressive Property, we believe in diversification (we call it 70/20/10). Don't put all your eggs in one basket. Focus most of your efforts on your primary strategy (the 70), and let serviced accommodation be your supporting act (the 20 or 10), depending on how you feel about it.

Conclusion

Serviced accommodation offers a unique blend of home-like comfort and hotel-like convenience, making it an attractive option for both guests and property owners. For landlords, the flexibility and potential for higher rental income present significant advantages over traditional buy-to-let arrangements. However, the success of serviced accommodation relies on thoughtful consideration of service costs, marketing efforts, and management responsibilities. By providing essential features such as fully equipped kitchens, reliable WiFi, and regular housekeeping, landlords can create an inviting environment that appeals to a wide range of guests. Moreover, choosing the right property and understanding the target clientele are crucial for maximizing returns. With strategic planning and attention to detail, serviced accommodation can become a lucrative addition to a diversified property portfolio, ensuring a comfortable and enjoyable stay for guests and a rewarding venture for landlords.

FAQ's

Q: How is serviced accommodation different from a hotel?

Serviced accommodation differs from hotels primarily in terms of space, amenities, and flexibility. While hotels offer standard rooms with limited space, serviced accommodation provides fully equipped apartments or houses with separate living, dining, and sleeping areas. Additionally, guests in serviced accommodation can enjoy the convenience of a kitchen and laundry facilities, along with more privacy and flexibility in terms of stay duration.

Q: What amenities are typically included in serviced accommodation?

Serviced accommodation usually includes a range of amenities aimed at providing guests with a comfortable and convenient stay. Common amenities may include fully equipped kitchens with appliances and utensils, free Wi-Fi, flat-screen TVs with cable or streaming services, in-unit laundry facilities, and access to communal facilities like gyms or swimming pools. Some serviced accommodation providers may also offer additional services such as housekeeping, concierge, and airport transfers.

Q: How do I book serviced accommodation?

Booking serviced accommodation is typically similar to booking a hotel room, but with more flexibility and options. You can book serviced accommodation directly through property management companies, online travel agencies (OTAs), or booking platforms specializing in short-term rentals. These platforms allow you to browse available properties, compare prices and amenities, and book your stay online. Additionally, some serviced accommodation providers may offer discounts for longer stays or last-minute bookings.